Indonesian Political, Business & Finance News

Central Java Has 8,523 Merah Putih Cooperatives, 64% Already Operating

| Source: DETIK Translated from Indonesian | Economy
Central Java Has 8,523 Merah Putih Cooperatives, 64% Already Operating
Image: DETIK

The visit covered KDKMP cooperatives in the villages of Purbayan, Kadilangu and Menuran in Baki sub-district. The monitoring was carried out to assess their readiness to conduct business activities.

The programme began at KDKMP Purbayan, where the agenda included the symbolic distribution of rice aid to 10 recipients, an inspection of the cooperative’s shop and warehouse, business transactions, a low-cost food market and products from micro, small and medium-sized enterprises (MSMEs).

Zulhas said the development of KDKMP was part of the government’s efforts to promote more evenly distributed economic growth down to village and urban ward level.

“President Prabowo wants villages and urban wards to progress. It should not be only cities that develop. Villages must advance, and so must urban wards,” Zulhas said in a statement on Tuesday (13 October 2026).

He said the construction of cooperative buildings was only a first step. The facilities must be accompanied by business activities that meet local people’s needs.

“Of course, these buildings are of no use if they are not put to work. The aim is for the cooperatives to serve the needs of village communities appropriately,” he said.

He explained that KDKMP cooperatives are intended to become service centres for local communities, providing food, fertiliser and subsidised LPG, financial services, and a way to market produce from farmers and MSMEs.

Services will be developed gradually. The government is also preparing support for one cooperative manager, whose costs will be covered for two years. After that, the cooperatives are expected to operate independently.

According to Central Java provincial government data as of 12 October 2026, 8,523 KDKMP cooperatives had been established. Of these, 5,427, or around 64 per cent, were operating, while the remaining 3,096 were still being prepared.

In terms of infrastructure, construction had been completed on 5,895 KDKMP buildings. This placed Central Java second nationally. In Sukoharjo Regency, 151 of the 167 KDKMP buildings planned for villages had been completed.

Central Java’s Head of the Cooperatives and SMEs Office, Linda Widiastuti Ariningrum, previously said the provincial government was speeding up the verification and validation of KDKMP outlets to ensure that buildings, facilities and administrative requirements were ready before operations began.

A total of 4,230 KDKMP cooperatives have been prioritised for verification. As of 30 September 2026, 61.67 per cent of the work had been completed.

“Thankfully, we have exceeded the target set by the central government. Teams are continuing their work in the field, and we are also pushing to speed things up,” Linda said in a statement on 2 October 2026.

In addition to verification, the Central Java provincial government is preparing phased training and competency certification for 5,040 KDKMP treasurers, from October to the end of November 2026.

The cooperatives are also being strengthened through business matchmaking in 35 regencies and cities, the development of commercial partnerships, and support for governance and the marketing of local products.

Purbayan village, for example, has potential businesses including wood-ear mushroom cultivation, rambak crackers, melinjo-chip production, vegetables managed by the Family Welfare Movement (PKK), and wayang puppet crafts.

Luthfi has also stressed that KDKMP development should reflect the characteristics and potential of each area. This is necessary to ensure the cooperatives do more than distribute basic necessities and can also stimulate local businesses.

“Not every KDKMP should be treated as though it were the same; each should be adapted to the region’s local wisdom,” Luthfi said.

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