Cooperatives Minister Discusses Work Plan and 2027 Budget with Indonesian Parliament

Minister of Cooperatives (Menkop) Ferry Juliantono has expressed appreciation to Commission VI of the Indonesian House of Representatives (DPR RI) for its consistent support and oversight of the Ministry of Cooperatives (Kemenkop) work programme. He expressed hope that the synergy between the two institutions would continue, particularly in overseeing the optimal operationalisation of the Merah Putih Village/Sub-district Cooperatives (KDKMP). Ferry explained that input and recommendations from Commission VI serve as a primary guide in drafting and implementing the Budget Work Plan (RKA) and Government Work Plan (RKP) for the current year and the 2027 fiscal year. “We are very pleased when members of Commission VI provide input on efforts to improve the cooperative mentoring process, especially regarding the operationalisation of the KDKMP,” Ferry stated in a written release on Thursday (11 June 2026). The working meeting was also attended by Deputy Minister of Cooperatives Farida Farichah, Kemenkop Secretary Ahmad Zabadi, all senior and mid-ranking officials, and the President Director of the Revolving Fund Management Institution (LPDB) for Cooperatives, Krisdianto. During the meeting, Ferry reported on the development and operational progress of the KDKMP. Physical construction of warehouses, outlets and other equipment for 12,533 units has been completed, while 22,737 other units are still under construction. The ministry aims to accelerate the operational target of around 30,000 KDKMP units by August 2026, following the commencement of operations of 1,061 KDKMP. “By the end of 2026, we hope the number of operational Merah Putih village cooperatives will reach 40,000,” he clarified. Ferry also discussed securing an additional indicative budget ceiling for the ministry for the 2027 fiscal year amounting to IDR 1.34 trillion, up from the indicative ceiling of IDR 542.88 billion. With this proposal, Kemenkop’s total budget for the 2027 RKA and RKP is expected to increase to IDR 1.89 trillion. The proposed budget will support a management strengthening programme worth IDR 228.37 billion and a cooperatives programme worth IDR 1.12 trillion. Ferry noted the extra funds are needed to ensure the KDKMP programme runs smoothly. “We hope support for this additional budget proposal can proceed optimally. Consequently, the President’s priority programmes can run effectively and provide maximum benefits to the community,” he said. Before the members of Commission VI, he affirmed the ministry’s commitment to ensuring the operational process of KDKMP in areas where physical construction is complete runs well. Monitoring and evaluation will continue alongside efforts to strengthen the cooperative ecosystem and institutions. He assured that attention to existing cooperatives remains a priority so that KDKMP and these cooperatives can work in tandem to boost the welfare of members and the public. Meanwhile, oversight will be enhanced to mitigate the risk of abuse of authority. “The Ministry of Cooperatives will also supervise and mentor troubled cooperatives. Besides managing the KDKMP, we continue to assist existing cooperatives so they maintain high competitiveness,” he detailed. Chairperson of Commission VI, Anggia Ermarini, praised the ministry’s efforts in carrying out the President’s instruction to establish 83,000 KDKMP institutions. She stressed that the most critical stage now is ensuring the operationalisation of the KDKMP. As such, she expressed support for increasing the ministry’s 2027 budget ceiling to guarantee all KDKMP function properly, noting the programme deserves sufficient fiscal support to meet its targets. “Amidst extraordinary efficiency measures, Commission VI supports the budget requirements of Kemenkop to ensure the KDKMP programme and existing cooperatives run well,” she said. Anggia also urged the ministry to maximise monitoring of the KDKMP programme to align with its main goal of stimulating the economy in villages and sub-districts and boosting public welfare.