Cooperatives Minister Requests Additional Rp1.35 Trillion Budget for 'Red and White' Village Cooperatives

Jakarta - Minister of Cooperatives Ferry Juliantono has proposed an additional budget of Rp1.35 trillion for his ministry in 2027 to the House of Representatives’ Commission VI. The extra funding is sought to accelerate the operationalisation of more than 80,000 ‘Koperasi Desa/Kelurahan Merah Putih’ (Red and White Village/Sub-district Cooperatives), which have already obtained legal status, and to strengthen various national cooperative development programmes.

During a working meeting with Commission VI, Ferry explained that the current indicative budget ceiling for the Ministry of Cooperatives in 2027, set by the government, is only Rp542.89 billion. He stated this amount is insufficient to carry out the full mandate of the programmes entrusted to the ministry.

‘Based on SPPI Number S-228/MK.03/2026 and Letter P-385/D.9/PP.04.03/05/2026 dated 7 May 2026, the indicative ceiling for the Ministry of Cooperatives for 2027 is set at Rp542,886,325,000. We hope for the support of Commission VI so that the Ministry of Cooperatives’ budget for 2027 can be increased significantly,’ Ferry said during the meeting at the parliamentary complex in Jakarta on Thursday (11/6/2026).

‘The utilisation of the ceiling is directed to support the National Priority Work Programme for more than 80,000 Red and White Village/Sub-district Cooperatives that have already obtained legal status,’ he continued.

He detailed that the indicative ceiling of Rp542.89 billion consists of the ministry’s own budget of Rp316.85 billion and funds from the Public Service Agency used by the Revolving Fund Management Institution for Cooperatives amounting to Rp226.04 billion.

In detail, the indicative ceiling allocation for 2027 includes Rp158.73 billion for the Ministry Secretariat, Rp27.45 billion for the Deputy for Institutional Affairs and Cooperative Digitalisation, Rp26.03 billion for the Deputy for Cooperative Business Development, Rp42.5 billion for the Deputy for Talent Development and Competitiveness, Rp12 billion for the Deputy for Supervision, Rp50.14 billion for deconcentration funds, and Rp226.04 billion for the Revolving Fund Management Institution.

Ferry explained that the budget is divided into a Management Support Programme worth Rp158.73 billion and a Cooperative Programme worth Rp384.16 billion. ‘The Management Support Programme allocation of Rp158,727,050,000 will be used for salaries and allowances amounting to Rp99,817,304,000, and operational and office maintenance costs of Rp58,909,746,000,’ he stated.

Meanwhile, the Cooperative Programme will be focused on supporting priority activities across technical units, ranging from the completion of the Draft Cooperative Law, cooperative digitalisation, business potential mapping, human resource capacity building for cooperatives, to supervision and health assessments of cooperatives.

Request for Additional Rp1.35 Trillion

However, Ferry assessed that the ministry’s actual budget needs are far greater. Consequently, the Ministry of Cooperatives is proposing an additional budget of approximately Rp1.35 trillion, specifically Rp1,345,828,236,000, for 2027.

‘Considering the magnitude of the challenges and the broad scope of programmes mandated to the Ministry of Cooperatives, we propose an additional budget for 2027 of Rp1,345,828,236,000. Thus, the total budget ceiling after the proposed addition would become Rp1,888,714,561,000,’ he said.

The additional budget consists of Rp228.37 billion for the Management Support Programme and Rp1.117 trillion for the Cooperative Programme.

Ferry elaborated that the additional budget will be directed towards two main programme groups. First, organisational operationalisation, covering the strengthening of planning, monitoring and evaluation functions, central-regional coordination, human resource development, public communication, information technology infrastructure strengthening, cooperative regulations, and internal supervision. ‘This includes proposed activities specifically for the socialisation of the Red and White Village/Sub-district Cooperatives,’ he noted.

Second, the strengthening and development of cooperatives, which includes support for national priority programmes and presidential directives, increasing cooperative business capacity, strengthening institutional and governance structures, improving cooperative human resource competencies, and reinforcing supervisory functions.

Of the total proposed additional budget of Rp1.345 trillion, the largest portion is directed to several technical deputies. The Deputy for Cooperative Business Development is the largest recipient of the proposed additional budget, at Rp277.4 billion. This budget will be used to facilitate business potential across various sectors, including agro-maritime, miscellaneous businesses, livestock, dairy, fisheries, and tourism. The budget will also be used for production assistance, strengthening cooperative partnerships, and developing cluster-based cooperative business ecosystems and networks.

Furthermore, the Deputy for Talent Development and Competitiveness is proposed to receive an additional Rp267.04 billion for developing cooperative entrepreneurship, improving human resource competencies, extension services, socialisation of cooperative formation, and strengthening access to capital and financing.

Meanwhile, the Deputy for Institutional Affairs and Digitalisation is proposing an additional Rp234.49 billion, which will be used for cooperative legal entity services, mentoring and restructuring of cooperatives, implementation of risk management, digitalisation of the Red and White Village/Sub-district Cooperatives, and strengthening cooperative regulations.

The Deputy for Supervision is requesting an additional Rp183 billion for licensing guidance, cooperative audits, handling problematic cooperatives, advocacy, mediation, and complaint management.

The Ministry of Cooperatives is also proposing an allocation of Rp22 billion for the Indonesian Cooperative Council to support the strengthening of the national cooperative movement. Additionally, Rp191.68 billion is proposed for cooperative empowerment support in the regions, covering central-regional coordination, competency training, and human resource talent development for cooperatives.

Ferry expressed hope that Commission VI would support the proposed additional budget so that the strategic targets for cooperative development, particularly the acceleration of the operationalisation of 80,000 Red and White Village/Sub-district Cooperatives, can proceed optimally.