Cooperatives Ministry Reports 2025 Budget Absorption Reaches Rp1 Trillion

The Ministry of Cooperatives (Kemenkop) reported that its 2025 budget realisation reached Rp1.006 trillion, or 87.25 percent of the effective ceiling of Rp1.153 trillion, with additional funding focused on accelerating the implementation of the Koperasi Desa/Kelurahan Merah Putih (KDKMP) programme. Minister of Cooperatives Ferry Juliantono, during a working meeting with Commission VI of the House of Representatives (DPR RI) in Jakarta on Wednesday, explained that the budget realisation was supported by an additional expenditure budget of Rp744.44 billion and the unblocking of Rp91.38 billion in funds, bringing the ministry’s final budget ceiling to Rp1.217 trillion. According to him, the additional budget was allocated to expedite the execution of various national priority programmes, particularly the KDKMP programme. He noted that the majority of work units at the central level were able to record budget realisation above 93 percent, with some even reaching approximately 97 percent. However, Ferry acknowledged that the absorption of Deconcentration Funds in the regions still faces challenges. By the end of 2025, the realisation of Deconcentration Funds was recorded at 81.22 percent of the total Rp652.6 billion. He stated that the funds were used for training KDKMP administrators and providing support personnel across all provinces. “The workload and the distribution of KDKMP across Indonesia pose a distinct challenge for us in executing mentoring and training, especially for regions with very large areas,” he said. Throughout 2025, the budget was utilised to train more than 15,000 KDKMP facilitators, 143,000 KDKMP administrators, and 206,000 cooperative human resources personnel. Additionally, the budget was used to integrate 69 cooperatives into the ecosystem of the Free Nutritious Meals (MBG) programme. During the meeting, Commission VI of the DPR RI, in one of the meeting’s concluding points, requested the Ministry of Cooperatives to accelerate the operationalisation of KDKMP by ensuring that established cooperatives have business activities, access to financing, and adequate mentoring to provide tangible economic benefits. To date, only 1,061 KDKMP have been inaugurated and are operating in Central Java and East Java. The government is targeting 40,000 KDKMP to be operational by the end of this year.