Government Fast-Tracks Extreme Poverty Alleviation Through Merah Putih Village Cooperatives

Jakarta - The Ministry of Cooperatives, Ministry of Social Affairs, the Poverty Alleviation Acceleration Agency (BP Taskin), and the Purworejo Regency Government launched a collaborative kick-off for the Dukuhrejo Merah Putih Village Cooperative (Kopdes) integrated with the Family Hope Program (PKH) and the Staple Food Program Toward Economic Independence on February 14.

This pilot project is aimed at accelerating extreme poverty alleviation through village cooperatives. The event marked the integration of social assistance with an economic empowerment scheme based on Merah Putih Village/Subdistrict Cooperatives. Beneficiary families (KPM) of Ministry of Social Affairs programs in Purworejo are now being encouraged to become members of the Dukuhrejo Merah Putih Village Cooperative to gain broader benefits and gradually move toward self-sufficiency.

Minister of Cooperatives Ferry Juliantono affirmed that the Merah Putih Village Cooperative is being prepared as a strategic instrument to drive community economics and help beneficiaries progressively move up the economic ladder. The kick-off was described as a follow-up to previously agreed inter-ministerial cooperation.

“This is a continuation of the MoU signed between the Ministry of Social Affairs and the Ministry of Cooperatives some time ago to encourage beneficiaries to become village cooperative members. The empowerment aspect will then be supported through the operationalization of the Merah Putih Village Cooperative,” Ferry said in a written statement on Saturday.

Ferry said the collaborative empowerment model for beneficiaries will be expanded to various regions as Merah Putih Village/Subdistrict Cooperatives begin operations. The hope is that this synergy will accelerate welfare improvement for the lowest decile groups so they can progressively move up.

“We will pilot this in several more locations and it will become a model for poverty alleviation so that residents in Decile 1 can decrease and move up to Decile 2 and so on,” he continued.

He emphasized that Merah Putih Village/Subdistrict Cooperatives do not merely function as outlets for subsidized goods and basic necessities. The cooperatives are also positioned as offtakers for products from surrounding residents, including goods produced through cross-stakeholder support.

For example, with assistance from the Ministry of Social Affairs together with Japfa Comfeed Indonesia in the form of a set of laying hens for beneficiaries, it is hoped that the production output can be channeled through the Dukuhrejo Merah Putih Village Cooperative in a more organized and beneficial manner.

“This village cooperative must serve as a place to absorb village community products, such as egg production from assisted livestock that can be sold through the cooperative here, so that residents earn additional income,” he said.

Ferry added that after becoming cooperative members, beneficiaries also have the opportunity to gain economic benefits from the cooperative’s business activities, including the distribution of Surplus Operating Results (SHU) at the end of each period.

“The hope is that after becoming members of the Merah Putih Village/Subdistrict Cooperative, they will also receive additional income from surplus operating results. God willing, by becoming village cooperative members, the benefits will be greater,” he explained.

In closing, he asked the Purworejo Regency Government to ensure consistent operations of the Dukuhrejo Merah Putih Village Cooperative. He also appreciated the synergy between the Ministry of Social Affairs and BP Taskin, which is expected to serve as a lever for accelerating extreme poverty alleviation while strengthening the village economic ecosystem.

“Thank you to the Ministry of Social Affairs and BP Taskin for working together to promote community empowerment,” he said.

Minister of Social Affairs Saifullah Yusuf (Gus Ipul) said the Merah Putih Village/Subdistrict Cooperative is one of the instruments in an effective scheme for accelerating poverty alleviation. He affirmed that the cooperative must be fully supported as it is part of an empowerment program, not merely aid distribution.

“We at the Ministry of Social Affairs are tasked with encouraging beneficiaries of Ministry of Social Affairs assistance to become members of the Merah Putih Village or Subdistrict Cooperative. And today we are piloting it here,” Gus Ipul said.

Gus Ipul hopes cross-institutional synergy will continue to be strengthened so that poverty numbers can be reduced. He also encouraged all parties to participate in updating beneficiary social assistance data, given that social data can change rapidly.

He hopes that in 2026, extreme poverty in Purworejo will continue to decline through strengthened empowerment after beneficiaries join the Merah Putih Village/Subdistrict Cooperative.

Saifullah also mentioned the achievement of beneficiary graduation and the push to increase those numbers. “Thank you—last year, 1,000 beneficiary families graduated from Ministry of Social Affairs programs. We hope next year 3,000 will graduate to become self-sufficient families,” he said.

He emphasized that working-age PKH beneficiaries need to be directed into the Merah Putih Village Cooperative ecosystem. According to him, social assistance is temporary to prevent people from falling further, while the cooperative serves as a pathway to rise and become self-sufficient.

“This is in line with the President’s directive: working-age families must not lose their drive to become empowered families. They must be encouraged to become village cooperative members,” he said.

Poverty Alleviation Acceleration Agency (BP Taskin) Head Budiman Sudjatmiko affirmed that poverty alleviation is a national priority agenda. He encouraged the linking of cross-sector programs to reinforce one another, including the Merah Putih Village/Subdistrict Cooperative as one pathway for accelerating poverty alleviation.

“BP Taskin is formulating anti-inflation program approaches so that all ministry and agency programs can connect and the nation can be saved from the trap of extreme poverty,” he stated firmly.

Purworejo Regent Yuli Hastuti expressed appreciation for central government support and the PKH beneficiary graduation achievements in her region. She stated the Purworejo Regency Government is committed to supporting priority programs, especially economic empowerment and poverty alleviation.

“We are committed to advancing the people’s economy in Purworejo and continuing to support the acceleration of village cooperative operations as part of people-centered economic development,” she said.

Yuli also encouraged PKH beneficiaries to utilize the cooperative as a pathway to self-sufficiency. She believes village cooperatives have great potential to support welfare, including as a platform for entrepreneurship and more productive financial management.

“We want beneficiary families to no longer depend on aid. The Merah Putih Village Cooperative serves as a platform for them to become empowered, save, and do business independently,” she added.