Government Reaffirms Commitment to Restore Cooperatives as Economic Pillar
The Ministry of Cooperatives has reaffirmed its commitment to revive and restore cooperatives as a primary pillar of the people’s economy on the momentum of the 79th National Cooperative Day (Harkopnas).
Deputy Minister of Cooperatives Farida Farichah stated that the 79th Harkopnas serves as a foundation for the government to revitalise and modernise the cooperative movement, making it more competitive and delivering tangible benefits to the community. According to her, this strategic step is the government’s effort to implement the mandate of Article 33 of the 1945 Constitution, which stipulates that the national economy shall be organised as a common endeavour based on the principle of familyhood.
“That value is the soul of cooperatives: growing together, strengthening one another, and delivering equitable prosperity for the entire community,” she said. She noted that the theme of the 79th Harkopnas, “Empowered Cooperatives, A Glorious Indonesia,” reflects the spirit of mutual cooperation and collaboration to strengthen cooperatives as the foundation of national economic resilience.
The government previously emphasised that the strengthening of cooperatives would be carried out, among other ways, through the Koperasi Desa/Kelurahan Merah Putih (KDKMP), which is expected to become an instrument for strengthening the village economy. At the peak of the 2026 National Cooperative Day on 12 July, President Prabowo Subianto stated that the KDKMP is directed to become a village economic centre as well as the primary distributor of various government subsidies to communities in need.
The President also noted that rural communities, particularly farmers, still face limited access to financing and often rely on loan sharks to meet their needs during the planting season. Therefore, every village is expected to have a cooperative that provides savings and loan services with low interest rates. According to the President, the KDKMP is projected to improve community welfare by up to Rp223 trillion per year through the strengthening of the village economy and distribution chain efficiency.
Based on data from the Management Information System for the Acceleration of the Establishment of Koperasi Desa/Kelurahan Merah Putih (Simpkopdes) as of 14 July 2026, a total of 83,382 cooperatives have been formed, though not all have physical buildings. Of that number, there are 38,054 land proposals for physical construction, 35,867 have been verified, 19,296 cooperatives are still under construction, and 16,091 cooperatives have completed 100 per cent of their construction.