Government Targets 40,000 'Red and White' Village Cooperatives to Operate This Year

The government is taking accelerated steps to realise the target of establishing 40,000 Koperasi Desa Merah Putih (Red and White Village Cooperatives), which are expected to begin operations this year. This initiative is part of the government’s grand strategy to strengthen the economic foundation at the village level and support the national food security programme. The Koperasi Desa Merah Putih programme is designed to be a driving force for the people’s economy. With a target of 40,000 units, the government is striving to ensure that every village has an economic institution capable of managing local potential independently and professionally. The presence of these cooperatives is expected to break the long distribution chain for agricultural products and MSME goods, allowing the added economic value to be felt directly by the local community. The government has emphasised that these cooperatives are not merely business entities, but rather a platform for village community collaboration. Based on gathered information, the formation and activation process of these cooperatives is being accelerated to meet the target by the end of the year. The success of the 40,000 cooperatives target requires synergy between relevant ministries, local governments, and village officials. The current main focus is ensuring that the established cooperatives have good corporate governance to ensure long-term sustainability. With the massive operation of the Koperasi Desa Merah Putih, the government is optimistic that the welfare level of village communities will increase significantly, while simultaneously reducing the economic gap between urban and rural areas. Coordinating Minister for Food, Zulkifli Hasan, is targeting the completion of the 40,000 Koperasi Desa Merah Putih (KDMP) units in the near future. In addition to serving as distribution centres for goods and services, the KDMP is projected to act as an offtaker or direct buyer of the community’s agricultural and plantation produce.