House Member Reminds Government Not to Only Chase KDKMP Quantity Targets

Member of Commission VI of the Indonesian House of Representatives (DPR RI), Darmadi Durianto, has reminded the government not to solely focus on chasing the target number of Village/Subdistrict Red-and-White Cooperatives (KDKMP), but also to ensure that the cooperatives established have a clear business model and are capable of operating sustainably. During a working meeting in Jakarta on Thursday, Darmadi stated his full support for the KDKMP Programme as an effort to strengthen the people’s economy. However, he argued that the programme’s success should not be measured solely by the number of cooperatives successfully formed. “We support this programme. But the question is, was a business feasibility study conducted before the cooperative was opened? Is the location strategic and does it have clear business opportunities?” Darmadi asked. He revealed that his side had received several reports regarding cooperative locations deemed unsuitable, with some cooperatives situated in areas with little economic activity or adjacent to other cooperatives with similar businesses. He assessed that these conditions need the government’s attention so that the budget allocated for cooperative development truly benefits the community. “If this is continuously implemented without strong verification and validation, I worry that many KDKMP will become neglected in the future, because cooperatives must still operate on sound business principles,” he stated. According to him, the success of a cooperative is not sufficiently indicated by the establishment of a cooperative institution, but must also be able to improve the welfare of its members and drive the village economy sustainably. Darmadi requested that the Ministry of Cooperatives ensure all programmes proposed for 2027 have clear success indicators and are oriented towards strengthening the community’s economy. Responding to this, Minister of Cooperatives Ferry Juliantono stated that the government has prepared business models and training modules for the Red-and-White Cooperatives to ensure they can operate sustainably. Ferry said the Ministry of Cooperatives received a mandate through Presidential Instruction Number 9 of 2025 to design the business model as well as training materials for cooperative managers. According to him, the design of the business model is based on a business feasibility study so that the cooperative’s operations can run in accordance with the economic potential in each region. “We have created the design, there is a feasibility study, but once again we will implement this in the operationalisation phase,” he stated. The government continues to accelerate the operationalisation of Village/Subdistrict Red-and-White Cooperatives in various regions, having previously launched the operationalisation of 1,061 Red-and-White Cooperatives in Central Java and East Java as the initial stage of the programme’s implementation. The government also plans to officially inaugurate the cooperatives’ operations in stages with a target of up to 40,000 units operating by the end of 2026.