Inauguration of Merah Putih Cooperatives: Minister of Cooperatives Says It Proves Government's Commitment to Building the Economy

REPUBLIKA.CO.ID, JAKARTA – President Prabowo Subianto inaugurated the operationalization of 1,061 Merah Putih Village/Urban Cooperatives (KDKMP) for the East Java and Central Java regions in a symbolic ceremony held at the Nglawak KDKMP, Kertosono, Nganjuk, East Java. This inauguration is considered a historic milestone in village-based economic development.

Prabowo emphasized that the KDKMP represents a milestone in Indonesian history, as it has successfully established a large-scale cooperative ecosystem in a relatively short period. He expressed optimism that through the KDKMP, Indonesia will no longer be seen as a weak nation but will become a strong and great nation due to the role of village communities through the cooperative movement.

“I believe that if you look at other countries, especially in our nation’s history, there has never been a government that has inaugurated the operationalization of more than 1,000 cooperatives physically. Therefore, I think today is a very important day,” said Prabowo in a written statement in Jakarta, Saturday (May 16, 2026).

He explained that the physical construction of the cooperatives began in November 2025, and within seven months, more than a thousand units were successfully operationalized. For this achievement, President Prabowo expressed high appreciation to all Ministers and Heads of Agencies/Institutions in the Merah Putih Cabinet.

According to Prabowo, the KDKMP will be the main foundation in the government’s strategy to build village or urban economies. This program will be combined with other initiatives such as the Free Nutritious Food (MBG) program and the Merah Putih Fishermen’s Village (KNMP) program, so that his belief in the effectiveness of the program in efforts to build the economy in villages/urban areas can be realized.

“The MBG program, if supported by the KDKMP and later supported by the Merah Putih Fishermen’s Village (KNMP), will ultimately lead to downstreaming and industrialization. Through the KDKMP, we will provide affordable credit for the people,” said Prabowo.

Prabowo emphasized that synergy between programs across Ministries and Agencies needs to be strengthened, especially for the KDKMP. Because the KDKMP will become a national pride program as it becomes an instrument in changing the direction of the Indonesian economy in accordance with the mandate of the constitution.

“Let us move forward together with confidence that through these cooperatives, the Indonesian economy will become strong, because our fundamentals are strong,” he said.

Minister of Cooperatives Ferry Juliantono expressed his gratitude that the symbolic inauguration of the operationalization of 1,061 KDKMP for the East Java and Central Java regions went smoothly. This inauguration is an important milestone in strengthening the KDKMP ecosystem, which will then be inaugurated in stages in other regions.

“In August (2026), even though the President said that another 20,000 KDKMP will be inaugurated, we will try our best to exceed the target set by the President,” said Ferry.

With the operation of the KDKMP, Ferry affirmed that the government’s efforts to improve the welfare of communities in villages/urban areas will be realized. The presence of the KDKMP is a real proof of the government’s commitment to building a cooperative-based economy.