Indonesian Political, Business & Finance News

Jember Regency Encourages KDMPs Hindered by Capital to Start with Simple Businesses

| | Source: KOMPAS Translated from Indonesian | Economy
Jember Regency Encourages KDMPs Hindered by Capital to Start with Simple Businesses
Image: KOMPAS

JEMBER, KOMPAS.com — The limited readiness of capital and the uneven development of Red and White Village Cooperatives (KDMP) in Jember are prompting the local government to change its strategy by accelerating simple business activities ahead of the inauguration in April 2026. Head of the Jember Cooperative, Microenterprise, and Trade Office, Sartini, stated that cooperatives do not have to wait for all facilities and business units to be complete before starting operations. “The important thing is to take action immediately, for example, activities that do not require large capital such as PBB withdrawal facilities,” said Sartini on Monday (23/3/2026). However, Sartini emphasised that the initial stage does not have to involve running all business units right away. According to her, cooperatives can start with the simplest activities with minimal risk as an initial step to build economic circulation. In Jember, only 10 KDMPs have completed construction and begun business activities. The encouragement for non-operational KDMPs to run simple businesses is expected to quickly generate initial income. With that, she said, it can serve as a foundation for the sustainability of cooperative operations. In addition to supporting daily activities, the profits are also projected to be used to pay rental obligations for KDMPs built on non-village assets. With this strategy, she hopes that KDMPs can still function as centres of economic activity upon inauguration, even if not all aspects of development and capitalisation are fulfilled. It is stated that KDMPs are planned to be inaugurated simultaneously nationwide in April 2026. Of the 248 targeted KDMP constructions in Jember, only 104 have been completed and 10 are operational.

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