Indonesian Political, Business & Finance News

Merah Putih Village Cooperatives Expected to Boost Local Economies in Rural Communities

| Source: VIVA Translated from Indonesian | Social Policy
Merah Putih Village Cooperatives Expected to Boost Local Economies in Rural Communities
Image: VIVA

The presence of Merah Putih Village Cooperatives is believed to bring great hope to rural communities, as the program is touted to drive economic independence in villages.

This is also what Asep Rahmat S, Head of Payung Village, Rajagaluh District, Majalengka Regency, West Java, hopes for. He believes that the Merah Putih Village Cooperative program is in line with the needs of the people in his village.

“I believe that the President’s policy direction through this Village Cooperative program is in line with the needs of the community,” said Asep in a statement on Friday, May 15, 2026.

“Because with this Village Cooperative program, there will be a more established modernisation of the village economy, there will be stability in food prices (affordable), and there will be self-sufficiency in villages throughout Indonesia,” he said.

To drive the village economy, Asep said that the cooperative in his area is trying to maximise local potential, especially related to tourism.

In addition to the businesses that have been set by the President, Asep ensures that his party will also try to maximise the local potential of his village, such as capital for the development of tourism businesses.

“This is very logical because our village is a village that has a lot of tourism potential,” said Asep.

In addition, the KDMP (Village Cooperative) in Payung Village is also focused on developing agricultural businesses, including building a rice storage facility to break the monopoly of middlemen.

“Also, capital for agriculture such as rice, shallots, corn, durian, melinjo and various other agricultural products. And, creating a rice storage business unit so that in terms of rice in our village it can be stable without the monopoly of middlemen,” he said.

Asep said that his party immediately took swift action after the President launched the KDMP program in 2025. The formation of the management and the acceptance of cooperative members became his first step.

“After being launched by the President, I as the Village Head have taken qualitative steps, one of which is forming the management, members and the rules that should be formed in cooperative regulations,” said Asep.

However, Asep said that the development process of the KDMP in Payung Village is still constrained by land. This is because the land to be built is a public facility in the form of a school that has never been used since its establishment.

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