Minister of Villages Clarifies Village Funds Not Cut for Kopdes, Only Management Altered
Minister of Villages and Underdeveloped Regions (Mendes PDT) Yandri Susanto has emphasised that village funds will not be cut for the Merah Putih Village Cooperative (Kopdes) programme. However, their utilisation will be regulated within the framework of that programme.
“There are now many misleading narratives. Please clarify this. Village funds are not being deducted by the central government or allocated to Kopdes Merah Putih. Only their management structure is being adjusted,” Yandri stressed while attending the 2026 NTB Provincial Musrenbang in Mataram on Thursday (16/4/2026).
According to the National Mandate Party politician, the changes to village fund management aim to promote economic equity in villages through Kopdes Merah Putih.
“Alhamdulillah, 34,000 Kopdes Merah Putih have now been built, with 5,500 units completed across Indonesia,” he said.
Yandri urged that the Kopdes Merah Putih programme be directly overseen by governors, regents, and mayors in NTB. He believes these cooperatives can help communities avoid moneylenders, online loans, and middlemen.
“So Kopdes can lend funds at 6% interest. Compare that to online loans with rates up to 10 to 20%. This is strangling our communities,” Yandri explained.
Yandri targets Kopdes Merah Putih in villages to reduce reliance on modern retailers like Alfamart and Indomaret. He even plans to propose a moratorium on permits for such modern retailers.
“Insha’Allah, Kopdes Merah Putih will replace modern retailers. Because with modern retailers, profits go to investors. With Kopdes, profits will flow back to the village, unlike modern retailers,” he asserted.
The government, Yandri said, will propose halting new permits for modern retailers like Alfamart and Indomaret.
“So with Kopdes, all profits return to the village people, but with the modern retailers I mentioned, they are taken by investors and do not flow back to the village, except perhaps for wages and so on,” he stressed.
Nevertheless, existing permits for modern retailers will remain valid and will not be frozen.
“Those already operating can continue. We won’t interfere with them. What I’m proposing is to stop new permits so that Kopdes can truly grow and develop and become a tool for economic equity for the people in villages,” he said.
Yandri added that this moratorium plan has been communicated with the Ministry of Trade and other relevant ministries.
“It’s currently under review, including my meetings with many regents and mayors. In principle, they have responded positively. Thus, the presence of Merah Putih Village Cooperatives can truly grow well without interference from other modern retailers,” he emphasised.