Ministry of Villages Ensures Village Cooperatives Outperform Modern Retail

Jakarta, CNBC Indonesia – Deputy Minister of Villages, Development of Disadvantaged Regions and Transmigration (Wakil Menteri Desa & PDT), Ahmad Riza Patria, said there are no plans to close modern retail outlets in villages; however, with the development of Village/Desa Koperasi Merah Putih (KDMP), it is hoped there will be no more new retail players entering villages. The deputy minister said the government would continue to push the rural economy by ensuring villagers can become participants and drivers of village enterprises, not merely consumers, through the activities via Kopdes MP, BUMDes (Badan Usaha Milik Desa) and Village MSMEs (UMKM Desa).

The KDMP concept is expected to raise productivity, create jobs, spur the economy and improve welfare in village communities. It will not only service retail activities; KDMP will also provide health services and savings-and-loan cooperatives to tackle issues of loan sharks and online lending (pinjol).

Currently, construction of 30,000 Kopdes is underway from a target of 81,000 nationwide. The development has been prepared and equipped with human resources and digitisation, with a concept to meet residents’ basic needs, a locally based economy and absorption of local products, thus the concept differs from modern retail.

What is the target development of Koperasi Desa Merah Putih for the village economy? For more, watch the dialogue with Bunga Cinka and Deputy Minister Ahmad Riza Patria on Nation Hub, CNBC Indonesia (Thursday, 26 February 2026).