Physical Development of 20,000 Red and White Village Cooperatives Completed by June 2026
The Coordinating Minister for Food, Zulkifli Hasan, stated that the development of Koperasi Desa Merah Putih (Red and White Village Cooperatives) is progressing steadily, with tens of thousands of units targeted for completion in the coming months.
As of early 2026, approximately 32,000 Red and White Village Cooperatives are prepared and ready for launch, considering both land availability and construction phase readiness. Of this total, around 2,252 cooperative units have been fully constructed physically, achieving 100% progress.
“Approximately 2,252 units have completed physical construction, but this increases daily as many units have already reached 60%, 70%, or even 80% progress,” Zulkifli stated at the Food Coordinating Ministry office in Jakarta on Wednesday (11 March).
Zulkifli emphasised that the government is targeting the physical construction of approximately 20,000 to 30,000 Red and White Village Cooperative units to be completed by June 2026.
“We estimate that by June, approximately 20,000 to 30,000 cooperative constructions can be completed,” he said.
He explained that the government is also conducting more detailed land surveys in various regions. Some areas, particularly in urban neighbourhoods or municipal areas, face land limitations with areas less than 1,000 square metres. This data collection is being carried out together with the Ministry of Home Affairs to ensure land availability for cooperative development across all regions.
Furthermore, the government is anticipating situations where villages do not have land for cooperative development. In such cases, local governments such as governors or regents will assist in land procurement with regulatory support from the Home Affairs Minister Tito Karnavian through circular letters as legal backing.
Zulkifli stated that the Red and White Village Cooperatives being developed will function not only as village economic institutions but also as distribution infrastructure for various government programmes. The cooperatives will also serve as offtakers for agricultural production from the community, such as rice and maize, in cooperation with Perum Bulog to maintain price stability at the farmer level.
Additionally, the Red and White Village Cooperatives will be equipped with various supporting facilities, ranging from cold storage, essential goods agents, LPG distribution, to clinic services for village communities.
“These cooperatives will also serve as offtakers. For example, if rice prices in a particular region fall below Rp6,500 per kilogramme, the cooperative can purchase and cooperate with Bulog. The same applies to other commodities such as maize,” he said.
He added that each cooperative will be managed by professional managers who not only understand cooperative management but also possess entrepreneurial capabilities. Through this scheme, the government hopes that village cooperatives can become the centre of community economic activity whilst strengthening government programme distribution at the village level.
“If this can be implemented properly, cooperatives need not worry about competing with modern retailers,” Zulkifli concluded.