Coordinating Minister for Food Zulkifli Hasan said the budget for the so-called Red and White cooperatives will come from the existing village funds of Rp1 billion (nearly US$61,000) allocated to each village annually.
Following a limited meeting led by President Prabowo Subianto on Monday, Hasan stated that up to 80,000 villages nationwide will set up these cooperatives.
Each village, he added, will require a budget of Rp3 billion to Rp5 billion for the construction and development of the cooperatives.
Hasan noted that the State Bank Association (Himbara) will play a key role in providing initial funding, which villages can repay in installments over three to five years to ensure smooth operations from the start.
Minister of Cooperatives Budi Arie Setiadi said the cooperatives will be developed through three models: establishing new cooperatives, revitalizing existing ones, and expanding cooperative networks.
He added that around 64,000 farmer groups are ready to form cooperatives, helping integrate agricultural and food distribution systems at the village level.
"One thing is certain: the establishment of the Red and White village cooperatives will break the long distribution chain that harms both consumers and producers, making prices more affordable," he said.
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Translator: Mentari Dwi Gayati, Yashinta Difa
Editor: Anton Santoso
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