According to a copy of the file received on Wednesday, this instruction is a national strategy to expedite the formation of 80 thousand Red and White Cooperatives across Indonesia.
This policy aims to strengthen food self-sufficiency, promote economic equality, and develop independent villages towards realizing the Golden Indonesia 2045 vision.
Red and White Cooperatives are also envisioned as hubs of economic and social services for village communities. These include affordable basic food services, savings and loans, village clinics and pharmacies, cold storage for agricultural and fishery products, and logistics distribution.
In his instructions, the head of state involved the strategic roles of ministries and local governments.
For instance, the Ministry of Cooperatives is tasked with compiling cooperative business models, establishing modules, and conducting digital-based cooperative HR training. Meanwhile, the Ministry of Villages will handle land procurement and disseminate information to village communities.
The Ministry of Finance will allocate funds from the 2025 State Budget as initial capital and provide incentives to villages actively forming cooperatives.
Governors and mayors/district heads are instructed to prioritize the Regional Budget for notarial deeds and cooperative assistance.
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The cooperatives will address the needs of village residents, such as cooperative offices as administrative service centers and clinics and village pharmacies for low-cost health services.
In addition, cold storage facilities are provided to store agricultural and fishery products, savings and loan services for access to business capital, and village logistics to distribute basic necessities.
According to the instruction, funding for these cooperatives comes from various sources: the State Budget, Regional Budget, Village Funds, and Himbara/State-owned Bank (through People's Business Credit/KUR).
Villages that actively form cooperatives will also receive additional incentives from the Village Budget.
The government also encourages villages to take immediate technical steps such as conducting village discussions, coordinating with sub-district heads and cooperative offices, educating residents on the benefits of cooperatives, and conducting legal management through notarial deeds and ratification from the Ministry of Law and Human Rights.
The president also called on village heads to form a cooperative acceleration team with village youth organizations and the family empowerment and welfare team (PKK), while village officials are encouraged to participate in cooperative management training provided by the Ministry of Cooperatives or related agencies.
Prabowo signed the Presidential Instruction in Jakarta on March 27, 2025.
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Translator: Andi Firdaus, Resinta Sulistiyandari
Editor: Yuni Arisandy Sinaga
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