The minister communicated this during the dissemination of information on Presidential Instruction Number 9 of 2025, which was streamed online on the YouTube channel of the Ministry of Villages on Monday.
Susanto conveyed this in response to questions from several village heads regarding the continuity of BUMDes in their respective villages, following the government's plan to establish the Red and White Village Cooperatives.
He assured that the cooperatives would complement rather than replace BUMDes, with institutional relationships between the two being regulated by the government.
He explained that the Red and White Village Cooperatives could either integrate into BUMDes or vice versa.
"Cooperatives can become part of BUMDes, or BUMDes' business units can become part of cooperatives," he explained.
Susanto stated that the government is currently developing implementation and technical instructions to address this issue.
Related news: Government aims to establish 80 thousand village cooperatives by June
President Prabowo Subianto has issued Presidential Instruction Number 9 of 2025 on the Acceleration of the Red and White Village Cooperatives' Formation, which is a national strategy to expedite the establishment of 80 thousand village cooperatives across Indonesia.
This Red and White Village Cooperative program aims to strengthen food self-sufficiency, promote economic equality, and develop independent villages toward 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, pharmacies, cold storage for agricultural and fishery products, and logistics distribution.
Earlier, on Thursday (April 10), Cooperatives Minister Budi Arie Setiadi announced that the government is targeting the establishment of 80 thousand Red and White Village Cooperatives by the end of June 2025.
Related news: Indonesia plans task force to advance village cooperatives program
Translator: Tri Meilani, Raka Adji
Editor: Yuni Arisandy Sinaga
Copyright © ANTARA 2025
