The budget will be sourced from the government and corporate social responsibility (CSR) funds.
"For the time being, the funding for the establishment of the Red and White Village Cooperatives uses the state budget and regional budget," Patria said in a statement received here on Wednesday.
The government is continuing to explore the best scheme for funding the establishment of the village cooperatives, he added.
According to Patria, the budget needed for the construction of the cooperatives could reach Rp2 billion (around US$118,557) to Rp5 billion (around US$296,393) per village.
He noted that to optimize the budget, each village is expected to prepare land to form the cooperatives' business units, such as village clinics and pharmacies, among other things.
He said that Red and White Village Cooperatives are expected to be centers 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.
President Prabowo Subianto has issued Presidential Instruction Number 9 of 2025 on the Acceleration of the Red and White Village Cooperatives' Formation to expedite the establishment of 80 thousand village cooperatives across the country.
The Red and White Village Cooperatives program aims to strengthen food self-sufficiency, promote economic equality, and develop independent villages to support the Golden Indonesia 2045 vision.
According to the Ministry of Cooperatives, the formation of the village cooperatives is expected to be completed by July 12, 2025, coinciding with the National Cooperatives Day commemoration.
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Translator: Tri Meilani, Raka Adji
Editor: Azis Kurmala
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