“Red and White Villages Cooperatives (program) is the people’s hope to become an instrument in their economic struggle—to improve public welfare and promote village development across Indonesia,” he said during a media doorstop after the 78th National Cooperatives Day (Harkopnas) ceremony at his ministry’s headquarters in Jakarta on Saturday.
Setiadi emphasized that the program should not be seen as a mere initiative, but as an effort to devise real solutions to persistent social issues.
He highlighted two major challenges that can be addressed through the cooperative movement: rural poverty and high stunting prevalence. With the active involvement of village cooperatives, both issues could be mitigated, and thereby enable inclusive and balanced economic growth.
“Poverty is still widespread in villages, and the economic gap between urban and rural areas remains stark. This is why we want cooperatives to play a vital role in driving national economic growth,” he said.
According to recent data, rural economies contribute just 14 percent to the national gross domestic product (GDP), with the rest coming from urban centers. “That’s why we need a more equitable economic distribution,” he added.
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As of 2024, Indonesia had 131,617 active cooperatives with nearly 30 million members. Their total business volume reached Rp214 trillion, contributing close to one percent to the national GDP.
Currently, around 80,500 villages and urban wards have established Red and White Village Cooperatives through special village assemblies (musyawarah desa khusus).
Of the total, more than 77 thousand cooperatives have obtained legal status from the Ministry of Law and Human Rights. Meanwhile, 103 cooperatives have been designated national pilot models.
The village cooperatives are scheduled to begin operations following a national launch by President Prabowo Subianto on July 19, 2025.
The government is targeting their full operational rollout by October 2025 to enable the cooperatives to serve the economic needs of local communities.
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Translator: Baqir, Azis Kurmala
Editor: Rahmad Nasution
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