Head of the Presidential Communication Office, Hasan Nasbi, stated that Kopdes Merah Putih is one of three strategic tools for eradicating poverty under Prabowo’s administration, with full rollout planned throughout July 2025.
"The first tool is healthcare, the second is education, and the third is socio-economic empowerment," Hasan said in a statement on Sunday.
These tools are realized through the Free Health Check School Program, the People’s School, and Kopdes Merah Putih. Together, they reflect the government’s strong commitment to achieving real and equitable prosperity.
Kopdes Merah Putih was established through Presidential Instruction No. 9 of 2025 on the Acceleration of Establishing Village/Sub-district Cooperatives. The regulation was issued and came into force on March 27, 2025.
The program aims to build a grassroots economy, promote equity, and free citizens from poverty.
A total of 13 ministries and 2 state agencies are involved in supporting Kopdes Merah Putih, along with governors, mayors, regents, and village heads.
Poverty remains a root cause of limited access to essential services such as education, healthcare, and adequate infrastructure.
According to Statistics Indonesia (BPS), as of September 2024, there were 24.06 million people living in poverty, or 8.57 percent of the population. Of these, 3.17 million were categorized as living in extreme poverty.
Poverty poses a major challenge to achieving the Golden Indonesia 2045 vision, as it greatly affects human capital development.
It limits access to quality education, vocational training, sufficient healthcare, as well as nutritious food and clean water.
Presidential Communication Office Senior Expert Staff Adita Irawati said that the institutionalization of 80,000 Kopdes Merah Putih cooperatives will begin Monday (July 21), with 103 of them serving as pilot models.
These 103 pilot cooperatives will be evaluated for operational effectiveness and later replicated across other villages. All cooperatives are expected to be fully operational by October 28, 2025.
"The 103 model Kopdes will be closely monitored. The others are being prepared gradually. We want to ensure that these cooperatives are not only established and operational but truly benefit the people," said Adita.
Kopdes Merah Putih adopts an inclusive, modern, and collaborative approach. It is designed to strengthen rural economies, boost food resilience, and ultimately reduce poverty.
The initiative also aims to eliminate the predatory practices of illegal online lenders and loan sharks that have long exploited rural communities.
Kopdes Merah Putih is expected to promote local businesses, shorten supply chains, and improve access to resources and services for villagers.
It prioritizes the prosperity of farmers by directly collecting agricultural products, cutting out the long supply chain that often reduces farmers' profits.
This shorter chain helps disrupt middlemen operations while benefiting consumers through more affordable prices.
Kopdes Merah Putih is developed through three main approaches: building new cooperatives, expanding existing ones, and revitalizing inactive cooperatives.
Each Kopdes will include a main office, a basic goods outlet, a savings and loan unit, a village clinic and pharmacy, cold storage facilities, and logistics distribution services.
These features aim to make basic needs more accessible and affordable for the community.
"People can get easier access to capital without relying on loan sharks. Health services are closer. Agricultural and fishery products can be safely stored. Logistics will run smoothly," Adita concluded.
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Translator: Primayanti
Editor: M Razi Rahman
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