Speaking at the Parliamentary Complex in Jakarta on Monday, Syamsurijal underlined that national development efforts must start from villages.
“Building Indonesia from the periphery means the villages must receive empowerment,” he said.
He expressed the hope that the village cooperatives will yield benefits for the people, for instance, by absorbing agricultural products and meeting the basic needs of the community.
However, he also stressed that the cooperatives, whose establishment was initiated by President Prabowo Subianto, must not choke existing local businesses.
“Hopefully, the launch of the Red and White Village Cooperatives will have a positive impact and benefit economic growth in Indonesia,” the DPR deputy speaker said.
Prabowo officially launched around 80 thousand village cooperatives established nationwide under the Red and White Village Cooperatives program in Klaten district, Central Java, on Monday.
The program is aimed at building the economy at the village level to support equality and eradicate poverty. Thirteen ministries and two government agencies are involved in the program’s implementation, besides governors, mayors, district heads, and village heads.
The cooperatives are envisaged as hubs of economic and social services in village communities, offering savings, loans, and clinic services, among others.
In addition, the government has prepared 108 pilot cooperatives that will serve as models for others to emulate. Access to financing from state-owned banks will be opened for these cooperatives under the low-interest-rate People’s Business Credit (KUR) scheme from July 22, 2025.
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Translator: Melalusa Susthira, Raka Adji
Editor: Azis Kurmala
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