Indonesia’s Cooperatives Minister Ferry Juliantono said on Thursday that the government’s flagship Red and White Village Cooperatives program represents a “major gamble” for the future of the rural economy, with up to 20,000 units expected to begin operations by October 2025.
“This is a high-stakes task, because it concerns the very existence of cooperative enterprises in Indonesia. If successful, it will transform the livelihoods of our rural communities,” Juliantono said at a deputy minister handover ceremony in Jakarta.
The initiative, a priority program under President Prabowo Subianto, is designed to turn cooperatives into hubs of village economic activity, ranging from healthcare services such as clinics and pharmacies to staple goods distribution and local product development, including rice, cooking oil, and fertilizers.
Juliantono said making the cooperatives operational is now the ministry’s main focus, requiring a reorganisation to ensure quick and targeted delivery.
He welcomed newly appointed Deputy Minister Farida Farichah, sworn in on Sept. 17, saying she would bring new energy to policy implementation.
He added that 16,000 to 20,000 cooperatives would receive financing from state-owned banks this year, each with access to loans of up to Rp3 billion ($185,000) to fund working capital and infrastructure such as storage facilities and trucks.
To accelerate disbursements, the government is revising Finance Ministry Regulation No. 49/2025 on cooperative lending procedures. The revision will cut red tape by eliminating requirements such as approvals from regional heads and village meetings for every business proposal.
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Translator: Shofi Ayudiana, Martha Herlinawati Simanjuntak
Editor: Azis Kurmala
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