"President Prabowo Subianto pioneered the KDMP program based on the strategy to help cooperatives catch up with other business entities, such as state-owned and private companies," he remarked in Surabaya, East Java, on Wednesday.
The minister recalled that cooperatives once stood as a strong business model, successfully managing diverse activities spanning production, distribution, industry, and savings and loans services in Indonesia.
He expressed confidence that the KDMP program, which has so far led to the creation of 80 thousand cooperatives nationwide, would strengthen the overall performance of Indonesian cooperatives.
Juliantono noted that the national priority program had now entered its second phase: operationalization. To support this stage, the government has introduced facilitatory measures, including a revision of the Finance Minister’s Regulation No. 49 of 2025.
The updated regulation mandates state-owned banks to provide capital for village cooperatives to start operations.
"State-run banks already have a manual outlining the procedures for disbursing KDMP operational funds. We have even begun disseminating information on how to submit funding proposals," he elaborated.
He further emphasized the importance of collaboration among cooperatives, encouraging more established ones to act as offtakers, aggregators, or consolidators for newly formed KDMPs to foster a stronger business ecosystem.
Additionally, he urged the Indonesian Cooperatives Council (Dekopin) to play an active role in supporting the KDMP program by strengthening human resource capacity through education, training, and mentorship, thereby creating professional and accountable cooperative governance.
President Prabowo simultaneously launched 80 thousand KDMPs in Kendal, Central Java, last July. Though not all cooperatives immediately became operational, the government has designated some of them as pilot projects for the operationalization phase.
Through KDMPs, the government aims to stimulate rural economies by broadening access to affordable essential goods and services to villagers.
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Translator: Astrid F, Tegar Nurfitra
Editor: Azis Kurmala
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