“In essence, we request that the presence of KDMP does not impose new burdens on villages but acts as a gateway to success in each village,” Minister of Villages and Disadvantaged Regions Development Yandri Susanto said at a special deliberation on village cooperative financing, monitored in Jakarta.
He said the cooperatives represent a major opportunity for villages to strengthen their economies. Villages will be involved in every stage—from establishment and financing to operations—and will receive a 20% service fee from profits.
If managed effectively, Yandri said, the scheme will reduce reliance on intermediaries, create jobs, expand access to capital, and accelerate economic equality at the grassroots level.
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“This noble initiative by President Prabowo must be successfully implemented together, building from the villages and from the grassroots to achieve economic equity and prosperity,” he added.
The ministry earlier issued Regulation Number 10 of 2025, which sets out the approval process for financing Red White Village Cooperatives.
Signed by Yandri on Aug. 12, the regulation establishes procedures titled “Approval Mechanism from Village Heads for the Financing of Red White Village Cooperatives.”
He said the regulation outlines the authority of village heads to approve financing in the form of loans, based on local deliberations, for cooperative business activities.
Those activities include running cooperative offices, supplying nine essential goods, managing village clinics and pharmacies, operating warehouses and logistics services, and offering savings and loan facilities.
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Translator: Tri, Azis Kurmala
Editor: Rahmad Nasution
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