Government Targets 10,000 Village Cooperatives Operational by August

Jakarta: The Indonesian government is accelerating efforts to launch 10,000 Village Cooperatives Merah Putih across the country by August 2025. The initiative is part of a national strategy to empower rural communities through sustainable, locally driven economic models.

To reach this target, 514 special task forces have been formed to support the establishment of these village cooperatives, with 300 of them already active. These task forces are responsible for ensuring the readiness of infrastructure, regulatory compliance, and community involvement before the cooperatives become operational.

At a follow-up coordination meeting in Jakarta, Tuesday (29/7/2025), Coordinating Minister for Food Affairs Zulkifli Hasan reaffirmed the government’s commitment to completing technical guidelines and business models by next month. These materials will serve as the foundation for consistent and effective implementation nationwide.

“We expect to launch around 10,000 cooperatives in August,” said Zulkifli. “At the very least, that number will be operating by then, but I believe we can go even further. That's why we're planning another national roadshow,” he added.

The upcoming roadshow is set to begin on August 1 and will cover several key regions, including East Nusa Tenggara, West Nusa Tenggara, and various areas across Java. The event will include technical training and outreach activities for cooperative managers and local stakeholders to ensure strong governance and sustainability.

President Prabowo Subianto previously launched the Village Cooperatives Merah Putih program with the ambitious goal of establishing 80,000 cooperatives by the end of 2025. The initiative aligns with the government’s agenda to drive inclusive rural development and reduce economic inequality.

The cooperatives are expected to play a central role in strengthening local economies by supporting agricultural supply chains, empowering small businesses, and facilitating community-based enterprises. In addition to access to capital, the program will offer ongoing capacity-building programs tailored to local needs. 

With momentum building, the government remains optimistic that the Village Cooperatives Merah Putih program will contribute significantly to rural prosperity and become a national model for collaborative, grassroots economic development.