inp.polri.go.id - Jakarta. President Prabowo Subianto will form an economic activity center in each village called the Red and White Village Cooperative (Koperasi Desa Merah Putih).

This program aims to absorb local agricultural products and shorten the distribution chain to make it more efficient for consumers.

Coordinating Minister for Food Zulkifli Hasan stated that the formation of the Village Cooperative was a direct directive from the President.

The government is targeting the cooperative to be built in 70,000 to 80,000 villages throughout Indonesia. Zulkifli estimates that each village will need a budget of around IDR 3 billion to IDR 5 billion for the construction and development of cooperatives.

"The budget can be allocated from village funds provided by the government of IDR 1 billion per year. If one village gets IDR 1 billion per year, in five years the total can reach IDR 5 billion. However, we are aware that initial funding is still needed," said the Coordinating Minister for Food on Monday (3/3/2025).

To ensure that cooperatives can operate optimally from the start, the government will involve the State Bank Association (Himbara) in initial funding. Villages that receive the funds can later pay in installments over a period of three to five years.

Budi Arie Setiadi added that the cooperative will be developed through three approaches, namely building new cooperatives, revitalizing existing cooperatives, and developing cooperatives that are already running.

He also noted that around 64,000 farmer groups are ready to migrate to become cooperatives. This is expected to increase the integration of agricultural systems and food distribution in villages.

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