RRI.CO.ID, Jakarta - Indonesia is accelerating the development of its Red and White Village/Subdistrict Cooperatives (KDKMP) as part of President Prabowo Subianto's strategy to strengthen rural economies and improve the welfare of village communities. Minister of Villages and Development of Disadvantaged Regions, Yandri Susanto, said the initiative is expected to maximize the impact of Village Funds while expanding access to essential services and markets.

Speaking in Jakarta on Tuesday July 28, 2026 Yandri said around 18,000 village cooperatives have completed the construction of warehouses and retail outlets. He added that the government is targeting approximately 35,000 operational facilities by August.

"We hope that by August around 35,000 Red and White Village Cooperatives will have been established," Yandri said. He noted that the government is currently completing supporting infrastructure, including warehouses, retail outlets, and transportation facilities, while preparing a Presidential Regulation to govern the cooperatives' operations.

According to the minister, the cooperatives will help ensure that government assistance, including fertilizer, liquefied petroleum gas (LPG), and agricultural seeds, reaches rural communities more efficiently and on target. They are also expected to serve as off-takers for agricultural products and locally made goods, providing broader market access for village producers.

Yandri said the initiative supports President Prabowo's sixth Asta Cita priority, which focuses on developing Indonesia from its villages to promote equitable economic growth and reduce poverty. He emphasized that strengthening rural economies is central to achieving more inclusive national development.

The minister also clarified that the new cooperatives will not replace Village-Owned Enterprises (BUMDes), which already manage businesses based on each village's local potential. Instead, the cooperatives are designed to complement existing village enterprises by providing daily necessities, savings and loan services, and marketing support for local products.

"So they complement each other; neither replaces the other," Yandri said. He added that the two institutions are expected to work side by side in strengthening village-based economic ecosystems.

Yandri also reaffirmed the ministry's commitment to overseeing the implementation of the program together with 10 village associations across Indonesia. He said village governments, including village heads, village consultative bodies, and local officials, will play a key role in ensuring the successful implementation of the Red and White Village Cooperatives nationwide.