Govt Launches Collaborative Move to Boost Economic Independence

RRI.CO.ID, Purworejo - The Indonesian government has kicked off a collaborative program in Purworejo, Central Java, aimed at strengthening economic independence through the Red and White Cooperative (Kopdes Merah Putih) in Dukuhrejo.

The initiative brings together the Ministry of Cooperatives, the Ministry of Social Affairs, the National Agency for Poverty Alleviation (BP Taskin), and the Purworejo Regency Administration, linking the cooperative with the Family Hope Program (PKH) and subsidized food assistance schemes.

Minister of Cooperatives Ferry Juliantono emphasized that Kopdes Merah Putih will serve as a strategic instrument to drive community-based economic activity and gradually help beneficiary families (KPM) move up the welfare ladder.

“This kick-off is a continuation of cross-ministerial cooperation that has been established earlier,” Minister Ferry said on Saturday, February 14, 2026, as quoted by Antara.

The program is part of a government pilot project designed to accelerate the eradication of extreme poverty through village and urban cooperatives. Beneficiaries of the Ministry of Social Affairs’ programs in Purworejo have now joined Kopdes Merah Putih Dukuhrejo, with the expectation that membership will provide greater benefits and foster economic self-reliance.

Minister Ferry explained that the initiative builds on a memorandum of understanding between the Ministry of Social Affairs and the Ministry of Cooperatives, ensuring that beneficiaries are integrated into the cooperative system. Operational support will then help strengthen empowerment efforts.

The launch event was attended by Social Affairs Minister Saifullah Yusuf, BP Taskin Head Budiman Sudjatmoko, Deputy Social Affairs Minister Agus Jabo Priyono, Commission VIII lawmaker Wibowo Prasetyo, Purworejo Regent Yuli Hastuti, Deputy Regent Dion Agasi Setiabudi, and senior officials from both ministries.

Minister Ferry stressed that the collaborative model will be expanded nationwide as Kopdes Merah Putih operations scale up. The goal is to accelerate poverty reduction by enabling families in the lowest income bracket to gradually move toward prosperity.

“We will pilot this in several other regions, making it a model for poverty alleviation so that households in the bottom decile can progress step by step,” he said.

Beyond distributing subsidized goods, Kopdes Merah Putih is envisioned as an offtaker for local products. For example, with support from the Ministry of Social Affairs and Japfa Comfeed Indonesia, beneficiary families have received poultry farming assistance. Their egg production is expected to be marketed through the cooperative, providing additional income streams.

Membership also entitles families to profit-sharing (SHU) from cooperative operations, offering incremental income at the end of each business cycle. Minister Ferry urged the Purworejo administration to ensure consistent and effective implementation of the cooperative’s operations.

Social Affairs Minister Saifullah Yusuf underscored that Kopdes Merah Putih is an integral part of the government’s poverty alleviation framework. He called for strong support from all stakeholders to ensure its sustainability.

“We are tasked with encouraging beneficiaries of social assistance to become members of village cooperatives. Today we are testing that model here,” Saifullah said.

He added that synergy with the Ministry of Cooperatives and BP Taskin must be reinforced, particularly through updated social data, as beneficiary profiles can change rapidly. By 2026, the government hopes to see a significant reduction in extreme poverty in Purworejo, with more families graduating from social assistance programs into economic independence.

BP Taskin Head Budiman Sudjatmoko reaffirmed that poverty eradication is a national priority, urging all ministries and agencies to align their programs. He noted that BP Taskin is developing anti-inflation approaches to ensure that cooperative initiatives like Kopdes Merah Putih contribute effectively to long-term poverty reduction. ***