Indonesia Reaffirms Village Funds Intact, Boosts Rural Cooperatives
- 13 Apr 2026 10:37 WIB
- Voice of Indonesia
RRI.CO.ID, Jakarta - Indonesia’s Minister of Villages and Development of Disadvantaged Regions, Yandri Susanto, affirmed that village funds have not been reduced by the central government. Instead, he said, the management and utilization of the funds are being restructured to become more measurable and impactful.
He made the statement during his visit to the Koperasi Desa Merah Putih Bubung in Luwuk Selatan, Banggai Regency, Central Sulawesi, Sunday 12 April 2026. The visit highlighted the government’s efforts to strengthen rural economic institutions through cooperative models.
“Village funds are not taken by the central government, neither by President Prabowo nor the Ministry,” Yandri said. “What has changed is the governance, with the creation of business units aimed at eliminating loan sharks and middlemen while improving distribution systems.”
He emphasized that the cooperative program is designed as a strategic initiative to optimize village-level economic activities. According to him, claims that village funds have been cut are inaccurate and do not reflect current policy.
Yandri added that the expansion of village cooperatives aligns with the sixth agenda of Prabowo Subianto, which focuses on building the economy from rural areas to reduce inequality and poverty. He stressed that equitable development is essential to prevent widening economic gaps.
To support this effort, Yandri proposed a temporary halt on new permits for modern retail outlets. He argued that village cooperatives could take over key economic roles while ensuring benefits remain within local communities.
He also encouraged villagers to actively participate in the cooperative movement, noting that 80 percent of profits would be distributed to members. Meanwhile, the remaining 20 percent would contribute directly to village-generated revenue.
“In contrast to modern retail chains, where profits go to owners, village cooperatives ensure that all benefits return to the people,” Yandri said. He expressed optimism that the initiative in Banggai and surrounding regions would become a model for equitable economic development and poverty reduction.
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