Indonesia Expands Village Cooperatives to Tackle Extreme Poverty

  • 28 Apr 2026 18:51 WIB
  •  Voice of Indonesia

RRI.CO.ID, Jakarta - Indonesia is accelerating efforts to eradicate extreme poverty through village-based economic empowerment programs. The Ministry of Cooperatives is positioning village cooperatives as a key driver to create jobs and improve livelihoods.

Vice Minister of Cooperatives, Farida Farichah, stated that government interventions have significantly reduced extreme poverty levels. “Currently, the number of people living in extreme poverty has declined to around 2.2 million,” she said after a ministerial meeting in Jakarta, Monday, April 27, 2026.

The government is now focusing on 16,550 villages identified as pockets of extreme poverty for targeted intervention. This approach is expected to maximize the impact of national poverty reduction programs in the remaining period leading up to 2026.

To support this effort, the Ministry of Cooperatives is preparing 30,000 Red-and-White Village Cooperatives (KDKMP) across the country. The program is scheduled to be fully operational by August 2026.

“Synchronizing data between the 30,000 cooperatives and the 16,550 targeted villages will be key to the program’s success,” Farida said. She emphasized that accurate data alignment will ensure effective intervention at the grassroots level.

The program will prioritize participation from low-income groups, particularly those in the bottom expenditure brackets. Job opportunities will range from security staff and drivers to shopkeepers and assistant managers within the cooperative system.

Farida assured that individuals lacking technical qualifications would receive training and capacity-building support. This initiative aims to ensure inclusive participation and prepare communities for sustainable economic engagement.

Coordinating Minister for Community Empowerment, Muhaimin Iskandar, highlighted the country’s progress in reducing extreme poverty. “Extreme poverty has declined from 1.26 percent in March 2024 to 0.78 percent in September 2025, meaning around 0.48 percent of the population has moved up economically,” he said.

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