RRI.CO.ID, Jakarta - The Indonesian Government stated the Red and White Village/Subdistrict Cooperatives (KDMP) will maximize the benefits of village funds for rural communities. The statement was delivered during the National Seminar on Red and White Village/Subdistrict Cooperatives in Jakarta on Thursday, July 16, 2026.

Minister of Villages and Development of Disadvantaged Regions, Yandri Susanto, said the program is designed to strengthen village economies through better management of village funds. He said the initiative is expected to generate sustainable economic benefits for rural communities.

He said the Ministry of Villages wants the program to succeed because it is funded through village funds. He explained that proper management would increase village revenue while returning most of the benefits to villagers.

"At the Ministry of Villages, we truly want this program to succeed because it uses village funds. If these village funds are managed properly through the Red and White Village Cooperative, at least 20 percent of the cooperative's revenue will become village own-source revenue, while 80 percent will return to the people in the village," he said.

Yandri added that the cooperative program would work alongside existing Village-Owned Enterprises (BUMDes), micro, small, and medium enterprises (MSMEs), and small shops. He emphasized that the government would ensure they complement one another instead of competing.

The minister said the cooperative program is part of the government's effort to strengthen villages through collaboration. He stressed that every rural economic institution would be encouraged to grow together and reinforce one another.

He also said the success of the cooperative program would help realize Golden Indonesia 2045. Yandri said stronger village economies are essential to achieving the country's long-term development vision.