Budi Arie Setiadi - image source: Kemendes PDTT
President Prabowo Subianto has instructed the construction of “Red-and-White” Village Cooperatives (Kopdes) in 70-80 thousand villages as part of the efforts to augment the country’s rural economy.
Coordinating Minister for Food Affairs, Zulkifli Hasan, said that the construction of tens of thousands of Red-and-White Kopdes will use village funds. He projected that the construction of one Red and White Kopdes will cost Rp3-5 billion (US$182,561-US$304,268).
He cited that the initial funding will be handled by members of the State Banks Association (Himbara).
"Himbara will handle it first, then [the villages will] pay in installments. The point is to form the Red-and-White Village Cooperatives," Zulkifli said on Monday, March 3, 2025.
He emphasized that the Red-and-White Kopdes would become the center of economic activities and accommodate agricultural products in villages.
Minister of Villages and Development of Disadvantaged Regions, Yandri Susanto admitted that he had received instructions from President Prabowo to revise the Minister of Villages Regulation No. 2/2024 which regulates the budget focus for the use of village funds.
Meanwhile, Minister of Cooperatives, Budi Arie Setiadi, said that there are three models for establishing the Red-and-White Kopdes, such as establishing new cooperatives, revitalizing existing cooperatives, and building and developing various models of cooperatives.
He cited there are now 64 thousand Farmer Group Associations (Gapoktan) interested in becoming cooperatives. According to him, the establishment of Red-and-White Kopdes aims to shorten the distribution chain of goods, so that producers and consumers are not harmed by many distribution intermediaries.
"The formation of Kopdes will cut the chain of goods distribution which has a detrimental effect on consumers and producers, and so that prices will be cheaper in the community," Budi Arie noted.
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