The Ministry of Energy and Mineral Resources (ESDM) is exploring the possibility of allowing Koperasi Desa Merah Putih (Red-and-White Village Cooperatives) to manage coal mining business permit areas (WIUP), a move signaling a potential shift in resource management − putting villages at the forefront of mining operations.

“Yes, it’s possible. But the specific criteria for eligible cooperatives are still being developed,” Tri Winarno, Director General of Minerals and Coal at the ESDM Ministry, said on Tuesday, May 20, 2025.

The initiative stems from the recently enacted Law No. 2/2025 on Minerals and Coal, which provides an opportunity for cooperatives to be prioritized in managing mining areas. The government is currently drafting implementing regulations in the form of a Government Regulation (PP), with a six-month deadline for completion.

“The initiating permit has already been issued. A follow-up meeting between ministries is expected soon,” Tri cited, while confirming that the regulatory framework will be completed this year as scheduled.

Koperasi Desa Merah Putih is a government-backed initiative created under Presidential Instruction No. 9/2025, which mandates rapid establishment of village-level cooperatives across Indonesia. The goal is to set up 80,000 village cooperatives by October 28, 2025, in coincidence with Youth Pledge Day Commemoration.

During a coordination meeting held at the Coordinating Ministry for Food Affairs on Friday, May 16, 2025, the Red-and-White Village Cooperative Task Force (Satgas Kopdes Merah Putih) laid out a detailed timeline:

● May 31, 2025: Deadline for completing musyawarah desa khusus (special village meetings).

● June 30, 2025: Finalization of the legal registration of cooperatives with the Ministry of Law and Human Rights.

● July 12, 2025 (National Cooperative Day): Official launch of Koperasi Desa Merah Putih.

Coordinating Minister for Food Affairs and Task Force Chairman Zulkifli Hasan emphasized the urgency of this large-scale cooperative development, aiming to stimulate local economies and reduce urban migration.

“If the village economy thrives, we can create more than two million jobs and give young people hope so they won’t feel the need to leave their villages,” Zulkifli said on Tuesday, May 20, 2025.

The integration of village cooperatives into strategic sectors like mining represents a bold and inclusive economic vision − one that not only redistributes opportunity to rural areas but also redefines the role of communities in managing Indonesia’s natural wealth.