President Prabowo Subianto will inaugurate the Koperasi Desa/Kelurahan Merah Putih (Village/Urban Cooperative “Merah Putih”) on July 21, 2025. This initiative is part of the President’s Asta Cita (Visionary Aspiration) to revitalize local economies and reduce poverty at the village level. Hasan Nasbi, Head of Presidential Communications, explained that Kopdes Merah Putih is one of the core strategies introduced under President Prabowo’s administration, focusing on health, education, and socio-economic development. Three concrete government programs are associated with each element of the strategy: the Free Health Check Program in Schools, the People’s School, and the Kopdes Merah Putih. The aim is to deliver tangible welfare improvements beyond symbolic gestures.
The Kopdes Merah Putih program was launched through Presidential Instruction No. 9 of 2025 on Accelerating the Establishment of Village/Urban Cooperatives Merah Putih, aiming to boost the national economy from the village level and reduce poverty. Thirteen ministries, two national agencies, governors, mayors, regents, and village heads across Indonesia are involved in its implementation. With the goal of eliminating illegal lending operations and predatory lenders, Kopdes Merah Putih is expected to strengthen rural economies, enhance food security, and reduce poverty. By purchasing agricultural products directly from farmers and establishing shorter supply chains, the cooperatives aim to benefit local communities and consumers.
The expansion of Kopdes Merah Putih is anticipated to eliminate exploitative intermediaries, boost local businesses, and improve access to key resources and services in rural areas. Three main strategies will be implemented: establishing new cooperatives, expanding existing ones, and revitalizing underperforming cooperatives. Institutional components will include cooperative offices, basic food outlets, savings and loan units, rural clinics and pharmacies, cold storage facilities, and logistics distribution hubs. Adita Irawati, Senior Expert at the Presidential Communication Office, highlighted that these facilities aim to provide affordable essential goods, secure loans, healthcare services, and efficient logistics chains to support local communities effectively.
