Indonesia to Launch 70,000 Rural Cooperatives to Boost Village Economy and Food Sovereignty

JAKARTA, investortrust.id — The Indonesian government has finalized plans to launch a nationwide program of rural cooperatives aimed at strengthening village economies and supporting national food sovereignty. Coordinating Minister for Food Affairs Zulkifli Hasan confirmed that the rollout of the Red-and-White Village Cooperatives, is now only awaiting a presidential instruction to proceed.

Speaking at his residence in Cipinang, East Jakarta, on Monday, March 31, Zulkifli said, “We’re just waiting for the presidential instruction, expected by June.” He added that the government aims to officially launch the program in July, following the issuance of the directive.

Once approved, the program will be implemented immediately, with village administrations taking the lead in establishing the cooperatives. “The initiative will be spearheaded by village governments. We’ve already started organizing it. Once the instruction is out, we will move forward without delay,” he said.

Although the funding scheme is still under review, preliminary estimates place the investment per cooperative between Rp 3 billion and Rp 5 billion, equivalent to approximately $184,000 to $305,000. Zulkifli noted that the government is still weighing whether financing will come from local government budgets (APBD) or the national budget (APBN).

The creation of Red-and-White Village Cooperatives aligns with the government’s 2025–2029 National Medium-Term Development Plan (RPJMN), the Asta Cita framework, and Indonesia’s broader national priorities. The cooperatives are envisioned to play a central role in achieving self-sufficiency in food production, driving downstream processing of agricultural and maritime resources, and fostering industries based on natural resources.

The government targets the establishment of 70,000 rural cooperatives across the country. This ambitious initiative is not only aimed at boosting local economies, but also at addressing structural challenges in rural areas and providing a platform for inclusive, community-driven development.