Prabowo Launches 80,081 Village Cooperatives to Build Economic Independence
Main Takeaways
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KLATEN, Investortrust.id — President Prabowo Subianto has officially launched the establishment of 80,081 village-level cooperatives, surpassing his administration’s initial target of 80,000 units. The initiative, branded as Koperasi Desa/Kelurahan Merah Putih, aims to serve as a new foundation for Indonesia’s rural economy and is set to operate in every village and subdistrict across the archipelago.
Accompanied by House Speaker Puan Maharani and Coordinating Minister for Food Affairs Zulkifli Hasan, Prabowo inaugurated the program in Bentangan village, Klaten, Central Java, on Monday, July 21, 2025.
“This is a people-first solution to our grassroots economic challenges,” Prabowo declared during the launch ceremony. “We began with a vision, then mobilized a cross-ministerial task force to make it happen. Now we have over 80,000 legal entities ready to serve our people.”
The program, which emerged from Prabowo’s directive to establish cooperatives in all of Indonesia’s roughly 83,000 villages and urban wards, was expedited with support from multiple ministries and government agencies. Coordinating Minister Zulkifli Hasan was appointed to lead the task force overseeing implementation.
From Vision to Execution
President Prabowo expressed surprise at the speed of the rollout, initially expecting full deployment by October or November.
“I thought it would take a few more months,” he admitted. “But when I heard the report—80,000 already completed—I was shocked. It turns out my ministers really worked as a team.”
According to Zulkifli Hasan, also known as Zulhas, the program’s momentum is expected to continue. Of the total cooperatives registered, 108 model units are ready for immediate operation and will serve as benchmarks for replication across regions.
“We’re not just launching institutions—we’re preparing one million cooperative managers to guide our villagers in building sustainable economic units,” Zulhas said. “These cooperatives will become the seeds of new rural economies over the next three to four years.”
The government has set a target to activate all 80,000 cooperatives within three months.
Economic Services at the Village Level
Fithra Faisal Hastiadi, Senior Expert at the Presidential Office’s Communication Division, emphasized that the cooperatives would deliver practical benefits to villagers by simplifying access to essential goods and services. Products such as rice, cooking oil, LPG, fertilizers, and medicines will be available at lower prices through streamlined distribution networks.
“The goal is to cut out the middlemen and bring affordable goods directly to consumers in the village,” Fithra explained.
He added that each cooperative would serve as a hub for public services, microcredit, and social assistance disbursement, while also functioning as a commercial outlet for local farmers and producers. By facilitating direct sales and purchases, the system is expected to create fairer price mechanisms and promote self-sufficiency.
Cooperatives will also be supported by state-owned banks in developing bankable business plans, ensuring wider access to financing and working capital.
“Money will circulate in the village economy, and digital financial services will be more accessible than ever,” Fithra said.
Closed-Loop Rural Economy
Each cooperative is designed to offer an integrated ecosystem, combining traditional retail functions with health clinics, agricultural input supply, micro-lending, and even renewable energy projects such as solar panels and electric vehicles for rural operations.
The cooperatives will receive supply directly from state-linked producers: rice from BULOG, LPG from Pertamina, fertilizers from PT Pupuk Indonesia, medicines from Biofarma, and social aid from the Ministry of Social Affairs.
“In effect, we’re creating a closed-loop economy at the village level,” Fithra said. “We’re reducing supply chain costs and improving rural livelihoods at the same time.”
He noted that similar models have thrived internationally, including food cooperatives in the Netherlands, the UK, Germany, and New York City.
Praise for Cabinet Coordination
Zulkifli Hasan credited the success of the program to collective effort from cabinet members. He singled out key contributors including Minister of Cooperatives Budi Arie Setiadi, Minister of Villages Yandri Susanto, Finance Minister Sri Mulyani, SOE Minister Erick Thohir, and Home Affairs Minister Tito Karnavian.
Other contributors included the Ministers of Health, Social Affairs, Law, Digital Communications, Fisheries, and Energy, along with the heads of national institutions like the Attorney General’s Office, the Indonesian National Armed Forces, and the National Police.
“We were honored to carry out this task,” Zulhas said. “It was a team effort from everyone serving under the President’s leadership.”