Govt Sets Goal to Launch 80,000 Rural Cooperatives by October 28
Jakarta, Indonesianpost.com – The Indonesian government aims to establish 80,000 village cooperatives across the country by October 28, 2025, as part of a national initiative to boost rural economies and reduce dependency on urban migration.
The Red and White Village Cooperative Task Force (Kopdes), under the coordination of the Ministry of Food Affairs, announced the target following a coordination meeting held on Friday.
“We have set a deadline for completing special village deliberations (musdesus) in all villages by May 31, 2025,” said Coordinating Minister for Food Affairs and head of the task force, Zulkifli Hasan, during a press conference.
He added that the legal registration of the cooperatives with the Ministry of Law is expected to be finalized by June 30, providing a formal legal foundation for each entity.
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The official launch of the Red and White Village Cooperatives is scheduled to take place on Indonesian Cooperative Day, July 12, 2025.
Hasan emphasized the urgency of establishing village cooperatives on a large scale, noting their potential to strengthen local economies, create over two million jobs, and offer village youth viable alternatives to urban migration.
“If village economies are solid, youth won’t need to migrate. We can absorb a significant workforce locally,” he said.
The initiative also aims to shorten the supply chain for basic goods, reduce distribution costs, and improve access to essential services in remote areas. Additionally, the cooperatives are expected to help eliminate predatory lending practices and reduce the influence of illegal loan providers in rural communities.
“Village cooperatives will connect remote areas directly to economic centers, including banks, producers, and state-owned enterprises,” Hasan explained.
As of now, 16,700 villages have completed the required deliberations to form Red and White Cooperative Units. (BL/Antara)