TEMPO.CO, Jakarta - The Center of Economic and Law Studies (Celios) has officially released the findings of its research on the Merah Putih Village Cooperative (Kopdes Merah Putih), a program set to be launched by President Prabowo Subianto on October 28, 2025. According to the study, 65% of respondents identified potential corruption in the governance of the cooperatives.
"This program also has the potential to generate systemic inequality in villages," Celios Director of Public Policy, Media Wahyudi Askar, said on Wednesday, June 4.
The research also found that 76% of village officials rejected the proposed financing model, which would involve loans from state-owned banks (Himbara) to be repaid using village funds. In addition, 46% of respondents expressed concern about the risk of social conflict, while 35% suspected political interests were behind the initiative.
"The core finding of this study is that the Merah Putih Village Cooperative program carries significant risks of misappropriation, threatens state finances, and could suppress local economic initiatives," Media said.
The research surveyed 108 village heads across 34 provinces, and Celios conducted in-depth interviews with all respondents. Using a multi-stage random sampling method, the primary data was collected between May 3 and 20, 2025. Celios maintained respondent anonymity to protect their privacy.
President Prabowo Subianto, through Presidential Instruction (Inpres) No. 9 of 2025, has ordered ministries, agencies, and local governments to accelerate the establishment of 80,000 Merah Putih Village Cooperatives.
Prabowo also issued seven directives to the Minister of Cooperatives, including the development of a business model to define the cooperative's relationship with village governments and other local economic institutions. Ministries and regional heads have been instructed to collaborate actively and provide regular progress reports to the President.
Deputy Minister of Cooperatives Ferry Juliantono estimated that each Merah Putih Village Cooperative would require at least 25 direct employees. "Each one will need at least 25 people," Ferry said in a written statement on Tuesday, May 20, 2025. He added that prospective cooperative managers would undergo internships consisting of 90% hands-on training and 10% theory.
Coordinating Minister for Food Affairs Zulkifli Hasan stated that 9,835 village cooperatives have already been established. This number is expected to grow in the lead-up to the official launch of Kopdes Merah Putih.
In addition, around 130,000 existing cooperatives are still active and are slated to be integrated into the Kopdes Merah Putih network. However, the final decision—whether to continue with the old cooperatives or replace them—will be made through a special village meeting (Musdesus).
Zulkifli explained that socially, the cooperatives are expected to serve as rural economic centers managed under the Kopdes Merah Putih system. The aim, he said, is to shorten distribution chains, allowing producers to deliver goods directly to village cooperatives.
Kopdes Merah Putih will also provide essential goods such as fertilizer, cooking gas, and basic food supplies, while acting as a direct channel for distributing government aid to rural communities.
Minister of Cooperatives Budi Arie Setiadi said the initial capital investment for Kopdes Merah Putih is estimated at Rp210 trillion to Rp350 trillion. Each village will require Rp3 billion to Rp5 billion per year, depending on local assessments.
Funding sources will include village funds, the state budget (APBN), regional budgets (APBD), and loans from the Himbara banks. Village funds are expected to be a major component, as all villages in Indonesia receive budget allocations from the national government.
Himbara will support the cooperatives' funding through installment schemes lasting three to five years. The government is also considering bank loans as an option, given that the amount of village funding varies by region.
Alfitria Nefi contributed to the writing of this article.
Editor’s Choice: Indonesian Govt to Train 240,000 People as Supervisors of Prabowo's Village Cooperatives
Click here to get the latest news updates from Tempo on Google News
Celios: Indonesian People No Longer Have Remaining Income to Save Money
12 jam lalu
Center of Economic and Law Studies (Celios) reveals the cause of the Consumer Savings Index (IMK) in Indonesia to decrease monthly in May 2024.
Swiss Glacier Collapse Buries Alpine Village in Mud, Leaves One Missing
4 hari lalu
An Alpine village was largely destroyed by a Swiss glacier collapse.
Online Taxi Drivers Struggle with 55-Hour Workweek for Just Rp2 Million Salary, Study Shows
6 hari lalu
Researcher from Celios Bara Muhammad Setiadi stated that the income of ojol drivers is equivalent to regular workers who work 41 hours per week.
Zulhas Reveals Why Prabowo's Village Cooperatives Are Partnering with Danantara
12 hari lalu
Zulhas stated that the cooperation between the Red and White Village Cooperatives and Danantara is happening automatically.
NTT Provincial Govt Reacts to Viral Video of Illegal Levies in Ratenggaro
14 hari lalu
The East Nusa Tenggara (NTT) provincial government has responded to the unpleasant incident of extortion experienced by tourists and a YouTuber.
Over 3,000 Villages in Indonesia Still Without Electricity, Says Ministry
16 hari lalu
There are also some villages that receive electricity for only 4 to 12 hours a day, yet are still classified as electrified.
Community Pushback Intensifies Against Rempang Eco City Project
20 hari lalu
The rejection of the Rempang Eco City PSN is displayed on the outer walls of residents' houses with rejection of relocation or local transmigration writing.
Corippo: A Charming Swiss Village on the Edge of Abandonment
22 hari lalu
Corippo has a unique landscape, with small granite houses and a historic church
Trump's Tariff Threatens Indonesia's Labor-Intensive Industries, 1.2 Million Jobs at Risk
35 hari lalu
U.S. tariff hikes under Trump could severely impact Indonesia's labor-intensive industries, risking Rp164 trillion in economic losses.
May Day 2025: Celios Highlights Low Pay and Layoff Issues
36 hari lalu
Director of the Center for Economic and Law Studies (Celios) Bhima Yudhistira highlighted several pressing issues ahead of May Day 2025.
