Jakarta — Minister of Cooperatives Budi Arie Setiadi has emphasized that the management and operations of Koperasi Desa Merah Putih (Village Cooperatives/Kopdes) will be built on prudence and accountability, rather than as a mere aid or grant scheme.
“We want to operate Kopdes Merah Putih cautiously, with prudence. Every aspect will be carefully considered to minimize and mitigate potential risks,” Budi Arie said during a press briefing at the Presidential Palace in Jakarta on Thursday (May 8).
He explained that Kopdes should be understood as a business institution owned by the village itself. Therefore, any profits generated will be redistributed to members—who are local residents—ensuring that the economic benefits stay within the community.
The Minister also reiterated that Kopdes will serve as the main distribution channel for government-subsidized essential goods, such as rice, LPG, and social assistance.
“The President has made it clear: Kopdes will become the central hub for all rural economic activity—social assistance, LPG, rice—all will be managed through Kopdes,” Budi added.
The establishment of Kopdes is a mandate under Presidential Decree No. 9 of 2025 on the Acceleration of the Development of Merah Putih Village Cooperatives.
The government has set an ambitious target of establishing 80,000 Kopdes units nationwide as part of its vision to build self-sustaining rural economies. The program is expected to be fully operational and officially launched on October 28, 2025, coinciding with Indonesia’s Youth Pledge Day.
