Jakarta (ANTARA) - Home Affairs Minister Tito Karnavian said that the establishment of Red and White Village Cooperatives is a strategic program to strengthen the village economy.In a statement released here on Monday, he explained that efforts to strengthen the village economy are important to curb the rate of urbanization as they can open up employment opportunities for rural communities.
The village cooperatives program would not only create jobs, but also encourage the growth of derivative businesses.
"Due to the presence of business operations there, I believe there will be more than 2 million (people) who will be employed," he said during a regional inflation control coordination meeting in Jakarta on Monday.
According to the minister, urbanization is a problem in several developed countries. Therefore, the Indonesian government has made several efforts to strengthen villages, including the formation of Red and White Village Cooperatives.
"It is a very strategic program for the future of Indonesia," he said.
Baca juga: Prabowo forms task force to expedite 80,000 co-ops plan
He then appealed to regional heads to call for support for the formation of the village cooperatives, including from village heads. Regional heads can also gather village heads to provide explanations about the program.
The Red and White Cooperatives are envisioned as hubs of economic and social services for village communities, which would provide savings, loans, and clinic services, among other things.
Baca juga: Village co-ops can stimulate economy from grassroots up
President Prabowo has issued Presidential Instruction Number 9 of 2025 on the Acceleration of the Red and White Village Cooperatives' Formation to expedite the establishment of 80 thousand village cooperatives across the country.
He has also formed a special task force to accelerate the establishment of the cooperatives across Indonesia. The task force is led by Coordinating Minister for Food, Zulkifli Hasan.
