Indonesia builds facilities for 34,000 village co-ops, 2,500 finished

Surabaya (ANTARA) - Indonesian Cooperatives Minister Ferry Juliantono reported that the government had commenced construction of supporting facilities for 34,000 cooperatives under the Red and White Village Cooperatives (KDMP) program, with 2,500 units already fully completed.In a statement cited in Surabaya, East Java, on Sunday, he highlighted that the ongoing construction projects form part of the government's broader goal of equipping all 83,000 KDMPs already established nationwide with facilities and infrastructure necessary for business.

He explained that physical construction begins after cooperatives obtain deeds or certificates for registration as legal entities.

The minister further noted that each KDMP typically convenes a discussion forum bringing together local figures to move forward with the legalization process.

Once legalized, he added, village cooperatives may receive support to develop outlets, warehouses, offices, and other key facilities from the government through state-run food company PT Agrinas Pangan Nusantara and the military, as outlined by Presidential Instruction No. 17 of 2025.

"God willing, construction works for 10,000 will have been completed by August or September," Juliantono said, assuring the public that the number will keep rising.

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Elaborating further, he highlighted that the KDMP program is designed to support rural regions with cooperative stores offering various staple commodities, including subsidized goods.

He added that the government also envisions village cooperatives to run pharmacies, clinics, microfinancial services, storage facilities, and logistical businesses.

The minister went on to say that cooperatives are also encouraged to pursue "business activities aligned with the specific potential and needs of their respective villages."

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President Prabowo Subianto symbolically launched more than 80,000 cooperatives nationwide under the KDMP program in July 2025, with 13 objectives, including empowering rural residents, generating jobs, making key commodities and services more accessible, alleviating extreme poverty, curbing inflation, and boosting the farmers’ exchange rate.

He has decided that each cooperative must be supported with seven essential facilities: management offices, grocery outlets, savings and loan counters, clinics, pharmacies, cold storage, and logistical facilities.