Indonesia expands Merah Putih village cooperatives as hub for subsidies and aid

The Government of Indonesia has designated the Koperasi Desa/Kelurahan Merah Putih (KDKMP) network as the single-point distribution system for a range of social‑aid programmes and subsidised goods, including the Program Keluarga Harapan, non‑cash food aid, LPG, fertiliser and rice. By mid‑July 2026, transactions across the network topped Rp 56.8 billion, driven largely by fertiliser sales, with the East Java province accounting for the highest regional volume.

Profit‑sharing rules stipulate that up to 80 % of cooperative earnings are returned to village residents, while the remainder supports the villages’ own budgets. The government is training roughly 30 000 managers for the cooperatives, with senior military officials and ministries urging them to adopt a patriotic, professional ethos. Regional leaders, such as Governor Khofifah of East Java, highlighted the rapid rise in transaction value as evidence that rural‑level economic activity is “moving and delivering concrete benefits.”

President Prabowo Subianto used the 79th National Cooperative Day to reaffirm the role of cooperatives as a pillar of the national economy, urging the integration of cooperatives with UMKM, BUMN and other sectors to achieve “economic sovereignty” for the people.