Indonesia advances Red‑White Village Cooperatives governance and social‑aid pilot

The Indonesian government is drafting a Presidential Regulation to set the governance framework for the Koperasi Desa/Kelurahan Merah Putih (Red‑White Village Cooperatives). The draft follows two earlier presidential instructions that accelerated the creation of the cooperatives and their physical infrastructure, prompting criticism that governance rules are being introduced after large‑scale investments. The regulation proposes a two‑year transition during which PT Agrinas Pangan Nusantara, a state‑owned enterprise, will manage daily operations, raising concerns about the traditional bottom‑up cooperative model.

At the same time, Social Minister Saifullah Yusuf (Gus Ipul) announced a pilot to channel social‑assistance (bansos) payments through the cooperatives. The pilot will test the scheme at 900 cooperative sites, exploring two options: using Himbara bank agents within the cooperatives for cash withdrawals, or, once regulations permit, delivering funds directly through the cooperatives without intermediary banks or post offices.