Indonesia targets 30,000 Red and White Village Cooperatives by August 2026

The Indonesian government is accelerating the development of the Red and White Village Cooperatives (KDMP) to drive rural economies and strengthen national food security. Coordinating Minister for Food Affairs Zulkifli Hasan stated a target to complete 30,000 cooperative units by August 16, 2026. These cooperatives are designed to serve as integrated service hubs, distributing social assistance, subsidized fertilizer, LPG, and agricultural machinery, while also absorbing local agricultural and fishery products.

As of recent reports, over 18,000 units have been built, with approximately 1,000 already operational. To manage these entities, the government is recruiting 30,000 managers, including 28,629 graduates from the Indonesian Development Driver Scholar (SPPI) program. In regions like Papua, the program aims to overcome distribution challenges and empower local communities through professional management and incubation programs.

Amidst this rollout, Finance Minister Purbaya Yudhi Sadewa addressed rumors regarding manager salaries. He denied reports that managers would receive Rp16 million per month, calling the figure “unreasonable” and stating that the government would not approve such high amounts. While the government will cover manager salaries through the state budget (APBN) for the first two years, the exact compensation scheme is still being finalized via a Presidential Regulation.