Indonesia rolls out funding and roles for Merah Putih village cooperatives

The Indonesian government is providing comprehensive support to establish Merah Putih village and urban cooperatives (Koperasi Desa/Kelurahan Merah Putih). Assistance includes construction of shops and warehouses, procurement of operational vehicles and equipment, and initial working capital to stock essential goods such as rice, sugar, cooking oil, and local UMKM products. Recipients are required to manage the assets responsibly and repay the funds from cooperative profits, not through additional member fees.

In Central Java's Jepara regency, officials are awaiting technical guidelines from the central government to designate the Merah Putih cooperatives as the permanent off‑taker for fishermen’s catches at the newly built Kampung Nelayan Merah Putih. The fishery hub features an ice plant, cold storage, docking facilities, and a proposed fuel station, aiming to streamline sales and support local economies. Construction of cooperative buildings is progressing, with about 60 of 119 planned sites completed, while other villages await land allocation or suitable plots.

The program seeks to create self‑sustaining, financially viable cooperatives that serve as economic anchors for rural and coastal communities across Indonesia.