Indonesia’s Red‑White Village Cooperatives Target 1.4 million Jobs

Indonesian officials stress that the Red‑White Village Cooperative (Koperasi Desa Merah Putih) must prioritize local micro‑enterprise products rather than merely retailing manufactured goods. Legislator Yoyok Riyo Sudibyo warned, “If the cooperative becomes like Indomaret or Alfamart, what’s the difference? Just a name change… the goods are all from big producers.”

The government’s rollout aims to absorb more than 1.4 million workers nationwide by 2029. Each cooperative unit will hire one nationally selected manager and 17 local staff for roles such as cashiers, warehouse workers and security personnel. As of early June 2026, 1,061 units are operating—530 in East Java and 531 in Central Java—and 23,010 sites are under construction. “Through KDKMP, the state builds a strong ecosystem for village economies, helping farmers smile, local businesses grow, and youth find jobs,” said Government Communications Head Muhammad Qodari.

The program is presented as a key element of President Prabowo Subianto’s agenda to improve the welfare of ten million micro‑, small‑ and medium‑enterprise entrepreneurs.