Indonesia targets 40,000 village cooperatives by 2026

The Indonesian government is accelerating the implementation of the Koperasi Desa/Kelurahan Merah Putih (KDKMP) program, aiming to have 35,000 to 40,000 village cooperatives operational by the end of 2026. Coordinating Minister for Food Affairs Zulkifli Hasan stated that nearly 29,000 cooperatives are currently ready, with 8,000 prioritized for immediate operational support, including the provision of subsidized fertilizers, sugar, cooking oil, LPG, and rice.

To support these cooperatives, PT PLN (Persero) has entered a partnership to provide electricity services, including bill payments and electricity token purchases through Payment Point Online Bank (PPOB) channels. This collaboration aims to create new business opportunities for the cooperatives while improving service accessibility for rural residents.

While the program expands, local authorities in Madiun have noted uneven readiness, reporting that only 29 out of 53 units have met full operational requirements regarding facilities like warehousing and transport. Additionally, the Ministry of Cooperatives is exploring broader ambitions, including the potential for cooperatives to handle civil servant salary distributions and the possible takeover of PT Bank KB Indonesia Tbk (formerly Bukopin).