Indonesia village cooperatives and green waqf

In early July 2026 the Indonesian government announced an ambitious plan to establish 40,000 Koperasi Desa/Kelurahan Merah Putih (KDMP) village cooperatives by October 2026, aiming to expand subsidised services and market access for rural producers.

A month later, officials detailed how the Independence Day celebrations would be used to launch the cooperatives, coordinating village heads, consultative bodies and ten village associations. At the same time, the Ministry of Religious Affairs and the Badan Wakaf Indonesia introduced a Green Waqf framework to channel up to Rp 400 trillion of zakat, infak, sedekah and waqf funds into solar installations on mosque roofs, supporting Indonesia’s goal of 100 GW of solar capacity and lowering electricity costs for worship places while redirecting surplus revenue to community development.