Lebak, Banten – President prabowo Subianto is spearheading a national initiative to bolster cooperatives as a cornerstone of Indonesia’s economic growth, centered around the Red and White Village Cooperatives (KDMP) program. The push aims to improve the welfare of Indonesians, especially in rural areas, and combat poverty.
Cooperatives Minister ferry Juliantono, speaking at the launch of village cooperative operations in Lebak District, Banten, affirmed the ministry’s full support for the President’s vision. “We are exerting all-out efforts to help the president in this cause,” Juliantono stated.
The KDMPs are designed to provide rural households with access to affordable essential goods,while protecting them from predatory lending practices like loan sharks,middlemen,and illegal online lenders,according to Juliantono.The cooperatives will also operate pharmacies and clinics to ensure affordable access to healthcare.
President Subianto officially launched 80,000 KDMPs nationwide in Klaten,Central Java,in July 2025,marking a significant step in the program’s implementation. The initiative has now entered it’s operational phase,including the distribution of loan schemes to capitalize village cooperatives.
The government has allocated Rp16 trillion (approximately $1 billion) through state banks to finance 10,000 KDMPs. “President Prabowo wants funds from the central government to be disbursed quickly to help stimulate rural economies through KDMPs,” Juliantono explained.
Mochamad Hasbi Asyidiki, the District Head of Lebak, expressed optimism that the 344 kdmps planned for his region will help reduce poverty, currently affecting around 111,000 residents. “We are convinced that if KDMPs run well,they will help boost people’s incomes and ultimately alleviate poverty,” he said.
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Translator: Mansyur S, Tegar Nurfitra
Editor: Rahmad Nasution
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