President Prabowo Subianto is set to inaugurate the Koperasi Desa/Kelurahan Merah Putih (Village/Urban Cooperative “Merah Putih”) on Monday, July 21, 2025. This initiative falls under the President’s sixth Asta Cita (Visionary Aspiration), which aims to revitalize local economies and begin efforts to alleviate poverty at the village level. The trident of poverty eradication, introduced by President Prabowo’s administration, consists of health, education, and socio-economic development initiatives. Each element is supported by specific government programs to deliver tangible welfare improvements rather than symbolic gestures.
Kopdes Merah Putih was launched through Presidential Instruction No. 9 of 2025 to accelerate the establishment of these cooperatives, with a focus on building the national economy from the grassroots level. Thirteen ministries, two national agencies, as well as governors, mayors, regents, and village heads across Indonesia are involved in the implementation. The program recognizes poverty as a barrier to essential services like education, healthcare, and infrastructure, with millions of Indonesians still living in poverty according to 2025 BPS data.
With 80,000 Kopdes Merah Putih institutions set to be officially launched on July 21, and 103 designated as model prototypes, the program aims to serve as proof-of-concept for success and replication across villages. This inclusive and community-driven approach is expected to strengthen rural economies, improve food security, and combat exploitation in rural areas. Emphasizing prosperity for farmers, the cooperatives will directly purchase agricultural products to bypass intermediaries and lower prices for consumers.
By establishing new cooperatives, expanding existing ones, and revitalizing underperforming cooperatives, Kopdes Merah Putih will provide essential facilities like food outlets, savings and loan units, healthcare services, and agricultural storage. The goal is to improve access to affordable goods, financial services, healthcare, and efficient logistics chains to benefit local communities.
