Indonesia Seeking Full Operations of Village Cooperatives by Mid-2026

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January 6, 2026 | 05:12 pm

TEMPO.CO, Jakarta - The Indonesian Ministry of Cooperatives is seeking full operations of the Red and White Village Cooperatives by mid-2026. The government is currently focusing the development on physical infrastructure such as kiosks, warehouses, and cooperative business facilities.

"We are targeting to complete over 80,000 units of Red and White Cooperatives by April, to allow for full operations in the middle of the year," said ministry secretary Ahmad Zabadi during an event in Solo, Central Java, on Tuesday, January 6, 2026.

According to him, infrastructure is part of the integral foundation of optimal cooperatives' operations, from distributing essential needs for residents to strengthening the rural and urban community economies.

A number of Red and White Village Cooperatives are showing positive progress. Not only dealing with trades, but these cooperatives also managed large-scale health services, agriculture, and retail operations that served across villages.

"These models must be accelerated once the physical construction concludes," said Ahmad, adding that the cooperatives will be synergized with Village-Owned Enterprises (BUMDes). This synergy is expected to lower prices on staple goods such as fertilizer or  LPG gas.

Meanwhile, for the Red and White Village Cooperatives in disaster-hit regions, Ahmad ensures the government will rebuild them.

At the same time, Ahmad stressed the active role of students in mentoring the management of Red and White Village Cooperatives across Indonesia, one of which is through the study and community service (KKN) program.

The presence of KKN students in villages and neighborhoods is expected to strengthen cooperative management, especially in improving human resource capacity, administrative governance, and tech use.

According to Ahmad, KKN students can help improve the community's understanding of cooperatives, mentor MSMEs, and encourage innovation and digitalization of cooperatives in villages. In addition, students have a strategic role in transferring knowledge and technology to cooperative managers or supervisors.

Thus, the Red and White Village Cooperatives can be managed more professionally and adaptively to strategic environmental changes. "With the KKN students' assistance, the administrative and financing processes of the cooperatives program are expected to improve. Additionally, the introduction of technology, knowledge, and experience brought by the students will accelerate the development of  the Red and White Village Cooperatives. 

Read: Indonesian Govt Floats Plan to Employ Former Migrant Workers in Village Cooperatives

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