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Indonesia steps up drive to strengthen rural economy through village cooperatives

The KDMP programme is one of the Indonesian government's strategic initiatives under a presidential instruction last year, which aims to develop and revitalise 80,000 village cooperatives nationwide in phases.

Jakarta (VNA) – Indonesia is accelerating one of its most ambitious rural development programmes in recent years, aiming to have 40,000 Red and White Village Cooperatives (KDMP) operational by the end of 2026 as part of efforts to revitalise the rural economy.

According to Deputy Minister of Cooperatives Farida Farichah, Indonesia has established around 30,000 KDMP. The cooperatives that are ready to operate are scheduled to be inaugurated by President Prabowo Subianto in August.

According to Juliantono, once the village cooperatives began operating and delivering benefits to local communities, the government would encourage them to expand into production, distribution, industry and credit services to further strengthen the sector.​

This approach aims to build cooperatives into centres of local economic development, creating more jobs and giving people easier access to capital and markets.​

The KDMP programme is one of the Indonesian government's strategic initiatives under a presidential instruction last year, which aims to develop and revitalise 80,000 village cooperatives nationwide in phases./.

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