President Prabowo Subianto is scheduled to inaugurate the Village/Urban Cooperative “Merah Putih” on July 21, 2025. This initiative is part of the President’s aspiration to revitalize local economies and alleviate poverty at the grassroots level. Hasan Nasbi, Head of Presidential Communications, explained that this cooperative is one of three key strategies introduced under President Prabowo’s administration in July 2025.
The three initiatives known as the “trident of poverty eradication” includes health, education, and socio-economic development programs. Each of these elements represents concrete government initiatives aimed at delivering tangible welfare improvements. The aim is to tackle poverty from the village level upwards and emancipate communities from poverty, involving thirteen ministries, two national agencies, governors, mayors, regents, and village heads throughout Indonesia.
The Kopdes Merah Putih program, launched through Presidential Instruction No. 9 of 2025, seeks to reduce inequality and uplift communities from poverty. It addresses the root cause of limited public access to essential services due to poverty. Statistics from 2025 indicate a significant number of Indonesians living in poverty, hindering the country’s progress towards Indonesia Emas 2045. Adita Irawati from the Presidential Communication Office announced the launch of 80,000 Kopdes Merah Putih institutions on July 21, aiming for full implementation by October 28, 2025.
These cooperatives follow an inclusive and community-driven approach, designed to strengthen rural economies, enhance food security, and alleviate poverty. By cutting out exploitative intermediaries, the program aims to boost local businesses and improve access to resources and services in rural areas. The focus on prosperity for farmers is highlighted, with plans to purchase agricultural products directly from them to eliminate middlemen and reduce prices for consumers.
The development of Kopdes Merah Putih will involve establishing new cooperatives, expanding existing ones, and revitalizing underperforming cooperatives. These cooperatives will offer essential services such as cooperative offices, basic food outlets, savings and loan units, healthcare services, cold storage facilities, and logistics distribution hubs. The aim is to provide communities with affordable goods, secure loans, healthcare services, and efficient logistics chains.
