Jakarta, September 19, 2025 — The Europe Today: Indonesia’s Minister of Cooperatives and Small and Medium Enterprises Ferry Juliantono has described the government’s flagship Red and White Village Cooperatives program as a “major gamble” for the future of the rural economy, with up to 20,000 units expected to be operational by October 2025.
Speaking at a deputy minister handover ceremony in Jakarta on Thursday, Juliantono stressed that the program represents a critical test for the sustainability of cooperative enterprises in Indonesia. “This is a high-stakes task, because it concerns the very existence of cooperative enterprises in Indonesia. If successful, it will transform the livelihoods of our rural communities,” he said.
A priority initiative under President Prabowo Subianto, the program seeks to establish cooperatives as hubs of village economic activity, encompassing healthcare services such as clinics and pharmacies, staple goods distribution, and local product development, including rice, cooking oil, and fertilizers.
Juliantono said ensuring that the cooperatives become operational is now the ministry’s main focus, requiring internal reorganization to deliver swift and targeted implementation. He welcomed newly appointed Deputy Minister Farida Farichah, sworn in on September 17, expressing confidence that her leadership would add momentum to policy execution.
To support the initiative, 16,000 to 20,000 cooperatives will receive financing from state-owned banks this year, with each unit eligible for loans of up to Rp3 billion ($185,000) for working capital and infrastructure such as storage facilities and transport trucks.
In addition, the government is revising Finance Ministry Regulation No. 49/2025 on cooperative lending procedures to accelerate disbursement. The revision aims to streamline processes by removing bureaucratic requirements, including approvals from regional heads and village meetings for each business proposal.
