RADAR TULUNGAGUNG – The Indonesian government is accelerating the development of the Merah Putih Village Cooperatives program as part of a broader strategy to strengthen the rural economy and transform villagers into active economic players. The ambitious initiative has now entered a crucial stage after the recruitment process for cooperative managers officially closed on April 24.
Speaking in a televised interview, Indonesian Cooperatives Minister Feri Juliantono said hundreds of thousands of applicants had registered to become managers for the Merah Putih Village Cooperatives across Indonesia.
The government is preparing around 30,000 manager positions for village cooperatives and another 5,000 positions for Merah Putih Fishermen Villages. Multiple state institutions, including the Ministry of Defense, the National Civil Service Agency, and the Ministry of Administrative and Bureaucratic Reform, are handling the recruitment process.
The Merah Putih Village Cooperatives program has become one of the flagship economic projects under President Prabowo Subianto’s administration. The initiative aims to strengthen local distribution systems, absorb rural production, and create sustainable business ecosystems in villages and urban neighborhoods.
Massive Recruitment for Professional Cooperative Managers
According to Feri Juliantono, the government is prioritizing applicants with managerial capabilities and strong leadership potential. Most candidates are university graduates, while the government also considers intellectual qualifications as part of the selection process.
The recruited managers will later oversee various business activities inside the cooperatives, including retail stores, warehouses, microfinance institutions, village clinics, pharmacies, transportation units, and logistics systems.
“These managers are expected to orchestrate all operational activities in the cooperatives,” Feri explained during the interview.
Each cooperative will also recruit supporting workers from local communities, including cashiers, drivers, warehouse staff, and security personnel. The government hopes the program can generate significant employment opportunities for villagers across Indonesia.
Thousands of Cooperative Buildings Already Under Construction
The government confirmed that more than 83,000 Merah Putih Village Cooperatives have already secured legal entity status. Meanwhile, over 25,000 physical facilities are currently under construction.
Out of those projects, approximately 6,200 cooperative buildings have already been fully completed. The government expects another 35,000 facilities to become operational within the next one to two months.
The construction includes warehouses, retail outlets, transportation support, and business equipment designed to support village-based economic activities.
However, the government admitted that finding land with a minimum size of 1,000 square meters has become a challenge, especially in urban areas. As a solution, the Ministry of Cooperatives is considering smaller land requirements and vertical building concepts for cooperatives located in cities.
Merah Putih Village Cooperatives to Become Rural Economic Hubs
The government has assigned three major functions to the Merah Putih Village Cooperatives. First, they will distribute essential goods to local residents. Second, they will absorb agricultural and fisheries products from villagers. Third, they will help distribute social assistance programs.
One of the main priorities is transforming the cooperatives into “offtakers” capable of buying products directly from farmers, fishermen, and local producers. To support this role, the government plans to equip cooperatives with cold storage facilities, drying machines, and temperature-controlled storage systems.
The goal is to shorten the supply chain that has long burdened Indonesian farmers and small producers. By reducing middlemen, the government hopes producers can receive higher profits while consumers enjoy lower prices.
In addition, the cooperatives are expected to help protect villagers from predatory lending and illegal online loans through the establishment of village-based microfinance institutions.
Rp3 Billion Funding for Every Cooperative
Each Merah Putih Village Cooperative will receive access to approximately Rp3 billion in funding support. The financing covers physical infrastructure, operational equipment, vehicles, and initial business capital.
Feri stressed that the cooperatives must operate as professional business entities capable of generating profit. The government plans to implement strict supervision, risk mitigation systems, and business performance monitoring to ensure sustainability.
“The cooperative must be profitable because this is a business entity,” he emphasized.
The government also believes the program can help millions of Indonesians transition from aid recipients into cooperative members and active participants in local economic growth.
Government Pushes Modern Image for Cooperatives
To remove the old stereotype surrounding cooperatives, the Ministry of Cooperatives is also focusing on digital transformation and professional management systems.
The ministry has recruited business assistants and project management officers to educate cooperative administrators across regions. Digital systems and modern management platforms are also being prepared to support daily operations.
Feri said the government wants the new generation of cooperatives to appear modern, attractive, and professionally managed by young Indonesians.
The Merah Putih Village Cooperatives program is expected to become one of the largest grassroots economic transformation projects in Indonesia, while supporting President Prabowo’s target of achieving 8 percent national economic growth.