TULUNGAGUNG – Plans to establish Merah Putih Village Cooperatives in Tulungagung remain uncertain as local authorities continue to wait for detailed regulations from the central government. Questions over land availability and funding mechanisms have slowed progress despite early preparations in several urban villages.
The Tulungagung administration has started mapping potential locations for the cooperative outlets. Officials have identified several areas that could accommodate the program, which aims to bring community-based economic services closer to residents.
Acting Regional Secretary Tri Hariadi said Karangwaru Urban Village currently stands out as the most prepared location. The area meets spatial planning requirements and already satisfies key zoning regulations. He also noted that Kedungsoko has shown similar readiness.
However, other locations still face significant obstacles. Several urban villages lack land parcels large enough to meet the minimum requirement of 600 square meters. According to Tri, securing suitable land in densely populated urban areas has become one of the biggest challenges for the project.
“Karangwaru is the clearest option because it meets the spatial planning requirements. Kedungsoko also meets the criteria,” he said.
Tri explained that authorities have already allocated land within the Agrinas area for part of the program. For locations outside Agrinas, the local government must develop additional plans before construction can move forward.
Officials want each cooperative outlet to remain close to local residents. As a result, the government continues to search for land within each urban village rather than relocating facilities to other areas.
“We want residents to access these cooperatives easily,” Tri said.
Beyond land issues, local authorities still await technical guidance on how the cooperatives will operate. The government has not yet received detailed instructions regarding management structures, operational procedures, or the possible involvement of urban village officials.
Tri also urged residents to maintain realistic expectations about the program. He emphasized that the initiative will not immediately become a large-scale project that consumes major portions of local budgets.
Meanwhile, Tulungagung Cooperatives and Small Enterprises Agency Head Slamet Sunarto said the financing framework for both Merah Putih Village Cooperatives and Merah Putih Urban Village Cooperatives already appears in Finance Minister Regulation No. 15 of 2026.
Despite that regulation, regional governments across Indonesia still lack guidance on how funding will enter local budgets and how authorities can disburse the money.
Sunarto said each cooperative could receive support of up to Rp 3 billion. That amount matches the funding planned for village-based cooperatives. Even so, the government has not explained how the money will be allocated.
Officials still do not know which activities will receive funding. They also await details on spending priorities and program implementation.
For now, Tulungagung continues preparing potential locations. Local authorities expect faster progress once Jakarta issues complete technical guidelines for the Merah Putih Village Cooperatives program.