Indonesia’s Minister of Villages and Disadvantaged Regions Development, Yandri Susanto, is calling for national unity in support of the Red and White Village Cooperatives (KDMP) program. The minister made the appeal during a dialogue with journalists on March 16, 2026, emphasizing the program’s potential for growth.
Focus on Rural Economic Benefit
According to a statement released Tuesday, the KDMP program is designed to return 100 percent of net surplus directly to villages, with a particular focus on benefiting residents categorized as economically disadvantaged according to the National Single Socioeconomic Data (DTSEN).
Financial Contributions to Regional Revenue
Village cooperatives will as well contribute at least 20 percent of their profits to regional original revenue, as mandated by Village Minister’s Regulation No. 10 of 2025. This regulation stems from a 2025 presidential instruction aimed at accelerating the program’s implementation.
Protecting Cooperatives from Competition
Minister Susanto also indicated support for policies restricting new permits for major modern retail companies in villages. He expressed concern that these retailers do not provide the same economic benefits to rural communities as the KDMPs.
“Modern retailers may employ local workers, but their profits do not flow into the community. In contrast, village cooperatives channel all profits directly to the people,” Susanto stated.
Related news reports indicate that key facilities are being finalized for 2,200 village cooperatives, and Indonesia is targeting 30,000 village cooperatives to boost the rural economy.
Frequently Asked Questions
What is the primary goal of the KDMP program?
The primary goal of the KDMP program is to empower rural communities by returning 100 percent of net surplus to villages, benefiting economically disadvantaged residents.
What role does the national government play in the KDMP program?
The national government is supporting the program through a presidential instruction to accelerate its implementation and through regulations like Village Minister’s Regulation No. 10 of 2025.
How does the government plan to support the KDMPs against competition from larger retailers?
The government is supporting policies to restrict the issuance of permits for major modern retail companies seeking to open new outlets in villages.
Will the KDMP program successfully address economic disparities in rural Indonesia, and what challenges might it face in achieving its goals?
