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The Indonesian government has committed to allocating approximately Rp 40 trillion per year from the State Budget (APBN) to cover installments for the Koperasi Desa Merah Putih (KDMP) program. Finance Minister Purbaya Yudhi Sadewa confirmed the funding during the PT SMI Symposium 2026 in Jakarta.
Balancing Economic Growth and Fiscal Stability
Whereas the annual installment is set, other financing schemes for the program remain under review. Minister Purbaya noted that the government is still studying additional components, such as operational support in the field.
The Finance Minister emphasized the need for caution in designing these schemes. The goal is to ensure the program does not create undue pressure on state finances or compromise overall fiscal stability.
Strengthening the Real Sector
The government views the role of cooperatives as essential for strengthening the real sector and improving community welfare. The program is specifically designed to stimulate economic activity at the grassroots level.
Potential outcomes of the initiative include a significant boost to local economies, with estimates suggesting the program could increase village income by Rp 1.4 billion per year.
Massive Recruitment and Training
To manage these units, the government has launched a large-scale recruitment drive for 30,000 Koperasi Desa and Kelurahan (Kopdes) Merah Putih managers. Cabinet Secretary Teddy Indra Wijaya explained that these managers are critical for leading local staff sourced from the villages.
Successful applicants will undergo two months of specialized training in managerial and cooperative practices. This training is intended to ensure managers can effectively implement the program’s goals upon deployment.
What May Happen Next
The recruitment process is currently ongoing, and the final results of the selection are likely to be announced in June 2026. Once selected, these managers may begin their mandatory two-month training period.
the government may provide further clarity on whether operational costs will be absorbed by the APBN as the current financial studies conclude.
Frequently Asked Questions
How much will the state budget contribute to the program annually?
The APBN will cover approximately Rp 40 trillion per year in installments for the Koperasi Desa Merah Putih program.
How many managers are being recruited for the program?
The government is recruiting 30,000 managers to lead the Kopdes Merah Putih units.
What is the purpose of the manager training program?
Selected managers will undergo two months of managerial and cooperative training to ensure they can effectively run the cooperatives and lead local village employees.
Do you believe that large-scale state-funded cooperatives are the most effective way to boost rural economic welfare?
