Jakarta, CNN Indonesia — Minister of Cooperatives and Small and Medium Enterprises, Budi Arie Setiadi, emphasized that the existence of the Merah Putih Village Cooperatives (Kopdes) plays a central role in strengthening food security and accelerating village development, especially in Central Papua. He conveyed this during a direct interaction with residents of Bumi Raya Village, Nabire Regency, Central Papua, on Monday (8/11).
According to Budi Arie, Merah Putih Kopdes has a strategic function as a local economic driver and as an innovation in rural development. He added that through this cooperative, farmers can improve the quality of their harvests, fishermen can access broader markets for their catches, and artisans can obtain fair prices for their products.
“The most important thing is that all activities are carried out with a spirit of mutual cooperation so that the benefits can be felt by the entire community,” Budi stated.
Budi also expressed pride in Central Papua being the first province in the Papua region to successfully establish Kopdes Merah Putih in all villages and kelurahan (urban villages). Currently, approximately 1,200 villages and kelurahan in Central Papua have cooperatives, including 81 villages in Nabire Regency.
He further added that this achievement reflects strong commitment from both the community and local government. Budi expressed his gratitude for being able to visit Papua firsthand and praised the unity of the community and traditional leaders in developing this program.
Moreover, Budi affirmed that the central and regional governments will continue providing support through training, access to financing, and partnership opportunities. He emphasized that true independence of cooperatives can only be achieved through community determination and hard work.
“Imagine one day, every village in Central Papua has a strong cooperative capable of managing local potentials, directly benefiting its residents, and becoming a source of pride together. That is the vision of Merah Putih Kopdes,” he explained.
Additionally, President Prabowo Subianto previously launched the program of 80,000 Merah Putih Village Cooperatives on July 21, which is targeted to be fully operational by October 28, 2025. This program aims to strengthen grassroots economy and reduce supply chain links to keep prices affordable.
To support the sustainability of this program, the government issued Ministry of Finance Regulation (PMK) Number 49 of 2025, allowing cooperatives to borrow up to IDR 3 billion from banks. Prabowo also stressed the importance of professional management to ensure the program’s success and maximize benefits for the community.
“I want all managers to carry out their duties well and prove that cooperatives can succeed. Don’t let the past mistakes happen again, where cooperatives were often mocked and failed,” Prabowo emphasized during the launch event in Klaten, Central Java.
