28/10/2025
Berita Utama ekonomi

Indonesia Promotes Community-Based Cooperatives to Boost Local Economy in Papua Highlands

Jakarta — The Indonesian Ministry of Home Affairs is encouraging the development of Koperasi Desa (Kopdes) Merah Putih, or Village Cooperatives, across the Papua Highlands, emphasizing the integration of local wisdom and traditional values to enhance the welfare of Indigenous Papuans (OAP) in eight districts throughout the region.

The initiative was highlighted by Deputy Minister of Home Affairs Ribka Haluk in an official statement on Wednesday (October 22, 2025), as part of the government’s broader effort to strengthen inclusive, community-based economic growth in eastern Indonesia.

“We encourage both provincial and district governments to continuously support the Kopdes Merah Putih as a platform to improve the economic wellbeing of people in the Papua Highlands,” Ribka said.

According to Ribka, the cooperative model will help stimulate local economic activity, create livelihood opportunities, and reduce poverty in remote areas.

“President Joko Widodo has instructed that every village in the Papua Highlands should establish its own Kopdes Merah Putih and manage it effectively so that it truly benefits local communities,” she explained.

Designed as a grassroots economic mechanism, the cooperatives are expected to align with the cultural and social dynamics of Papuan society. Local governments — including governors, vice governors, regents, and vice regents — are urged to advance this program in accordance with national regulations.

“These cooperatives should not only accelerate local economic growth but also help explore and develop the unique natural and cultural potential of each area,” Ribka added.

Ribka further noted that the Kopdes Merah Putih initiative enables communities to manage natural resources responsibly under transparent procedures.

“Funding sources for Kopdes Merah Putih are clearly defined — from village funds, state-owned banks (Himbara), and other legitimate financial channels — ensuring proper governance and preventing undue burden on local residents,” she stated.

The program underscores Indonesia’s ongoing commitment to fostering equitable development and sustainable empowerment in Papua — one of the nation’s most diverse yet underdeveloped regions. By rooting economic progress in local culture, community cooperation, and faith-based values, the government aims to strengthen self-reliance and long-term prosperity for Indigenous Papuans.

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