JAKARTA – The Red and White Village Cooperative (Koperasi Desa Merah Putih / KDMP), a high-priority government program, is considered vital to accelerating rural development across Indonesia.

"We hold a strong interest in ensuring the success of the Red and White Village Cooperative program, as it utilizes Village Funds (Dana Desa)," stated Minister of Villages and Development of Disadvantaged Regions (Mendes PDT) Yandri Susanto while addressing the Agri Food Forum 2026 at Menara Bank Mega, Jakarta, on Monday (October 19, 2026).

Minister Yandri reassured that the government has not reduced Village Funds; rather, a portion has been reallocated to fund the KDMP initiative, ensuring direct and tangible benefits for rural residents.

Through KDMP outlets, villagers can easily access subsidized commodities such as fertilizers and essential food supplies. Additionally, KDMP enterprises act as off-takers for local agricultural produce.

Under this initiative, villages will acquire tangible assets, including commercial outlets, administrative buildings, logistics trucks, operational vehicles, and distribution motorcycles.

"Village cooperatives are our primary reliance in driving rural economies and supporting food security," Minister Yandri emphasized.

Minister Yandri affirmed that the operational scope of KDMP will not overlap with that of Village-Owned Enterprises (BUM Desa).

BUM Desa business units operate separately from KDMP functions. To date, several BUM Desa entities have successfully executed direct international exports—such as Temon Village, which exports organic palm sugar to the Netherlands and Australia, and Kertasana Village, which exports ornamental koi goldfish to Canada and France.

"Direct exporting cuts distribution chains and maintains price stability. We have prepared pathways to 49 export destination countries," Minister Yandri noted.

He added that other BUM Desa units manage thriving Tourism Villages (Desa Wisata), generating billions of rupiah in local revenue.

Furthermore, Minister Yandri pointed out that nearly 70 percent of Indonesia's population resides across its 75,266 villages, where the vast majority of the nation's natural and economic potential is located.

"At the same time, villages face pressing challenges, including poverty and infrastructure gaps," Minister Yandri said.

With thousands of villages still classified as Disadvantaged and Severely Disadvantaged, Kemendes PDT established the 12 Actions to Build Villages, Build Indonesia framework—a operational policy derived from the 6th Asta Cita pillar: Building from the Villages and Grassroots to Achieve Economic Equity and Poverty Eradication.

To accelerate progress across all 75,266 villages, Kemendes PDT actively engages multi-sector partners to execute integrated programs.

"We are actively promoting the Octahelix Collaboration model, uniting government entities, private enterprises, academic institutions, civil society organizations, and university students," Minister Yandri explained.

Currently, Kemendes PDT also runs the food-focused Thematic Village (Desa Tematik) program, alongside the Export Village (Desa Ekspor) initiative, which generates up to IDR 1 trillion in economic turnover. To support these programs, Kemendes PDT collaborates with the Ministry of Industry to ensure village products meet international export standards.

Minister Yandri expressed firm conviction that rural development will succeed if the Octahelix model is fully leveraged, noting that building villages requires collective action.

"We believe that by successfully developing our villages, we will successfully build Indonesia," Minister Yandri concluded.

Also serving as forum speakers were Deputy Minister of Agriculture Sudaryono, President Director of Bulog Ahmad Rizal, President Director of PTPN III Denaldy Mulino, and President Director of Pupuk Indonesia Rahmat Pribadi.

Accompanying Minister Yandri at the forum were Director General of Economic Development and Rural Investment Tabrani, Director General of Village and Rural Development Nugroho Setijo Nagoro, Head of the Information Development Agency Mulyadin Malik, and Head of the Human Resources Development Agency Agustomi Masik.

Photo: Wening/Kemendes PDT 
Text: Firman/Kemendes PDT