JAKARTA – Minister of Villages and Development of Disadvantaged Regions (Mendes PDT) Yandri Susanto stated that President Prabowo Subianto has laid a solid foundation for Indonesian villages. By establishing the 6th Asta Cita pillar—Building from the Villages and Grassroots to Achieve Economic Equity and Poverty Eradication—President Prabowo has transformed villages from passive objects into the primary subjects of national development.

"President Prabowo explicitly stated 'building from the villages' in literal terms—a directive unprecedented under previous administrations, where villages were traditionally positioned as passive objects rather than active subjects," Minister Yandri stated during the talk show Jejak Perubahan 2: Indonesia Menuju Kemandirian broadcast on TV One, Jakarta, on Monday (October 19, 2026).

Minister Yandri further emphasized that the most effective vehicle to execute the 6th Asta Cita pillar—built around the two core mandates of economic equity and poverty eradication—is the Red and White Village Cooperative (Koperasi Desa Merah Putih / KDMP). He reassured that the rollout of KDMP will not sideline Village-Owned Enterprises (BUM Desa); rather than overlapping, these two rural economic entities will reinforce each other. Kemendes PDT has established clear institutional guidelines to ensure separate, non-competing business domains for KDMP and BUM Desa.

BUM Desa will focus on enterprise management across Export Villages, Tourism Villages, Thematic Villages, and related business verticals. Conversely, KDMP will serve as the government’s operational arm to guarantee that state-subsidized commodities directly benefit rural households.

"Consider LPG subsidies, for instance, where the state allocates trillions of rupiah annually from the State Budget (APBN). Over recent years, however, these subsidies frequently failed to reach needy households at the end of the supply chain, with LPG prices inflating to IDR 24,000 or even IDR 30,000 per cylinder. Through KDMP, the price is kept between IDR 16,000 and IDR 18,000," Minister Yandri explained.

"During my visits to various village cooperatives, residents expressed great appreciation. This exemplifies state presence in ensuring subsidies reach those who need them most. As I noted, President Prabowo created an instrument through KDMP, established directly at the village level," he added.

Currently, KDMP implementation has progressed through the warehouse and outlet construction phase. Out of a target of 80,000 KDMP units, approximately 35,000 have completed construction as of late October, with 10,000 units officially operational.

Minister Yandri reiterated that the central government has not reduced Village Funds (Dana Desa), but rather reformed their management governance. Upon establishment, KDMP assets will be 100 percent village-owned. Under the net profit allocation (Sisa Hasil Usaha / SHU), 20 percent will flow directly into Original Village Income (PADesa), while the remaining 80 percent will be redistributed to local cooperative members.

"This model represents a fundamental departure from modern commercial retailers operating in rural areas. While commercial retail conglomerates extract all profits for capital investors, KDMP operates 100 percent from, by, and for the local village populace," Minister Yandri clarified.

Furthermore, Minister Yandri emphasized that KDMP units are not unilaterally formed by the central government, but established through Special Village Assemblies (Musyawarah Desa Khusus) involving all local governance bodies including the Village Head, Village Consultative Body (BPD), and local community leaders.

"I wish to clarify in this honorable forum that KDMP is not created by the central government. Reports stating otherwise are incorrect. KDMP establishment remains a bottom-up process executed through Special Village Assemblies," he concluded.

Photo: Sigit/Kemendes PDT 
Text: Rifqi/Kemendes PDT