In a significant move to bolster economic development in Papua, the Indonesian government has officially launched the “Koperasi Merah Putih” (Red and White Cooperative) initiative. This program aims to establish village and sub-district cooperatives across the region, enhancing local economies and reducing reliance on high-interest loans.
The launch event, held at the Governor’s Office in Jayapura, was attended by Minister of Villages and Development of Disadvantaged Regions Yandri Susanto, Deputy Minister Ahmad Riza Patria, Acting Governor of Papua Ramses Limbong, and various regional leaders.
Minister Susanto emphasized the government’s commitment to revitalizing existing cooperatives. Of the 1,214 cooperatives in Papua, 730 are active, while 484 are inactive. The plan involves transforming these into “Koperasi Kampung Merah Putih” to better serve local communities.
The initiative is part of a broader national effort to establish 80,000 such cooperatives across Indonesia. These cooperatives are designed to offer affordable financial services, reducing the influence of predatory lenders and online loan sharks. Deputy Minister of Cooperatives Ferry Juliantono highlighted that these cooperatives would provide essential services, including subsidized fuel distribution, agricultural support, and local commodity trading.
In Papua, the program has already seen significant progress, with approximately 70% of villages having conducted meetings to establish these cooperatives. The government is optimistic that this initiative will address economic disparities and improve the standard of living for Papuans.
Funding for the establishment of these cooperatives, including notary fees estimated at Rp2.5 million, can be sourced from village funds, provincial budgets, or emergency funds from local governments. This financial support ensures that the formation of cooperatives is accessible to all communities.
The Koperasi Merah Putih initiative represents a strategic effort by the Indonesian government to empower rural communities, promote economic self-sufficiency, and foster equitable growth across the nation.
