The Indonesian government, through the Ministry of Cooperatives, is preparing to expand the business scope of the Merah Putih Village/Sub-district Cooperative (KDMP) into strategic national sectors. Under the plan, in August 2026, the government will inaugurate new operational units covering crude palm oil (CPO) processing and the development of Solar Power Plants (PLTS).
Minister of Cooperatives Ferry Juliantono detailed that the CPO processing plant will be inaugurated in Musi Banyuasin Regency, South Sumatra. Meanwhile, a renewable energy project in the form of a solar power plant with a capacity of 0.5 to 1 Megawatt will be launched on Sembur Laut Island, Riau Islands. This step is part of the government's efforts to diversify the cooperative business lines beyond the food sector to include mining, minerals, and electrical energy industries.
Speaking at the 79th Cooperatives Day commemoration in Jakarta, Ferry emphasized that this transformation aims to make cooperatives an independent economic driving force. The government wants to ensure cooperatives make a tangible contribution to economic growth at the village level while serving as a key instrument in maintaining the circulation of money in rural areas.
As an operational foundation, the government is also finalizing the draft of a new Cooperatives Law. This regulation is expected to replace Law No. 25 of 1992, which is considered no longer relevant to modern economic challenges. The new legal framework is projected to provide stronger legality for cooperatives to execute business expansions across various strategic sectors.
The presence of KDMP aligns with President Prabowo Subianto's vision to restore cooperatives as the 'Pillar' (Soko Guru) of Indonesia's economy. In collaboration with the Indonesian Cooperative Council, the government is committed to pursuing the grand vision of national cooperative figures to enhance public welfare in an equitable and sustainable manner.
