Jakarta. Only a fraction of Indonesia’s 83,000 legally established Red and White Village Cooperatives (KDKMP) have begun running businesses, raising concerns over the implementation of President Prabowo Subianto and Vice President Gibran Rakabuming Raka’s flagship grassroots economic program, a cooperative expert said.

Rully Indrawan said around 60% of the cooperatives had been fully established with management structures, but fewer than 12% had operational business management. The figures highlight a gap between legal establishment and actual business activity during the administration’s first two years.

“Of the total, around 60% have been properly established, with legal status and management in place. However, fewer than 12% have management teams or business operations that are actually running. This is far from what we had hoped to achieve over the past two years,” Rully said at the B-Universe office on Tuesday.

KDKMP program is intended to strengthen local economies by empowering communities at the grassroots level. Rully said the objective was sound, but its implementation lacked a clear business model and sufficient operational readiness.

He said the government needed to establish clearer norms, standards, operating procedures and criteria (NSPK) so communities could understand how to manage the cooperatives and what economic benefits members could expect.

“Our hope is that the government will implement genuine pilot projects. Let us first determine which regions will serve as pilots, starting with the provincial level,” he said.

Rully also criticized the emphasis on physical development and legal establishment without adequate preparation for day-to-day business operations. He warned that the gap could expose the program to public criticism, undermining an initiative intended to strengthen village and urban ward economies.

“The cooperatives have become victims of a policy that, in my view, has not been fully worked out or properly coordinated,” he said.

Coordination among the parties responsible for implementing KDKMP also needs improvement, Rully said, adding that differences in policy views could obstruct execution without clear communication and alignment among decision-makers.

With three years remaining until 2029, he urged the government to use the time to address weaknesses in business planning, management capacity, coordination and public communication.

“The most important things are commitment, capacity and clear public communication from policymakers, so that the public can understand their intentions. This will help rebuild public trust in cooperatives,” he said.

Public confidence in KDKMP remains divided, according to a survey Rully conducted shortly before the interview. Some 42.03% of respondents said they were optimistic about the program, while 43% said they were not.

The results indicate that pessimism slightly outweighs optimism, underscoring the need for the government to demonstrate tangible results rather than focus solely on increasing the number of legally established cooperatives.

“People need to be shown evidence that this program can genuinely make all elements of society optimistic about a better future,” Rully said.

He said the program’s success should ultimately be measured by whether cooperatives can run sustainable businesses and contribute meaningfully to local economic activity.

Beyond the cooperative program, Rully said an assessment of the Prabowo-Gibran administration’s first two years should also account for global economic conditions and geopolitical tensions affecting Indonesia.

However, he argued that the government’s response to geopolitical pressures needed improvement, alongside broader issues in economic governance, including monetary and fiscal policy.

“Other countries are also facing global challenges. Why is Indonesia in a somewhat different position, facing such strong pressure? I think the government’s response to geopolitical issues has not been entirely appropriate,” he said.

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