Jakarta. Cooperatives Minister Ferry Juliantono said President Prabowo Subianto has tasked his ministry with accelerating the development of Merah Putih Village Cooperatives as part of Indonesia’s new economic order.

Speaking at the Investor Daily Summit (IDS) 2025 at the Jakarta Convention Center (JCC) on Wednesday, Ferry stressed that the initiative aims to strengthen the role of cooperatives as a key pillar of the national economy.

“President Prabowo instructed us to ensure that cooperatives can catch up with state-owned enterprises (SOEs) and the private sector,” Ferry said. “For decades, cooperatives have lagged behind in terms of assets, business volume, and community participation.”

Ferry said the president sees cooperatives as an essential foundation of Indonesia’s economy, consistent with the constitutional mandate under Article 33 of the 1945 Constitution, which outlines economic democracy based on mutual cooperation and solidarity.

“We don’t intend to pit cooperatives against SOEs or private companies,” he added. “But our founding fathers envisioned equality among all three as pillars of the national economy.”

To realize that vision, President Prabowo earlier this year led a cabinet meeting outlining plans to establish 80,000 Merah Putih cooperatives across villages and subdistricts nationwide. The program, formalized through a Presidential Instruction and Presidential Regulation (Perpres) No. 9/2025, also established a special task force involving over 18 ministries and government agencies, as well as all local governments.

As of July 2025, more than 81,000 cooperatives have been legally established under the initiative, Ferry said. These cooperatives are expected to help boost rural independence, create jobs, and promote equitable economic growth.

“This is a heavy but noble mandate,” Ferry said. “We’re working to strengthen the cooperative movement as a true reflection of the Constitution and the ideals of our nation’s founders.”