Tangerang. Indonesia's Red-and-White Village Cooperative program will integrate microfinance, retail, logistics, and primary healthcare into a single rural service network as the government seeks to expand financial inclusion, strengthen village economies, and reduce reliance on illegal lenders, Cooperatives Minister Ferry Juliantono said on Monday.

The program is designed to provide essential public services while helping rural residents avoid predatory online lenders and loan sharks.

“One of the key functions of the Red-and-White Village Cooperatives is to provide microfinance so that villagers are no longer trapped by illegal online lending platforms and loan sharks,” Ferry said during a visit to the headquarters of B-Universe Media Holdings in Tangerang.

The cooperatives will also operate warehouses and logistics facilities to shorten supply chains and improve the distribution of essential goods.

In addition, each cooperative is expected to operate retail outlets selling daily necessities and primary healthcare clinics integrated with Indonesia's universal health insurance program, BPJS Kesehatan, to improve access to medical services in rural communities.

Ferry said the nationwide network of village cooperatives is expected to help curb urban migration by creating new economic centers in rural areas and generating local employment.

He added that the government views cooperatives as an important pillar in achieving President Prabowo Subianto's target of 8% annual economic growth.

“Under President Prabowo's administration, cooperatives are being encouraged to close the gap with private companies and state-owned enterprises in terms of assets, business scale, and public participation,” Ferry said.

The government is also expanding the scope of cooperatives to allow them to participate in higher value-added sectors, including minerals, crude palm oil, and financial services.

According to Ferry, the broader objective is to accelerate economic growth while promoting more equitable development across Indonesia.

The government plans to establish 80,000 Red-and-White Village Cooperatives during Prabowo's presidency. Each cooperative will receive Rp 3 billion (about $165,700) in government support for facilities and initial working capital, while Rp 83 trillion ($4.6 billion) has been allocated to the program this year.

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