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View all search resultsUncertainty at grassroots over Red and White co-ops
Uncertainty surrounds the rollout of the Red and White Cooperatives (KMP) program as village cooperative managers grapple with changing regulations and unclear funding.
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An employee arranges rice products for sale on Jan. 22, 2026, at an outlet under the Red and White Cooperatives program in Metuk village, Boyolali regency, Central Java. (Antara/Aloysius Jarot Nugroho)
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ncertainty surrounds the rollout of the Red and White Cooperatives (KMP) program as village cooperative managers grapple with changing regulations and unclear funding.
The program’s implementation in the field “is far from what the central government expects”, said Dedi Nurendi, chairman of the Cileunyi Wetan cooperative in West Java.
Speaking to The Jakarta Post on Friday, Dedi explained that the cooperative was keeping afloat by its partnership with a savings and loans cooperative (KSP) in the same village, rather than through loans of up to Rp 3 billion (US$178,335) meant to be offered to each cooperative by state-owned banks.
“We have been supported by KSP Citra Mandiri Jabar, amounting to Rp 2 billion [in capital]. Meanwhile, many of the KDMP (Red and White Rural Cooperatives) units have yet to start operating, because they have no funding support,” he said.
Dedi added that the cooperative had questions about the government-backed financing: “We have no clear understanding of the funding [scheme], whether it will come in the form of cash or goods. It remains unclear”.
He said the Indonesian Military (TNI) was heavily involved in building the cooperatives, suggesting it had been tasked with managing funds and handling procurement processes, alongside state-owned agriculture holding company PT Agrinas, which has been designated as the government’s vehicle for implementing the cooperative program.
Despite the lack of clarity, Dedi said the program marked a “huge leap forward” in that it provided access to a greater range of subsidized products and allowed cooperatives to procure more goods from state-owned enterprises (SOEs) like the State Logistics Agency (Bulog) and food holding company ID Food.
