The Red and White Village/Sub-district Cooperatives (Koperasi Desa/Kelurahan Merah Putih – KDKMP), also known as Kopdes Merah Putih, are set to recruit social assistance beneficiaries as operational workers. This initiative represents a significant step towards the economic empowerment of Beneficiary Families (KPM) enrolled in the Conditional Cash Transfer Program (Program Keluarga Harapan – PKH).
According to Minister of Cooperatives, Ferry Juliantono, this ambitious scheme aims to absorb up to 1.4 million workers from PKH Beneficiary Families if successfully implemented across approximately 80,000 Kopdes Merah Putih units. “Each cooperative will create job opportunities for 15 to 18 PKH Beneficiary Families. If this operates in 80,000 cooperatives, it could absorb nearly 1.4 million workers,” Ferry stated during a press conference at the Ministry of Cooperatives office in South Jakarta on Monday (13/4).
He emphasized that involving KPM members as both workers and cooperative members is expected to significantly boost their incomes. This improved financial standing is crucial for KPM to transcend the poverty line, particularly those in the first and second decile groups, fostering sustainable economic upliftment.
Prioritizing Productive Age KPM from Decile 1–4
On the same occasion, Minister of Social Affairs, Saifullah Yusuf, widely known as Gus Ipul, clarified that not all Beneficiary Families will be immediately recruited as workers. The government will strategically prioritize productive-age KPM members who fall within the first to fourth decile groups for these new roles. “Workers will naturally be prioritized based on their productive age and capacity. There will be subsequent mapping and training tailored to specific needs, such as for drivers, cashiers, or warehouse personnel,” Gus Ipul explained.
Nevertheless, all KPM are strongly encouraged to become cooperative members as an integral part of this empowerment program. Gus Ipul described this scheme as a continuous journey, transforming social assistance recipients into economically self-sufficient individuals, ultimately fostering long-term financial independence.
Affordable Contributions, Payable from Social Assistance
Gus Ipul also mentioned that the government is actively reviewing cooperative membership schemes to ensure they are not burdensome for KPM. The basic deposit is being designed to be as low as possible and can be paid in installments, making it highly accessible. He estimated that the monthly mandatory contribution would range only from Rp 5,000 to Rp 10,000. Significantly, the government is even exploring options for these contributions to be paid directly from the social assistance received by KPM. “This functions like a savings account. At the end of the year, they will also receive a share of the business surplus,” he elaborated.
The Ministry of Cooperatives further plans to issue specific regulations to streamline the process for KPM to become cooperative members, including provisions for basic deposit installment plans, reinforcing the program’s commitment to inclusivity and ease of access.
Thousands of Kopdes Units Already Established
Vice Minister of Cooperatives, Farida Farichah, revealed that the establishment of Kopdes Merah Putih is progressing steadily. Currently, approximately 4,741 cooperative units have been completed, with another 34,608 still under development. “The completed units will be progressively equipped with facilities and infrastructure, including operational tools,” Farida stated, highlighting the ongoing preparations for their full functionality.
She added that the manpower requirements for each cooperative are still being finalized, pending alignment with KPM data from the Ministry of Social Affairs. The Kopdes Merah Putih program is a direct implementation of Presidential Instructions No. 8 and No. 9 of 2025, which address poverty alleviation and the formation of village cooperatives. The government harbors strong hopes that this program will serve as a tangible mechanism for KPM to “level up” and achieve greater economic stability.
Through employment and supplementary income from these cooperatives, KPM are expected to transition away from dependency on social assistance. “This is the process: from receiving social assistance, then being empowered, and finally leveling up to become self-reliant,” Gus Ipul concluded, encapsulating the transformative vision behind this nationwide initiative.
Summary
The Kopdes Merah Putih (Red and White Village/Sub-district Cooperatives) program aims to economically empower beneficiaries of the Conditional Cash Transfer Program (PKH) by recruiting them as operational workers. This initiative intends to absorb up to 1.4 million workers from PKH Beneficiary Families across approximately 80,000 cooperative units, with each unit creating 15 to 18 job opportunities. The goal is to boost their incomes, helping them transcend the poverty line and achieve sustainable economic upliftment.
The program will prioritize productive-age KPM from the first to fourth decile groups for recruitment, while all KPM are encouraged to become cooperative members. Membership contributions are designed to be affordable, ranging from Rp 5,000 to Rp 10,000 monthly, potentially payable from social assistance, and include a share of the business surplus. Currently, thousands of Kopdes units are established or under development, reflecting a national effort to transition KPM from social assistance dependency to self-reliance through employment and economic participation.