Ministry of Cooperatives Requests Additional Rp5.98 Trillion

The Ministry of Cooperatives (Kemenkop) has proposed an additional budget of Rp5.98 trillion for the 2025 budget ceiling. This budget will be focused on the development of Merah Putih Village Cooperatives (Kopdes).

Specifically, this additional budget is allocated as follows: Rp5.64 trillion for cooperatives and Rp340.92 billion for management support.

If this proposal is approved, the total Kemenkop budget ceiling this year will be Rp6.45 trillion.

"The budget is intended to carry out seven main tasks in accordance with Presidential Instruction Number 9 of 2025, including developing a business model for KDKMP (Red and White Village/Sub-district Cooperatives), establishing 80,000 Village/Sub-district Cooperatives, providing training, and mentoring to strengthen the capacity of Village Cooperatives," said Minister of Cooperatives Budi Arie in a working meeting with Commission VI of the DPR (House of Representatives) on Wednesday (July 9, 2025).

Based on the Presidential Instruction, the additional 2025 budget will be used for:

1. Developing a KDKMP business model, including the institutional relationship scheme between KDKMP and village/sub-district governments and other existing economic institutions in the village/sub-district: Rp500 million

2. Developing modules for the establishment of 80,000 Red and White Village/Sub-district Cooperatives with relevant ministries/institutions: Rp3.90 billion

3. Inventorying existing cooperatives in villages/sub-districts: Rp30.94 billion

4. Providing facilitation, mentoring, education, and training for cooperative human resources: Rp5.10 trillion

5. Providing digital-based cooperative management strengthening to cooperatives in villages/sub-districts to optimize management and service governance: Rp220.36 billion

6. Conducting massive socialization to encourage the formation of 80,000 KDKMPs: Rp163.15 billion

7. Monitoring and evaluating the formation of 80,000 KDKMPs: Rp140.63 billion.

On the same occasion, Budi Arie also proposed an additional budget ceiling for the 2026 fiscal year, increasing it from Rp311.73 billion to Rp7.85 trillion.

These funds will be used for cooperatives (Rp7.34 trillion) and management support (Rp514.12 billion).

"This is a continuation of the major step in building Village Cooperatives as the spearhead of the people's economy," said Budi.