Indonesia pledges economic empowerment through village cooperatives on Independence Day
Minister of Cooperatives Ferry Juliantono reaffirmed the government's commitment to economic independence for all citizens during Indonesia's 81st Independence Day ceremony, highlighting the Red and White Village Cooperative program as a key tool for achieving social and economic equality.
Govt to enfranchise its citizens economically: Minister
Indonesia's Minister of Cooperatives Ferry Juliantono pledged state intervention to support citizens facing economic hardship during the 81st Independence Day ceremony held under the theme 'A Sovereign, Just and Prosperous Indonesia' at Merdeka Palace on Monday.
Speaking at the national ceremony led by President Prabowo Subianto, who took office in October 2024 after securing 58.6 percent of the vote in February elections, Juliantono emphasized the government's determination to deliver genuine independence to those not yet economically and socially empowered.
The minister, who was promoted from deputy minister to lead the Cooperatives Ministry in September 2025, framed Independence Day as a mandate to advance the founding fathers' vision following Indonesia's declaration of independence from Dutch colonial rule on August 17, 1945.
Red and White Village Cooperatives drive rural development
Juliantono highlighted his ministry's central role in ensuring citizens experience the tangible benefits of independence, particularly through economic frameworks at the village level. The Red and White Village Cooperative program, established under Presidential Directive No. 9 of 2025, targets 80,000 cooperatives nationwide to strengthen food self-sufficiency and rural economic development.
As of July 2026, Indonesia had completed 15,845 cooperatives with full infrastructure, while approximately 83,000 had finalized their legal incorporation. The government aims to have 40,000 operational by year's end.
These cooperatives function as comprehensive socio-economic service centers, offering savings and credit facilities, essential goods stores, agricultural warehouses, logistics centers, pharmacies, clinics, and distribution of fertilizers and liquefied petroleum gas. The program serves dual purposes: distributing subsidized goods and aid while acting as an offtaker for local agricultural products.
Breaking cycles of predatory lending
A core objective of the initiative is protecting village communities from moneylenders, middlemen, and online loan schemes that perpetuate rural poverty. By providing access to savings and loan units, the cooperatives aim to dismantle exploitative financial practices and improve access to fair credit.
Juliantono expressed confidence that with public support, the ministry can achieve true independence for all Indonesians, stating the government will ensure justice and prosperity reach every citizen.
The minister also offered condolences to victims of the magnitude 7.7 earthquake that struck off Flores Island in East Nusa Tenggara on August 15, killing at least 69 people, injuring 331 others, and displacing approximately 5,000 residents. The disaster, which triggered tsunamis, occurred just two days before the Independence Day ceremony.