Jakarta (ANTARA) - Indonesia's Minister of Villages and Disadvantaged Regions Development Yandri Susanto said villages became the main subject of development over the two years of President Prabowo Subianto's leadership.
"Mr. Prabowo literally said to build from the village, which no previous president has done, and villages have usually been made objects, not subjects," Susanto said as quoted here on Tuesday.
As the subject of development, he continued, President Prabowo introduced policies to build from the village to promote economic equity and poverty eradication.
Susanto then said the development direction is contained in the 6th Asta Cita, one of the government's eight development missions, emphasizing development from villages and the bottom up to realize economic equity.
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He explained one instrument to carry out the policy is the Red and White Village Cooperatives (KDMP), which are directed at strengthening the community economy while ensuring villagers can enjoy subsidized goods.
According to Susanto, the cooperatives are also designed to run alongside Village-Owned Enterprises (BUMDes) through a division of business areas so the two strengthen each other and do not overlap.
BUMDes will focus on business development, such as export villages, tourism villages, and thematic villages. Meanwhile, the cooperatives are directed to be a means of ensuring people get access to subsidized goods.
He cited subsidized liquefied petroleum gas (LPG), which is still found priced at Rp24,000 to Rp30,000 in several places. Through the cooperatives, however, the LPG price is expected to be around Rp16,000 to Rp18,000.
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Susanto also said the government has designed KDMP so their economic benefits return to village communities.
The cooperatives' assets, he said, will later fully belong to the village, with residual business income (SHU) split 20 percent for village own-source revenue and 80 percent for cooperative members.
He added that the cooperatives are formed through special village deliberations involving village heads, the Village Consultative Body (BPD), and community figures.
Based on data presented by Susanto, of the target of 80,000 cooperatives, around 35,000 are targeted to finish construction by the end of October 2026, while around 10,000 cooperatives are already operating.
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Translator: Tri, Kenzu
Editor: Fransiska Ninditya
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