Each village cooperative costs Rp2.5 billion to build: minister

Jakarta (ANTARA) – Cooperatives Minister Ferry Juliantono stated that the estimated budget for constructing each Red and White Village Cooperative is approximately Rp2.5 billion (approximately US$150,000). “That covers the physical construction, equipment, supporting facilities, and operational vehicles. It’s relatively affordable—below the average cost,” he said here on Thursday.As of now, infrastructure development is underway at 7,923 sites across Indonesia. All locations have secured financing from state-owned banks, with each cooperative eligible for loans up to Rp3 billion (approximately US$180,000). “A portion of the loan is allocated for physical investment, while the remainder is designated for working capital,” Juliantono explained.Each cooperative will house seven essential service units: a food store, clinic, pharmacy, administrative office, savings and loan service, warehouse, and logistics hub. The financing is channeled through PT Agrinas Pangan Nusantara (Persero), the state-owned enterprise appointed to carry out construction.“The first disbursement, nearly Rp600 billion (around US$35.9 million), has already been released by Agrinas to field contractors as a down payment,” he added.The government aims to accelerate progress rapidly. By November, land data is expected to reach 40,000 plots, with 20,000 sites entering the construction phase.In December, an additional 40,000–50,000 sites are projected to begin construction, bringing the total inventoried land to around 80,000 plots.All physical infrastructure is targeted for completion by March 2026, as part of a national effort to strengthen rural economies and food distribution systems.Indonesia’s Red and White Village Cooperatives program is a nationwide initiative launched in 2025 to revitalize rural economies through inclusive, community-based enterprises.The Red and White Village/Sub-District Cooperative was introduced by the administration of President Prabowo Subianto during the 78th Cooperative Day celebration. The program aims to establish 80,000 cooperatives across villages and sub-districts in Indonesia, positioning them as strategic drivers of local economic growth, food security, and community resilience.