Indonesian Association Urges Village Cooperatives to Collaborate with Industrial Programs

The Indonesian Bumiputera Nusantara Indonesia Entrepreneurs Association (Asprindo) is advocating for a collaboration between the Koperasi Desa Merah Putih (KDMP) and the Kampung Industri (Industrial Village) program. Asprindo believes this partnership is crucial for transforming villages from mere distribution hubs into centers capable of developing production activities based on local potential.

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Physical infrastructure is needed, but it should not be the main measure of success. What is important is that KDMP can enable villages to process their own economic wealth.

Abdullah Rasyid, Head of the Agriculture and Agribusiness Department at Asprindo's Central Leadership Council, emphasized that while KDMP provides a broad institutional network for village economies, success should not be measured solely by physical infrastructure. "Physical infrastructure is needed, but it should not be the main measure of success. What is important is that KDMP can enable villages to process their own economic wealth," Rasyid stated in Jakarta on Friday, August 7, 2026.

Asprindo's Kampung Industri program focuses on building a production ecosystem that connects raw materials, technology, human resources, processing, packaging, and market access. Rasyid explained that many of Indonesia's superior commodities, such as coffee, cocoa, and fish, are still sold as raw materials, preventing local communities from fully benefiting from their economic value. "Rural development needs to move from commodity orientation to product orientation. Villages are not enough to just produce. Villages must be able to process," he urged.

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Rural development needs to move from commodity orientation to product orientation. Villages are not enough to just produce. Villages must be able to process.

Through this collaboration, KDMP could expand its role beyond facilitating transactions and providing savings and loan services. It could become involved in processing, quality standardization, packaging, branding, distribution, and market expansion. This model also presents opportunities for young people to build businesses in their villages, potentially reducing the migration to cities in search of economic prospects. Rasyid noted that young people often leave villages not due to a lack of love for their homeland, but because they don't see a promising economic future. Bringing production centers, technology, markets, and business opportunities to rural areas could make staying a viable option.

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Many young people leave villages not due to a lack of love for their homeland. They leave because they do not see a promising economic future. When production centers, technology, markets, and business opportunities are present in the regions, moving to the city is no longer the only option.