Menkop Budi Arie: Each Red And White Kopdes Profits IDR 1 Billion In The First Year Of Operation

JAKARTA - The Minister of Cooperatives (Menkop), Budi Arie Setiadi, said that every Red and White Village Cooperative (Kopdes) could achieve a minimum profit of IDR 1 billion in the first year since starting operations.

"The Red and White Police Chief can potentially make a profit of at least Rp. 1 billion a year since the first operation," Budi said as quoted from his written statement, Saturday, May 3, 2025.

Budi emphasized that these profits were calculated since cooperatives began operating actively, not when they were founded.

According to him, the projected profit is supported by the role of Kopdes as a distributor of subsidized goods. Budi explained that subsidized goods are public goods. Therefore, it must be distributed by public institutions owned by the community, in this case Kopdes.

"How can it not be profitable, all subsidized goods are sold. Because the essence of goods belonging to public needs must be distributed through public property, namely through the Red and White Kopdes," he said.

He also mentioned that Kopdes is a social character economic institution, with business functions still in favor of the interests of the village community.

Regarding the village's economic potential, Budi said the figure of money circulation in the village currently reaches around Rp. 2,800 trillion per year or around 14 percent of the total national Gross Domestic Product (GDP) which reaches Rp. 20,000 trillion.

Based on that, Budi estimates that the potential for Kopdes turnover can reach Rp. 2,000 trillion per year.

In addition, Budi said Kopdes has the opportunity to move in various sectors, including the village housing sector.

Furthermore, Budi admitted that he had had informal discussions with related parties, but stated that the main focus now is to complete the formation of Kopdes until the end of June.

"This is a social character business institution. For me, the Red and White Kopdes can enter all business sectors in all rural areas of Indonesia. Including, housing development for rural communities must go through the Red and White Kopdes," he said.

Later, the Red and White Kopdes will get access to loans from Himbara with a ceiling of up to IDR 5 billion.

The State Revenue and Expenditure Budget (APBN) will act as a guarantor in the event of bad credit.