According to Herman Deru 60 Percent of Red and White Cooperation in South Sumatra Are Already Running

PALEMBANG, GEDAHKITA COM—Governor of South Sumatra (Sumsel) H. Herman Deru revealed that the South Sumatra Provincial Government has accelerated the formation of the Red and White Cooperative at the village and sub-district levels. Currently, the progress of the formation of the cooperative has reached 60 percent.

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He conveyed it while attending the Regional Inflation Control Coordination Meeting which was combined with the virtual Socialization of Presidential Instruction (Inpres) Number 9 of 2025 concerning the Acceleration of the Establishment of Red and White Village/Sub-district Cooperatives with the Minister of Home Affairs (Mendagri) M. Tito Karnavian at the South Sumatra Provincial Government Command Center, Monday (19/5/2025) morning.

Spoke to journalist,  Herman Deru explained that the establishment of this small cooperative institute was based on Presidential Instruction Number 9 of 2025 and Presidential Decree (Keppres) Number 9 of 2025 concerning the Task Force (Satgas) for the Acceleration of the Establishment of the Red and White Cooperative.

“In this formation, the Governor acts as the Head of the Task Force for the Acceleration of the Formation of Village and Sub-district Cooperatives. Technically, on the 27th, we will gather all village heads throughout South Sumatra, including sub-district heads, regents, and mayors,” he said.

“In South Sumatra, in principle, the formation of this cooperative has been running. The progress has reached 60 percent,” said Herman Deru.

Meanwhile, Minister of Home Affairs M. Tito Karnavian emphasized that the acceleration of the establishment of the Red and White Cooperative was a direct instruction from President of the Republic of Indonesia Prabowo Subianto. According to him, this cooperative is part of the President’s vision that must be carried out by all regional heads.

“If not implemented, there will be sanctions. The governor and the central government in this case the Minister of Home Affairs, can give a warning to regions that do not implement this national program,” Tito said.

Tito added that his party had issued a circular to regional governments to budget funds through the APBD, especially from the Unexpected Expenditure (BTT) post.

“We continue to encourage local governments to act immediately,” he said.

On the same occasion, Coordinating Minister for Economic Affairs Zulkifli Hasan explained that the establishment of the Red and White Cooperative in the village aims to build an economic chain at the village level. If it runs optimally, this cooperative is estimated to be able to absorb more than 2 million workers.

Zulkifli also said that cooperatives would break the distribution chain which has been too long, and reduce dependence on middlemen, intermediary traders, and loan sharks.

“With this cooperative, the President wants to eliminate the practices of middlemen and loan sharks in the village,” he said.

In addition to discussing cooperatives, the coordination meeting also discussed regional inflation control for April 2025.

Also accompanying the Governor of South Sumatra, Regional Secretary Drs. H. Edward Candra, Assistant II for Economics, Finance, and Development Basyaruddin Akhmad.