The Koperasi Desa Merah Putih program aims to launch in 40,000 villages with Rp3 billion in potential loan funding per unit.
Data shows significant disparities in cooperative activity, with many rural areas struggling compared to those in Java.
Infrastructure readiness is a concern, as only 31% of the planned cooperative units were fully built by June 2026.
High poverty rates correlate with lower transaction activity, raising fears of widespread loan defaults and economic waste.