Indonesia Accelerates Village Development – Building a More Equitable Economy
The Indonesian government has launched an ambitious program aimed at creating an economic model that relies not only on major cities but also on the more than 80,000 villages across the country. Leaders believe that true economic balance and social fairness can only be achieved if rural development is prioritized.
To support this vision, the government has introduced a new wave of development initiatives focusing on strengthening village-based economies.
Why Is Indonesia Focusing on Villages?
Indonesia is one of Southeast Asia’s fastest-growing economies, yet social inequality remains significant.
According to national statistics:
- 23.85 million people live in poverty,
- including 2.38 million in extreme poverty,
- and nearly half of this poverty is concentrated in rural areas.
The government believes that meaningful and sustainable economic change must start “from the bottom up,” meaning that rural populations must gain access to growth opportunities—not just those living in major urban centers.
The “Asta Cita” Mission – Development Starting from Rural Areas
These initiatives are part of President Prabowo Subianto’s Asta Cita program, one of its core missions being:
“Developing Indonesia from rural areas to build an equitable economy.”
This mission encompasses multiple strategic areas:
- infrastructure development
- modernization of agricultural production
- human capital development
- strengthening local value chains
- expansion of the cooperative system
Village Cooperatives: The New Engines of Growth
One of the most notable elements of the program is the expansion of the Red and White Village Cooperatives (KDMP) network.
This network includes over 82,000 village cooperatives, with more being added every year.
These cooperatives support local economies by providing:
- grocery stores
- pharmacies
- health clinics
- storage and warehousing
- logistics services
The goal is for villages not only to meet their basic needs but to produce marketable goods as well.
The Role of Education
Educational institutions, including Islamic boarding schools, are also contributing by assisting in processing agricultural products, creating handicrafts, and providing entrepreneurship training.
Long-Term Vision
Strengthening villages will help:
- reduce pressure on overcrowded cities
- create new job opportunities in rural areas
- encourage young people to stay in their communities
This lays the foundation for a more balanced and sustainable national economy.