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The Main Cause of Village Cooperative Units’ Failure

Monday, April 28, 2025

Red-and-White Village Cooperatives have the risk of repeating the failure of village cooperative units, even on a greater scale of losses.

arsip tempo : 176320616722.

A Village Unit Cooperative (KUD) in Panggung Village, Gunung Kidul, Yogyakarta, 1986. Dok. Tempo/Yuyuk Sugarman. tempo : 176320616722.

THE Red-and-White Village Cooperatives bear a resemblance to the village cooperative units (KUD) established by the New Order government five decades ago. Both aim to drive the rural economy. However, the establishment of 80,000 Red-and-White Village Cooperatives, initiated by President Prabowo Subianto and requiring Rp400 trillion (around US$23.8 billion) in funding, risks repeating the failures once experienced by the KUDs.

“The chaotic

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Ghoida Rahmah contributed to the writing of this article.
 

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