Presidential Instruction Number 17 of 2025 – Acceleration of Physical Development of Outlets, Warehousing and Equipment for Red and White Village/Sub-district Cooperatives

Introduction

Presidential Instruction (Inpres) Number 17 of 2025 serves as a strategic policy foundation to accelerate the strengthening of infrastructure and operational capacity of cooperatives at the village and sub-district levels. This instruction reinforces the follow-up to the formation of Merah Putih Village/Sub-district Cooperatives and encourages the acceleration of building outlets, warehousing, and providing equipment to support cooperative functions, contributing significantly to the welfare of village communities.

This document instructs relevant ministries, agencies, regional governments, and PT Agrinas Pangan Nusantara (Persero) to implement integrated, coordinated, and synchronized steps in the program’s execution.

Background and Objectives

Inpres Number 17 of 2025 was issued in response to the need to accelerate food distribution management, strengthen the added value of local products, and increase the institutional capacity of the village economy. With over 80,000 Merah Putih Village/Sub-district Cooperatives already formed, the government deems it necessary to provide adequate physical infrastructure to allow cooperatives to perform effectively—from product marketing and storage to financial management and logistics.

Scope and Targets

The Inpres covers steps to be taken by various entities, including the Coordinating Minister for Food Affairs, the Minister of Cooperatives, the Minister of Finance, the Minister of Villages and PDTT, and regional heads (Governors and Regents/Mayors). The primary target is the availability of feasible outlets, warehousing, and operational equipment in every cooperative included in the Merah Putih program.

Implementation Mechanism

The implementation is carried out through a coordinated mechanism among stakeholders. First, ministries and local governments are required to take comprehensive steps integrated according to their respective authorities. Second, budgets can be allocated from the State Budget (APBN), Regional Budget (APBD), Village Fund (Dana Desa), and other legitimate sources. Third, PT Agrinas Pangan Nusantara (Persero) is technically assigned as the executor for physical construction, ensuring healthy business practices and labor-intensive schemes.

Funding and Financing Schemes

Funding for the program originates from the national budget, regional budgets, and other non-binding legitimate sources. The Minister of Finance focuses on providing technical budgeting facilitation, including the distribution of General Allocation Funds (DAU) or Revenue Sharing Funds (DBH) to cover program obligations.

Furthermore, the Minister of Finance is requested to facilitate fund placement in State-Owned Banks (Himbara) and Bank Syariah Indonesia as a source of liquidity for PT Agrinas Pangan Nusantara (Persero) with a maximum limit of Rp3,000,000,000.00 per outlet unit and a 6-year tenor. This financing scheme allows for accelerated construction without immediately burdening the village at the start of development.

Roles of Ministries and Regional Governments

The roles are highly detailed in Inpres Number 17 of 2025:

• Coordinating Minister for Food Affairs: Acts as the main coordinator for synchronization and monitoring.
• Minister of Cooperatives: Responsible for mentoring physical construction, setting outlet standards, and handling contractual agreements.
• Minister of Villages and PDTT: Regulates the use of the Village Fund (Dana Desa) for physical development acceleration.
• Minister of Home Affairs: Ensures the availability of regional or village-owned land.
• Regional Heads: Must align the program with regional planning, provide at least 1,000 m² of build-ready land, and facilitate licensing.

Technical Standards and Operational Mentoring

This Inpres mandates the establishment of standardized outlets and warehouses by the Minister of Cooperatives to guarantee uniformity in quality. Mentoring for cooperatives includes management, simple accounting, marketing, and digitalized transactions, ensuring that the facilities effectively boost the economic performance of the cooperative.

Procurement, Contracts, and Governance

To speed up execution, PT Agrinas Pangan Nusantara (Persero) is authorized to carry out construction. Methods used can include self-management or providers using labor-intensive schemes, with the possibility of direct appointment methods. All governance must follow Good Governance principles and anti-corruption regulations.

Risk Mitigation, Security, and Oversight

The Inpres emphasizes the importance of risk mitigation. The Minister of Defense is requested to provide security support in strategic areas. The Attorney General is tasked with providing legal support and civil/administrative assistance. Periodic reporting to the Coordinating Minister for Food Affairs ensures accountability.

Legal Basis and Relevance

As a high-level policy instrument, this Inpres stands as a binding administrative order. Relevant legal frameworks include:

• Regulations on the management of the Village Fund and regional budgeting (DAU/DBH).
• Government procurement laws and LKPP regulations.
• Regulations regarding State-Owned Enterprises (BUMN) and the specific assignment to PT Agrinas.

Expected Economic and Social Impacts

Implementation is projected to:

• Increase market access for local products.
• Reduce post-harvest losses via better warehousing.
• Create jobs through labor-intensive schemes.
• Strengthen local food security through organized distribution.

Challenges and Recommendations

Anticipated challenges include land availability and bureaucratic licensing. Recommendations include utilizing integrated licensing schemes (OSS), digital reporting for transparency, and clear technical standard modules for cooperative managers.

Conclusion and Follow-up

Inpres Number 17 of 2025 is a strategic policy with the potential to transform the village economy. Success depends on cross-sectoral synergy, regional commitment, and active community participation. Strict evaluation is necessary to ensure the program remains effective and accountable according to the law.

Visit the Village Regulations page for official access.