Socio Today
The Indonesian Food and Drug Authority, known as Badan Pengawas Obat dan Makanan (BPOM), has officially announced a comprehensive support package for the Red and White Village/Sub-district Cooperative Program, locally known as Koperasi Desa/Kelurahan Merah Putih (KDKMP). This strategic initiative, designed to revitalize the grassroots economy, involves a multifaceted approach from the regulatory body, including the acceleration of licensing for food and medicinal products, intensive mentorship for Micro, Small, and Medium Enterprises (MSMEs), rigorous quality control, and the stabilization of pharmaceutical supply chains in rural areas. The commitment was solidified following a high-level limited cabinet meeting led by President Prabowo Subianto at the Presidential Palace Complex in Jakarta, where the administration’s focus on rural development and economic sovereignty was reaffirmed.
The Head of BPOM, Taruna Ikrar, emphasized that the agency’s primary role is to act as an enabler for village-level economic entities, ensuring that the transition toward a more decentralized economy does not compromise public health standards. By streamlining the bureaucracy associated with product registration and safety certification, BPOM aims to remove the traditional hurdles that have historically prevented village-produced goods from entering formal markets. The KDKMP program is not merely a social initiative but a cornerstone of the national economic strategy to empower the estimated 75,000 villages across the Indonesian archipelago.
Strategic Alignment with Presidential Instructions
The legal foundation for this massive undertaking is rooted in Presidential Instruction (Inpres) Number 9 of 2025, which mandates the expedited formation and operationalization of Red and White Village Cooperatives. Under this decree, BPOM is tasked with providing technical oversight and administrative ease for several vital KDKMP units. These include village clinics, village-owned pharmacies (apotek desa), cold storage facilities for packaged food products, and retail outlets for essential goods. The integration of BPOM’s regulatory framework into the village cooperative model ensures that products circulating in rural areas meet the same safety and efficacy standards as those in major urban centers.
Taruna Ikrar noted that the support for "Koperasi Merah Putih" is a direct response to the President’s vision of achieving food and energy self-sufficiency while narrowing the inequality gap between urban and rural populations. By facilitating the establishment of village pharmacies and clinics, BPOM helps create a decentralized healthcare network where medicine is not only available but also strictly monitored for quality. This is particularly crucial in preventing the circulation of counterfeit or substandard drugs in remote regions, a challenge that has persisted due to fragmented distribution networks.
Legal Framework and Regulatory Safeguards
To provide a robust legal basis for these interventions, BPOM has enacted several key regulations that bridge the gap between national standards and village-level capabilities. One of the primary instruments is BPOM Regulation Number 5 of 2026, which specifically governs the Management of Drugs and Drug Materials in Pharmaceutical Service Facilities. This regulation provides the necessary guidelines for village pharmacies to operate legally, detailing how over-the-counter (OTC) and limited over-the-counter medicines should be stored, handled, and dispensed.
Furthermore, BPOM Regulation Number 21 of 2021 remains a critical pillar, focusing on the Implementation of Food Safety and Quality Assurance Systems in Distribution Facilities. This regulation is particularly relevant for the KDKMP’s "cold storage" and warehousing initiatives. As cooperatives begin to handle packaged food and perishable goods, the implementation of the Good Distribution Practices for Processed Food (CPerPOB) and the Processed Food Safety Management System (SMKPO) becomes mandatory. BPOM’s role involves mentoring cooperative members to adopt these systems, ensuring that the "farm-to-fork" safety chain remains unbroken even at the village level.
Empowering Rural MSMEs through Mentorship and Licensing
A significant portion of the KDKMP’s success depends on the ability of village-based MSMEs to scale their production. Historically, many rural entrepreneurs have struggled with the technical requirements of obtaining a Marketing Authorization Number (Nomor Izin Edar or NIE). To address this, BPOM has shifted from a purely "policing" role to a "consultative" one. The agency now provides onsite visits and "desk consultations" where experts guide small business owners through the complexities of Good Manufacturing Practices (GMP).
In 2025, BPOM successfully conducted pilot mentorship programs in six strategic locations: Banjarbaru, Surakarta, Medan, Kupang, Fakfak, and Surabaya. These locations were chosen to represent the diverse geographical and economic landscapes of Indonesia, from the industrial hubs of Java to the developing frontiers of Papua and East Nusa Tenggara. As a result of this intensive assistance, BPOM issued 19 new marketing authorization numbers specifically for traditional medicines (Obat Bahan Alam) and cosmetic products produced by village-level enterprises.
As of mid-2026, BPOM reports a staggering total of 654,921 registered drug and food products nationwide. The agency’s goal is to significantly increase the percentage of these registrations originating from village cooperatives. By digitizing the registration process through an enhanced electronic system, BPOM has reduced the time required for evaluation, making it easier for rural entrepreneurs to compete in the national market.
Integration with BUMDes and the Village Ecosystem
The Red and White Village Cooperative Program does not operate in a vacuum. According to Minister of Villages and Development of Disadvantaged Regions, Yandri Susanto, the KDKMP is designed to work in synergy with Village-Owned Enterprises (BUMDes). While BUMDes often focus on infrastructure and resource management, the KDKMP serves as the commercial vehicle that absorbs and markets the products created by the villagers.
This synergy creates a closed-loop economy within the village. For example, a village cooperative can act as an "off-taker" for local farmers’ harvests, process them into packaged goods using BPOM-certified methods, and then sell them through the cooperative’s own retail outlets or distribute them to other regions. This model ensures that the added value of the products remains within the community, rather than being siphoned off by middle-men or large urban corporations.
BPOM’s involvement ensures that these locally processed products are "legal, safe, and of high quality." This certification is the "golden ticket" required for village products to enter modern retail chains and export markets. Without BPOM’s seal of approval, even the highest quality village product remains confined to informal local markets, limiting its economic potential.
Chronology of the KDKMP Implementation
The roadmap for the KDKMP began shortly after the inauguration of the current administration, which placed a heavy emphasis on "downstreaming" (hilirisasi) not just in the mining sector, but also in agriculture and rural industries.
- Late 2024: The concept of the "Red and White" cooperatives was drafted as part of the National Long-Term Development Plan.
- Early 2025: President Prabowo issued Inpres No. 9 of 2025, providing the executive mandate for all ministries and agencies to support village cooperatives.
- Mid-2025: BPOM launched its pilot mentorship programs in six cities, focusing on identifying the specific hurdles faced by rural MSMEs.
- Early 2026: BPOM Regulation No. 5 of 2026 was enacted to provide the legal framework for village pharmacies, a move seen as vital for improving rural health indices.
- July 2026: The Limited Cabinet Meeting at the Palace confirmed the expansion of the program, with BPOM pledging full support for the nationwide rollout.
Economic and Social Implications: A Fact-Based Analysis
The implications of BPOM’s support for the KDKMP are far-reaching. Economically, the acceleration of licensing is expected to boost the contribution of the "village economy" to the national GDP. With over 60% of Indonesia’s GDP currently driven by MSMEs, a more formal and certified rural sector could add several percentage points to national growth. Furthermore, by ensuring that village pharmacies have a steady supply of safe and affordable medicine, the government is tackling one of the core issues of rural poverty: the high cost of healthcare and the loss of productivity due to illness.
From a public health perspective, BPOM’s oversight reduces the risk of foodborne illnesses and drug-related complications in areas where healthcare infrastructure is traditionally weak. The "cold storage" initiatives, in particular, are a game-changer for food security. In an archipelagic nation like Indonesia, post-harvest losses are high due to poor storage. By certifying and supervising village-level cold storage, BPOM helps ensure that food remains safe for consumption longer, stabilizing prices and reducing waste.
Moreover, the focus on "Obat Bahan Alam" (Natural Medicines) taps into Indonesia’s rich biodiversity. By helping village cooperatives standardize and certify traditional herbal remedies, BPOM is helping to transform indigenous knowledge into a formal industry. This not only preserves cultural heritage but also creates a unique niche for Indonesian products in the global "wellness" market.
Conclusion and Future Outlook
The Red and White Village Cooperative Program represents a paradigm shift in how Indonesia approaches rural development. It moves away from a "grant-based" model to a "production-based" model, where villages are encouraged to become self-reliant economic hubs. BPOM’s role as a mentor and regulator is essential to this transition. By ensuring that village products meet national and international standards, the agency is providing the necessary foundation for sustainable growth.
As the program moves into its next phase, the focus will likely shift toward further digitalization and the expansion of the "green economy" within villages. Taruna Ikrar and his team at BPOM have signaled that they will continue to refine their electronic registration systems and expand their onsite mentorship reach. The success of the KDKMP will ultimately be measured by the number of village products that become household names in Indonesia and beyond, proving that with the right regulatory support, the heart of Indonesia’s economy truly lies in its villages.
