Financing and markets for village businesses
Susanto spoke after attending the Exhibition of Ideas and Business Models for Blue Economy Development Innovation in Villages and Underdeveloped Areas with Blue Innovative Startup Acceleration (BISA). He urged participants to use their existing networks and said his ministry was working to link Red and White Village Cooperatives with village-owned enterprises.
The two types of organizations could draw on different sources of financing, he said. "It is very easy for village cooperatives to get capital now, without collateral, at very low interest rates. Village-owned enterprises can also be supported by village funds for their capital," he said.
Susanto said he had directed ministry staff to develop the technical arrangements for that cooperation. Support needed to cover the full process, from production through sales, so that a lack of capital or difficulty finding buyers would not hold back village businesses.
The minister also tied the effort to community empowerment. "If we have the products and the technology, but the village communities are not empowered, there will be no sustainability," he said. He hoped cooperation among village enterprises and cooperatives, alongside effective use of village funds, would generate coastal jobs, raise village incomes and strengthen long-term economic resilience.
The scale of coastal development needs was another theme of his remarks. According to ANTARA News, Susanto said Indonesia has 75,265 villages, with around 20 percent, or nearly 16,000, in coastal areas. Nearly 30 percent of those coastal villages remained classified as underdeveloped.
BISA innovations and support for implementation
At the exhibition, Susanto highlighted a project in Larantuka, East Nusa Tenggara, that processes fish heads into biostimulants for plants and soil. Fish heads are often discarded as waste. He said mentoring and empowerment were needed to help remote villages replicate such innovations.
The exhibition was part of BISA, a program launched on January 14, 2025, by the Archipelagic and Island States (AIS) Forum, which is administered by UNDP Indonesia. According to UNDP Indonesia, the launch involved a partnership with the British Embassy Jakarta's UK-Indonesia Tech Hub and support from the Indonesian government.
BISA targets 100 innovative startups, 100 community-based organizations and 500 university students. Its seven focus areas are fisheries and aquaculture; marine biodiversity conservation; marine and water tourism; renewable marine infrastructure and energy; marine biotechnology; marine debris and coastal waste management; and blue carbon.
Earlier, at BISA's July 1, 2025, Demo Day, ten Synergy Groups presented solutions ready for deployment after completing three months of training, UNDP Indonesia reported. Participants came from across Indonesia, including Bontang in West Kalimantan, Takalar in South Sulawesi, Anambas in the Riau Islands and Larantuka in East Nusa Tenggara.
A selection panel included representatives of the Indonesian and UK governments, state-owned enterprises and impact investors. Five groups were to receive grants to put their solutions into practice in selected coastal areas.
Cooperative launch followed the exhibition
The Red and White Village Cooperatives, known as Koperasi Desa/Kelurahan Merah Putih, were officially launched five days after Susanto's remarks. President Prabowo Subianto led the July 21, 2025, launch in Bentangan Village, Klaten, Central Java.
At that event, Coordinating Minister for Food Affairs Zulkifli Hasan said 80,081 cooperative units had been legally established, but only 108 were operational, ANTARA News reported. He set a three-month target for bringing all of the cooperatives into full operation.
