Indonesia Invests $80 Million in “Red and White Fishing Villages” to Boost Coastal Economies
Table of Contents
Indonesia is embarking on a major initiative to unlock the potential of its vast maritime resources and improve the livelihoods of its fishing communities with the launch of “red and White fishing Villages,” known locally as KNMPs. The program, formalized through a ministerial decree issued in 2025, represents a significant investment in coastal infrastructure and cooperative development.
The archipelago nation,home to the world’s largest expanse of marine territory,has long sought to maximize the economic benefits derived from its waters. According to government officials, the primary goal of the KNMP program is to enhance the welfare of fishers and contribute to national food security.
First Phase Targets 65 Villages with $80 Million Investment
In its initial phase, the Ministry of Marine Affairs and Fisheries (KKP) plans to construct 65 KNMPs across the country, allocating Rp1.34 trillion (approximately US$80.1 million) to the project. Construction is slated to begin in mid-October 2025. The initiative aims to address longstanding challenges faced by Indonesian fishers, including limited access to modern facilities and market inefficiencies.
West Sumatra to Pilot Two Key KNMPs
The province of West Sumatra will be among the first to benefit from the program, with two KNMPs planned for development in Katapiang Village, Padang pariaman District, and Padang Sarai Village, Padang City. These locations were selected based on their rich marine biodiversity and the potential to considerably impact local economies.
The Katapiang KNMP, for example, will serve fishers from the surrounding areas, providing essential infrastructure such as cold storage, processing facilities, and marketing support.Key catches in the Koto Tangah waters include anchovies,skipjack tuna,and mackerel tuna.
Long-Term Vision: 1,000 – and Potentially 3,000 – KNMPs Nationwide
The KKP has ambitious long-term goals for the KNMP program.”We are targeting to establish 1,000 KNMPs initially,” stated Trian Yunanda, Expert Staff for Economic, Social, and Cultural Affairs at the ministry, “and if the program proves successful, we could potentially scale up to 3,000.” this expansion aligns with President Prabowo Subianto’s administration’s “Asta Cita” missions,focusing on food self-sufficiency,job creation,and rural development.
A key challenge facing Indonesian fishers has been the lack of adequate ice availability, leading to rapid spoilage and reduced sales.To address this, the ministry will establish ice plants utilizing an ice slurry system, leveraging saltwater to provide a cost-effective and enduring solution.
Red and White Village Cooperatives to Drive Downstream Processing
The success of the KNMPs is inextricably linked to the integration of “Red and White Village Cooperatives.” These cooperatives will be responsible for directly managing the fishers’ catch, facilitating downstream processing, and ensuring fair market access. The government believes this integrated approach will significantly improve the economic well-being of coastal communities.
Rio Eka Putra, Head of the Red and White Village Cooperative in Katapiang Village, expressed enthusiasm for the KNMP initiative, anticipating a positive impact on the local economy. Endrizal, Head of the Cooperatives and SMEs office of West Sumatra, affirmed the provincial government’s commitment to optimizing fishers’ catches through the cooperatives across districts and cities, including West Pasaman, Agam, South Pesisir, Mentawai Islands, and Pariaman City.
With 1,265 Red and White Village Cooperatives already established in West Sumatra, and 20 percent focused on lobster, crab, fish, and swimming crab, the province is well-positioned to capitalize on the KNMP program. Endrizal expressed confidence that fully optimizing the region’s marine potential could help achieve President Subianto’s eight percent economic growth target.
The establishment of KNMPs,coupled with the strength of the Red and White Village Cooperatives,offers a renewed sense of hope for equitable economic growth in Indonesia’s coastal regions,promising to alleviate poverty and strengthen the rural economy for generations to come.
