Jakarta, June 19 -- The government-backed Red and White Village Cooperatives could unlock a new source of village revenue if their various business units are run professionally, according to an Institute for Development of Economics and Finance (Indef) economist.

M. Rizal Taufikurahman, head of Indef's Center of Macroeconomics and Finance, said the village cooperatives could boost village economic activity while contributing to village revenue.

This would be achieved through various businesses run by the cooperatives, such as staple goods outlets, fertilizer supply, logistics, as well as savings and loan services.

"Their contribution to village revenue can indeed increase annually. However, the main prerequisite is that the cooperative...