Background. This study aims to analyze the effect of exercise and learning therapy on the cognitive functions and daily physical activities of older people with dementia in Indonesia. Methods. This was an experimental study with a pretest-posttest design and a control group. Samples were selected using nonrandom sampling methods and were then randomly assigned to intervention and control groups. The study population was older people with mild-to-moderate dementia, and the sample number was 90 people. The intervention group received an Indonesian physical exercise program for older people and reading therapy through 12 sessions over four weeks. The intervention was led by a community health volunteer who has been trained and certified. Results. The mean score for cognitive function in the intervention group showed significant increase between pre- and postintervention, with p  value < 0. 001 , and there was no significant difference in the control group before and after intervention, with a p  value of 0. 198 . Further, the Mann–Whitney test showed that there were significant differences in the mean scores for cognitive function between the intervention and control groups with p  value < 0. 001 and a 95% confidence level. Conclusion. Based on the results, the Indonesian older people exercise program and reading aloud activity had a positive effect on the cognitive function of older people with dementia.