By: Sadena Devi
The Indonesian government continues to demonstrate its commitment to achieving sustainable economic growth by prioritizing food self-sufficiency as one of its main pillars. This strategic initiative is not only aimed at fulfilling the basic needs of the population, but also serves as a crucial tool for strengthening a people-based national economy. Through the national program outlined in Presidential Instruction No. 9 of 2025, the government is promoting the establishment of the Merah Putih Village/Urban Cooperatives (KMP) as a vehicle to create economic independence in rural areas while supporting national food security.
The ambitious plan to build 80,000 cooperatives across Indonesia is more than just a numerical target—it reflects a long-term vision to expand the country’s food production base and reduce reliance on imports. By bringing production hubs closer to rural communities, Indonesia is being steered toward optimizing its natural resources at the local level, creating a resilient and efficient supply chain, and protecting itself from global market shocks. Food security built through cooperatives will pave the way for a new, inclusive economic ecosystem that empowers villages as the main drivers of development.
In West Sumatra, the KMP program has already been implemented in concrete ways. The head of the West Sumatra Cooperative Agency, Endrizal, reported that more than a thousand cooperatives are currently being established across villages and nagari (traditional communities). He views cooperatives as the main engine of a people-based economy, one that must be managed through strong synergy between local governments and the private sector. According to Endrizal, the biggest challenge lies not in establishing cooperatives, but in managing and sustaining them in the long term. For this reason, the involvement of experienced business actors as mentors is seen as a critical part of the strategy.
This emphasis on collaboration among cooperative managers, bureaucracies, and local entrepreneurs is echoed by Sam Salam, Chair of the West Sumatra chapter of the Indonesian Chamber of Entrepreneurs (KEIND). He noted that many cooperatives in the past failed to make a real impact because they existed only administratively. Therefore, the Merah Putih cooperatives are being encouraged to become genuinely active business entities that generate tangible economic value and contribute significantly to reducing the development gap between rural and urban areas. Sam believes that regional leaders must have a strong awareness of the role cooperatives play in development, rather than just observing from a distance.
President Prabowo Subianto has emphasized that the KMP initiative is not merely an administrative project, but a large-scale movement to transform villages into inclusive and self-reliant growth centers. The government’s approach is highly strategic, as it not only focuses on economic development but also incorporates social dimensions by involving local youth and skilled workers who have been laid off. These individuals will be empowered as cooperative managers, making the program a platform for reintegrating skilled labor into rural development.
Dedi Irwansa, Chair of Commission A of the East Java Regional House of Representatives, sees tremendous economic potential in village-based cooperatives. He noted that with sufficient initial capital, cooperatives could engage in a range of businesses—from affordable food distribution to basic healthcare services. In an ideal scenario, each cooperative could generate profits of up to IDR 1 billion (approximately USD 65,000) per year. If implemented broadly, this program could contribute up to IDR 80 trillion to the national economy annually, with a strong multiplier effect on rural financial circulation.
Furthermore, Dedi believes that the Merah Putih cooperatives will serve as a powerful engine for strengthening local micro, small, and medium enterprises (MSMEs), which are the backbone of the Indonesian economy. By functioning as business incubators, cooperatives can help villagers develop entrepreneurial skills, access capital, and connect to broader markets. This empowerment will create long-term effects that not only grow local businesses but also increase rural contributions to national GDP.
In the context of food self-sufficiency, the role of village cooperatives is particularly relevant. With direct access to farmers, fishers, and other food producers, cooperatives act as centers for managing and distributing local production. This shortens the supply chain, increases efficiency, and ensures more affordable prices for the public. Additionally, cooperatives can provide essential infrastructure, such as village food warehouses, to anticipate supply fluctuations and maintain price stability.
The government’s commitment to building cooperatives aligned with local needs demonstrates that food self-sufficiency is no longer a mere aspiration—it has been translated into a concrete development agenda with far-reaching economic impact. Through this strategy, villages are no longer passive bystanders in national development, but central actors in achieving the vision of a Golden Indonesia by 2045. The government has placed villages at the heart of economic transformation, rather than on the margins.
With the Merah Putih Cooperative program, the vision of food independence extends beyond production. It also encompasses governance, distribution, and empowerment. The government is proving that sustainable economic development can be achieved through an approach that is empowering, participatory, and responsive to real community needs. This effort will not only strengthen the foundations of the national economy but also ensure that all citizens—from villages to cities—can fairly and equitably enjoy the benefits of development.
