By: Ahmad Dante *)
The inauguration of 80,081 Red and White Village Cooperatives by President Prabowo Subianto marks a new chapter in the empowerment of the people’s economy in Indonesia. Prabowo emphasized that this momentum is the starting point for “something big” to strengthen the spirit of mutual cooperation and economic independence of village communities. He emphasized that cooperatives were born as a concept to protect vulnerable groups—like a bond of sticks that, when individually, are fragile, but when united, they become strong. This philosophy is expected to become a social glue and a tool to help the nation face global challenges.
Furthermore, Prabowo emphasized that true independence is not a political symbol, but rather economic independence that ensures no countryman ever goes hungry or trapped in poverty. Cooperatives, he argued, reflect a collective strength that is difficult to break by any major power. Historically, the nation’s founders positioned cooperatives and people’s trade unions as the embryo of a people’s economy that would eventually strengthen the nation’s position on the international stage.
The success of the Merah Putih cooperative, reaching over 100 percent, is inseparable from the role of notaries who legalized the deeds of establishment of thousands of cooperatives. Minister of Law and Human Rights Supratman Andi Agtas appreciated the hard work of the Indonesian Notaries Association (INI) in ensuring the legality of cooperatives, which directly facilitates cooperatives to grow and contribute to increasing national economic growth by up to 8 percent. Without legality, cooperatives find it difficult to obtain access to official financing or technical support, so the role of notaries—drawing up deeds and processing legalization through the General Legal Administration system—is an irreplaceable foundation.
The Chairman of the Central Executive Board of the Indonesian Cooperatives Association (PP INI), Irfan Ardiansyah, added that although the notary’s role is limited to legal aspects, its impact extends to building public trust in cooperatives. Geographical challenges in Papua and Kalimantan are also overcome, as more than 22,000 INI notaries are ready to reach remote villages to ensure each cooperative has a strong legal footing. The involvement of notaries in the establishment of the Merah Putih cooperative emphasizes that village institutional reform must begin with legal certainty.
Beyond legality, financing is key to the sustainability of village cooperatives. BRI, as a strategic partner, welcomed the initiative. BRI President Director Hery Gunardi emphasized that the bank has designed an inclusive financing scheme based on business turnover, making it suitable for small, medium, and large-scale businesses. However, he also acknowledged that managerial capacity and transparency in financial records remain key challenges. Therefore, BRI will utilize Rumah BUMN (State-Owned Enterprise House) and BRILiaN Village as business incubators, equipping cooperative administrators with professional bookkeeping and governance skills.
Furthermore, Hery emphasized local business opportunities that can be stimulated through cooperatives. For example, village-specific handicrafts or commodities can be bridged to export markets through BRI’s business matching facilitation. To support financial inclusion, BRI is maximizing its AgenBRILink service—now spread across more than 1.2 million locations—as a means for cash transactions, top-ups, bill payments, and installments at the village level. The presence of AgenBRILink is expected to lower transaction costs and bring banking services closer to cooperative members.
Coordinating Minister for Food Affairs Zulkifli Hasan also highlighted the role of cooperatives in protecting rural communities from the clutches of illegal online loans and loan sharks. Zulkifli urged BRI and other financial institutions to utilize the AgenBRILink network to help their members access targeted People’s Business Credit (KUR). Making cooperatives an extension of village governments will strengthen an inclusive and sustainable local economic ecosystem.
The establishment of 80,081 Red and White Cooperatives opens up opportunities for massive collaboration among micro-enterprises. Cooperatives can serve as a platform for aggregating raw material demand, negotiating prices, and joint marketing—thus increasing economies of scale. With sound financial management and adequate access to capital, village MSMEs will be better able to compete in regional and national markets.
Cooperatives reflect the principles of solidarity and collective action advocated by pluralist economics. A group’s success in managing shared resources depends on clear rules, oversight mechanisms, and member participation. The Merah Putih Cooperative, with its official deed of incorporation and notarized governance, provides a platform for village members to collectively manage capital, share risks, and optimize local resources—the same principle as a “common pool resource” managed equitably for the common good.
Meanwhile, from an institutional economics perspective, the government’s efforts to integrate cooperatives into the formal financial system through BRI and the Ministry of Law and Human Rights regulations strengthen the institution’s role as “rules of the game,” reducing transaction costs and economic uncertainty. With access to KUR financing, managerial assistance, and AgenBRILink infrastructure, cooperatives internalize positive externalities such as skills enhancement and local market growth. This aligns with driving innovation and long-term economic productivity.
The inauguration of the Merah Putih Village Cooperative is more than just a ceremony. It marks a milestone in the economic transformation of villages that have been marginalized. With a strong legal foundation, an inclusive financing scheme, technological support, and management capacity building, cooperatives are expected to grow as a driving force for village prosperity. We, as MSME activists, fully support this government initiative, as healthy cooperatives will strengthen the nation’s economic foundation—realizing true independence for all Indonesians.
*) The author is an MSME activist
