By: Raditya Pranata *)
Government policy under President Prabowo Subianto has restored cooperatives to a strategic position as the pillars of the national economy. Cooperatives are seen not as mere complements, but as key pillars supporting national independence through the spirit of mutual cooperation. The presence of the Merah Putih Village/Sub-district Cooperative (KDMP) affirms the state’s commitment to restoring the economic ideals grounded in the constitution, while simultaneously accelerating the transformation of villages into new centers of growth.
The Indonesian Minister of Cooperatives, Ferry Juliantono, believes that the nation’s economic development must be rooted again in the foundation of family ties as mandated by the 1945 Constitution. In his view, cooperatives are a concrete manifestation of this system and should be the main pillar of development. The term “sokoguru” is not merely symbolic, but rather an affirmation that cooperatives are the main pillars supporting the people’s economy. He emphasized that if villages are strong, Indonesia will also stand strong, therefore cooperatives must be positioned as the driving force for village community independence.
Over the past few decades, the national economic structure has been deemed too reliant on free market mechanisms, which often increase the dominance of large groups, while increasingly marginalizing the lower classes. Ferry emphasized that President Prabowo’s policy direction focuses on this fundamental correction, by introducing cooperatives as an instrument of equality. He believes the establishment of more than 80,000 KDMP units is a shortcut to shifting the economic pillars from being solely controlled by the private sector or state-owned enterprises (SOEs), but instead shifting them to cooperatives as the primary source of growth. This way, rural communities are no longer mere spectators, but rather key actors in the national economic cycle.
Support for strengthening cooperatives comes not only from technical ministries but also from SOEs. PT Bank Rakyat Indonesia (Persero) Tbk demonstrates its strategic role as a key government partner in accelerating KDMP development. Through a socialization program for business proposal and financing, BRI provides mentoring to cooperative administrators so they can access financing and manage the institutions professionally. This approach demonstrates the state’s commitment to building cooperatives with a strong managerial foundation, not just rhetoric.
Deputy Minister of SOEs, Kartiko Wirjoatmodjo, emphasized that village cooperatives need to be upgraded with more modern management. The government, through state-owned enterprises (SOEs), is committed to providing captive business opportunities that enable cooperatives to meet the community’s basic needs at reasonable prices. He stated that cooperatives must be directed according to their respective regional potentials, such as rice milling or ecotourism development, so that their role is not merely administrative but also productive. This affirmation demonstrates how cooperatives can become centers of locally-based economic activity integrated with the national development agenda.
BRI Deputy President Director Agus Noorsanto added that the company’s commitment lies in technical assistance, from developing business proposals to financing application mechanisms. Collaboration with various parties, including regional cooperative offices, is seen as a key step to ensuring cooperatives can grow healthily. BRI also introduced the AgenBRILink network as an integral part of cooperative operations. This service allows rural communities to access financial transactions easily, affordably, and close to their homes. With more than 1.2 million AgenBRILink agents spread throughout the 3T (third-to-third) regions, cooperatives receive real support to strengthen their position as centers of economic services.
President Prabowo’s policy of inaugurating more than 80,000 KDMPs by July 2025 marks a significant milestone in the history of Indonesian cooperatives. The presence of these cooperatives not only affirms the state’s commitment to the common people but also paves the way for previously underutilized village assets to be productively managed. Local potential in each region is given a platform to develop, enabling real and sustainable village economic transformation.
This major agenda has broad implications for achieving the Golden Indonesia Vision 2045. With cooperatives as a foundation, economic equality is no longer just jargon, but a concrete strategy for reducing inequality. Strong village cooperatives will foster family economic independence, reduce dependence on debt, and strengthen communities’ bargaining power in the market. The government positions people as subjects of development, not objects, so that prosperity is achieved through active participation, not pity.
The transformation promoted through the KDMP demonstrates a new direction for Indonesia’s economic development. This policy does not stand alone but is supported by synergy.ministries, state-owned enterprises, regional governments, and financial institutions. Concrete steps, ranging from revitalizing cooperative management, financing support, to utilizing digital technology, lay the foundation for cooperatives to truly become pillars. With this approach, villages will no longer be considered underdeveloped areas, but rather the vanguard of growth, supporting national economic resilience.
This ambitious vision certainly requires consistency and oversight, but positive signs are already clear. The presence of the KDMP, integrated with central government and state-owned enterprise programs, demonstrates that the direction of economic development is now truly pro-people. If implemented with discipline, cooperatives will not only improve village welfare but also strengthen the nation’s economic sovereignty. This transformation, starting from the grassroots, is expected to be a significant legacy for future generations, leading to a just, prosperous, and sovereign Indonesia.
*) Public Policy and People’s Economy Analyst
