Jakarta – The government has reaffirmed its commitment to strengthening national economic equality through the development of Village Cooperatives Merah Putih (Koperasi Desa Merah Putih). The program serves as a strategic initiative to build rural economic self-reliance while expanding employment opportunities across Indonesia.
Minister of Cooperatives Ferry Juliantono stated that modernization is the key to attracting young people to participate in managing village cooperatives.
“Attracting the younger generation requires more than just rebranding. We must prove that cooperatives are managed in a modern and professional way. Once modernized, young people will come naturally,” he said.
Ferry explained that village cooperatives will be directed to adopt digital management systems, financial transparency, and technological integration, including artificial intelligence (AI), to enhance efficiency and competitiveness.
“Digital transformation is not only about efficiency, but also about building public trust in cooperatives as transparent and highly competitive economic institutions,” he emphasized.
As part of this commitment, the Ministry of Cooperatives has prepared a comprehensive support ecosystem. A total of 1,104 Project Management Officers (PMOs) have been deployed across 38 provinces and 514 regencies/cities, supported by 8,000 business mentors who provide hands-on assistance to cooperative administrators in the field. The government has also developed a Village Cooperative Management Information System and implemented prosecutor-based oversight mechanisms to ensure transparent and accountable governance.
“Additionally, all cooperative workers will receive continuous training to strengthen their managerial and entrepreneurial competencies. We want cooperatives to become modern economic institutions capable of competing in the digital era,” Ferry added.
So far, the program has established 82,320 Merah Putih Village Cooperatives across Indonesia, with many already in active operation. The government targets all village cooperatives to be fully operational by March 2026, in line with the accelerated construction of outlets and warehouses by PT Agrinas Pangan Nusantara (Persero), as mandated by Presidential Instruction No. 17 of 2025.
Ferry expressed optimism that the Village Cooperative Merah Putih initiative could create up to one million new jobs by the end of 2025. Each cooperative is projected to employ 20–25 workers through seven core business units, including grocery outlets, clinics, pharmacies, cooperative offices, savings and loan units, warehousing, and logistics.
“Koperasi Merah Putih symbolizes national economic independence. From the villages, we build the people’s economic strength,” Ferry said.
Meanwhile, Chairman of the Regional Representative Council (DPD RI), Sultan B. Najamudin, voiced his full support for the government’s effort to strengthen the rural economy through the establishment of the Village Cooperative Merah Putih. According to him, cooperatives are an effective tool to mobilize local economic potential and reinforce community resilience.
“Village cooperatives act as local economic drivers that can open new business opportunities, strengthen the real sector, and promote equitable economic growth,” he stated.
Sultan further highlighted the importance of involving Village-Owned Enterprises (BUMDes) within the cooperative ecosystem to ensure that economic benefits are directly felt by local communities.
“When BUMDes and cooperatives move together, the economic chain will circulate within the village, and residents’ welfare will improve,” he remarked.
He added that the DPD RI will continue to oversee the government’s policies in expanding the role of village cooperatives as a backbone of the national economy.
“We want Indonesia’s economic development to truly start from the villages. Economic equality must not remain a slogan — it must become a real movement through village cooperatives,” Sultan affirmed.
With strong synergy between the government, DPD RI, and the public, the Village Cooperative Merah Putih initiative is expected to become a cornerstone of national economic equity and a tangible symbol of Indonesia’s people-centered economic revival.
