By Aulia Andini)
Strengthening the governance of Merah Putih Village Cooperatives (Koperasi Desa Merah Putih/KDMP) is a highly relevant strategic step in addressing the challenges of rural economic development in Indonesia. Amid government efforts to promote equitable welfare and reinforce the national economic foundation starting from villages, the presence of KDMP serves not only as a symbol of the state’s commitment to rural communities, but also as a concrete instrument for building community-based economic self-reliance. The target of establishing tens of thousands of village cooperatives by 2026 reflects the government’s seriousness in positioning cooperatives as sustainable drivers of the people’s economy.
Coordinating Minister for Food Affairs, Zulkifli Hasan, has reaffirmed the government’s commitment to accelerating the development of Merah Putih Village Cooperatives as the primary platform for absorbing the production output of rural communities. This statement underscores that cooperatives are no longer treated as supplementary policy instruments, but as core economic infrastructure at the village level. With this role, cooperatives are expected to provide more stable added value for agricultural, fisheries, and other small-scale economic products, while reducing farmers’ and micro-entrepreneurs’ dependence on middlemen and lengthy distribution chains.
Moreover, Merah Putih Village Cooperatives are projected to become the backbone for the implementation of national strategic programs, including the Free Nutritious Meals (Makan Bergizi Gratis/MBG) program. This role positions village cooperatives as key nodes in the national food supply chain, from production to distribution. When managed properly, cooperatives will be able to ensure the availability of quality food materials, while also guaranteeing that the economic benefits of national programs are genuinely felt by rural communities as primary producers.
Given the magnitude of responsibilities borne by KDMP, these must be accompanied by the strengthening of professional and accountable governance. Deputy Minister of Cooperatives, Farida Farichah, emphasized that Merah Putih Village Cooperatives should not be viewed merely as business entities, but as hubs for consolidating village potential. From this perspective, cooperatives serve as connectors between village production and markets, as well as between government policies and the real needs of communities. This view highlights that the success of cooperatives depends heavily on their ability to build an integrated village business ecosystem from upstream to downstream.
As emphasized by the Ministry of Cooperatives, strengthening cooperative governance includes at least three key aspects. First, enhancing the capacity of cooperative managers and supervisors to ensure professional, transparent, and accountable management. Without competent and integrity-driven human resources, cooperatives risk repeating classic problems such as weak management, internal conflicts, and declining member trust. Therefore, central government support through the deployment of Government Employees with Work Agreements (P3K) in each KDMP unit is a crucial step to ensure adequate management standards.
Second, strengthening the connectivity of cooperative businesses with markets at the local, national, and digital levels. In the digital economy era, village cooperatives must not be confined to conventional business models. The utilization of information technology and broader marketing networks will open opportunities for village products to compete and obtain fairer prices. In this way, cooperatives can truly function as aggregators and distributors that enhance the bargaining position of rural economic actors.
Third, reinforcing synergy between cooperatives, village governments, and regional governments so that cooperatives become an integral part of village development planning. The role of village heads as cooperative supervisors is particularly crucial. Farida Farichah emphasized that village heads are not only responsible for facilitating cooperative establishment and legal formalities, but also for providing infrastructure, utilizing village assets, and mobilizing productive community participation. Collaboration among cooperatives, village-owned enterprises (BUMDes), farmer groups, fisher groups, and local business actors is key to ensuring that village economic ecosystems grow inclusively and sustainably.
The supervisory aspect is also a vital element in strengthening the governance of Merah Putih Village Cooperatives. The Ministry of Cooperatives promotes joint oversight through the Jaga Desa program, implemented collaboratively with the Attorney General’s Office. At the village level, operational oversight of cooperatives is carried out participatively by community members as cooperative members. Active member involvement in meetings, financial reporting, and business supervision strengthens accountability and maintains trust in cooperative institutions.
Optimism regarding the development of KDMP was also expressed by the Chairman of the National Executive Board of the Association of Indonesian Village Governments (DPP Apdesi) for the 2021–2026 period, Surta Wijaya, who believes that collaboration between the association and the Ministry of Cooperatives will further strengthen the development and growth of Merah Putih Village Cooperatives. Support from village heads is a determining factor in the successful implementation of this policy on the ground, given that villages are the primary operational space for cooperatives.
Experiences from a number of cooperatives that have developed in various regions demonstrate that village cooperatives have great potential to grow into centers of people’s economic services. Therefore, supporting the strengthening of governance for Merah Putih Village Cooperatives is not merely about constructing physical buildings or pursuing numerical targets, but about ensuring that cooperatives are managed professionally, transparently, and in the best interests of their members. If good governance is implemented consistently, KDMP will become a strong foundation for the revival of the rural economy, as well as an important pillar in realizing national development that is just, inclusive, and sustainable.
(* The author is a public policy observer)
