By: Laras Adhisti )*
The government has positioned villages as the starting point for national economic development by strengthening the Merah Putih Village Cooperative. This policy reflects the view that the local people’s economy is the primary foundation for the nation’s economic resilience and independence.
Indonesian President Prabowo Subianto emphasized that economic development cannot rely solely on urban areas and large industrial areas. The government views villages as a social and economic powerhouse that has not been fully utilized within the national development system.
In government policy, cooperatives are positioned not merely as business entities but as instruments of economic sovereignty. Through cooperatives, the state exists to protect farmers, fishermen, artisans, and small businesses from detrimental trade practices and unequal market access.
The government believes that many village products are high-quality, but struggle to compete due to limited capital, technology, and distribution networks. This situation often causes local businesses to stop at the raw material production stage without achieving optimal added value.
The Merah Putih Village Cooperative is designed to serve as an integrated center for village economic activity. The government encourages cooperatives to play a role in everything from providing production facilities and processing products to distribution and marketing, enabling village products to compete in a wider market.
By strengthening cooperative institutions, the government is striving to ensure that local products are no longer marginalized in the national supply chain. Cooperatives are positioned as a link between village potential and market needs, while also serving as a means of strengthening the bargaining position of small businesses.
Transforming cooperative governance is a key government priority. President Prabowo Subianto believes that cooperatives must be managed professionally, transparently, and accountably to build trust among members and business partners. The government is committed to providing regulatory support, financing, and human resource capacity building for cooperatives.
Strengthening village cooperatives is also seen as part of a broader strategy to build national economic independence. The government believes that the nation’s economic resilience will be stronger if supported by a strong, organized, and competitive people’s economy.
Within this framework, the Merah Putih Village Cooperative is positioned as a crucial hub connecting village production with national needs. This role is seen as capable of strengthening the local economy and acting as a buffer against the impacts of global economic uncertainty.
In line with national policy directions, the Minister of Women’s Empowerment and Child Protection, Arifah Fauzi, emphasized that village cooperatives also play a strategic role in empowering women and vulnerable groups. The government views cooperatives as a safe and productive space for women to develop businesses and improve their skills.
Women’s involvement in village cooperatives is considered crucial for strengthening local economic competitiveness. The government encourages women to participate not only as production actors but also in cooperative management and decision-making structures.
Local products produced by women, such as processed food, crafts, and creative products, are seen as having significant potential to compete in a broader market. The government views cooperatives as an effective means of strengthening market access and increasing the added value of these products.
Women’s economic empowerment through cooperatives also has a direct impact on family well-being. The government believes that increasing women’s income contributes to children’s quality of life and strengthens social resilience in villages.
Strengthening family finances through cooperatives is also seen as having an impact on child protection. The government believes that more prosperous families are better able to fulfill children’s rights and reduce the risk of social vulnerability.
On the other hand, strengthening local economic competitiveness is also supported by legal certainty. The Central Sulawesi Regional Office of the Ministry of Law has taken strategic steps by encouraging collective trademark registration for businesses affiliated with the Merah Putih Village Cooperative.
Local governments consider legal protection of business identities to be a crucial element in increasing economic value and market confidence. Collective brands are seen as strengthening the cooperative’s competitive position while protecting products from plagiarism.
Rakhmat Renaldy, Head of the Central Sulawesi Regional Office of the Ministry of Law, emphasized that collective trademark registration offers dual benefits for cooperatives, both in terms of legality and increased competitiveness. The local government views this step as part of its commitment to supporting MSMEs and cooperatives for sustainable growth.
This effort is being carried out through collaboration with the Central Sulawesi Cooperatives and SMEs Office. The local government is encouraging brand awareness and education among cooperatives to raise awareness of the importance of legal protection.
Collective branding is seen as the foundation for building a strong business identity. The government believes a clear and protected identity will increase consumer trust in cooperative products and open up broader market opportunities.
With legal certainty, the Merah Putih Village Cooperative can develop products and services with greater confidence. The government views this protection as a crucial factor in encouraging cooperatives to become competitive local economic actors.
The central and regional governments’ commitment to supporting village cooperatives demonstrates their commitment to building the economy from the bottom up. The Merah Putih Village Cooperative is seen as a strategic instrument for increasing local economic competitiveness while strengthening the national economic structure.
*) Economic Policy Consultant – People’s Economic Forum
