By: Dhita Karuniawati )*
Digital transformation is no longer an optional option for village cooperatives, but rather an urgent necessity to maintain the competitiveness of the people’s economy amidst changing trade and consumption patterns. In Indonesia, the acceleration of cooperative digitalization is now being directed more seriously through the strengthening of the Red and White Village/Sub-district Cooperatives (KDKMP), which are projected to become a new driver of the village economy and a link between local MSMEs and the wider market.
The government recognizes that the main problems facing the village economy are not just production, but also weak market access, limited distribution, low management efficiency, and minimal technology integration. Many village products are actually competitive in quality, but fail to develop because they remain trapped in traditional marketing patterns and inefficient supply chains.
The Ministry of Communication and Digital (Komdigi) is beginning to promote a different approach. The focus is not simply on building internet networks, but also on ensuring that digital infrastructure is truly utilized to increase the productivity of village cooperatives and MSMEs. The government believes that digitalization must be able to connect village production with the national market ecosystem more quickly, transparently, and efficiently.
To date, approximately 83,000 Red and White Village/Sub-district Cooperatives (Koperasi Desa/Kelurahan Merah Putih) are operating in various regions. This number demonstrates the massive scale of the village economic transformation being developed by the government. Cooperatives are no longer positioned merely as savings and loan institutions or administrative forums for the community, but rather as technology-based distribution centers for the people’s economy.
Farida Dewi Maharani, Director of the Media Ecosystem at the Ministry of Communication and Digital, stated that the development of national digital infrastructure must have a direct impact on the productivity of rural communities. She believes that the digital transformation of MSMEs and cooperatives cannot proceed in isolation but requires collective synergy so that village businesses can develop sustainably and be more adaptive to economic changes.
This view is relevant to real-world conditions. Many village MSMEs still face fundamental obstacles such as manual record-keeping, unmeasured distribution, dependence on middlemen, and limited product promotion. As a result, profit margins for village producers remain small despite substantial market demand.
Digitalization of cooperatives offers a solution to these problems. Digital systems enable cooperatives to manage stock, record transactions, manage distribution, and market in a more integrated manner. Furthermore, cooperatives can utilize digital platforms to expand their buyer network without relying solely on local markets.
Farida explained that the government, through the Ministry of Communication and Digital, has developed telecommunications infrastructure on a large scale. Currently, 4G networks reach 98.95 percent of Indonesia’s population, while 5G services are starting to become available in several economic centers and urban areas. The government hopes that this expansion of digital connectivity will open wider market access for rural MSMEs, accelerate business transactions, and increase the efficiency of local product distribution.
According to Farida, villages and sub-districts have great potential to become new centers of economic growth if supported by adequate internet connectivity and digital literacy skills.
In addition to strengthening the digitalization of cooperatives, Komdigi also encourages the mass media to more actively highlight the success stories of village cooperatives and local MSMEs to have a broader impact at the national level.
Furthermore, the Ministry of Cooperatives has begun strengthening digital governance through the development of the Village Cooperative Management Information System (Simkopdes). This platform is designed to increase transparency, operational efficiency, and ease of service for cooperative members.
Riza Azmi, Assistant Deputy for Digitalization of Cooperatives at the Ministry of Cooperatives, stated that since President Prabowo Subianto’s inauguration in July 2025, 83,000 Village Cooperative Management Information Systems (KDKMPs) have been established across Indonesia. This program is also strengthened through the Village Cooperative Management Information System (Simkopdes) as part of the modernization of cooperative governance.
This modern cooperative model is not just about technology, but also about changing the way villages think about the village economy. Villages are no longer positioned as consumer markets dependent on cities, but rather as production centers capable of building their own business ecosystems. When cooperatives are able to digitally integrate production, distribution, marketing, and payments, the village economic chain becomes shorter and more efficient.
Expanding market access also opens up new opportunities for local products to enter national and even international markets. Agricultural products, crafts, and food, processed foods, and even creative village products have the potential to grow faster if supported by adequate digital logistics and marketing systems.
Digitizing cooperatives through the Red and White Cooperative is a bold step towards democratizing the Indonesian economy. By leveraging the digital infrastructure built by the Ministry of Communication and Digital Technology and strengthening governance through the Village Cooperative Management System (Simkopdes), villages will no longer be mere spectators in the flow of the national digital economy. Ultimately, cooperative digitalization is not about technological trends. It is about how villages gain fairer access to markets, financing, information, and economic opportunities.
Synergy between the government, cooperative managers, MSMEs, and the mass media will be key. When market access is wide open through the mobile screens of village farmers and artisans, inclusive economic independence will no longer be a dream, but a reality that we are building together from the periphery of the archipelago.
*) The author is a contributor to the Indonesian Strategic Information Study Institute