JAKARTA – The digitalization of village cooperatives has begun a new chapter in strengthening the people’s economy in Indonesia. The presence of 83,000 Merah Putih Village/Sub-District Cooperatives (KDKMP) is considered not only to strengthen the economic activities of village communities but also to create new digital technology-based business opportunities in various regions.
The government believes that the increasingly equitable development of national digital infrastructure must be accompanied by an increase in the capabilities of cooperatives and MSMEs in utilizing technology to compete in the modern economic era.
Farida Dewi Maharani, Director of the Media Ecosystem at the Ministry of Communication and Digital (Kemkomdigi), stated that digital transformation is a strategic step to strengthen village cooperatives while expanding economic access for the community.
“Digital transformation must encourage MSMEs to be more adaptive, have broader market access, and increase competitiveness,” said Farida.
According to Farida, the biggest challenge today is no longer internet connectivity, but rather how cooperatives and MSMEs can optimally utilize technology. She stated that of the approximately 60 million MSMEs in Indonesia, only about 40 percent have entered the digital ecosystem.
Therefore, the Ministry of Communication and Digital Technology continues to strengthen telecommunications infrastructure development in various regions. Currently, 4G networks have reached almost the entire Indonesian population, while 5G services are starting to be available in several economic centers and urban areas.
“We are directing this infrastructure strengthening to ensure village cooperatives and MSMEs are increasingly connected to the internet, opening wider market access, and strengthening regional competitiveness,” she said.
Farida believes that villages have great potential to become new centers of economic growth if supported by adequate internet connectivity and digital literacy. Digital access is considered capable of helping cooperatives expand product marketing, improve business efficiency, and sustainably strengthen the regional economy.
Furthermore, the government has also begun strengthening the modernization of cooperative governance through the Village Cooperative Management Information System (Simkopdes). Riza Azmi, Assistant Deputy for Cooperative Digitalization at the Ministry of Cooperatives, stated that all KDKMPs have started using the system since its launch in July 2025.
“As a commitment to modern governance, Simkopdes has become the technological foundation for the Merah Putih Cooperative. This platform bridges transparency, operational efficiency, and ease of access for all members,” said Riza.
Digital empowerment is also being intensified in the regions. The Bali Cooperatives and SMEs Office noted that of the 716 Merah Putih Village Cooperatives established in Bali, 169 villages are already actively operating.
The Head of the Bali Cooperatives and SMEs Office, Tri Arya Dhyana Kubontubuh, stated that digitalization is a primary need for cooperatives to grow and reach a wider market.
“Not all MSMEs and cooperatives are familiar with advances in information technology, but now it’s impossible not to utilize these advances. Everything from financial reports and daily operations to marketing access requires digitalization,” he said.
Through synergy between the government, cooperatives, and businesses, the digitalization of the Merah Putih Cooperative is expected to become a new driver of village economic growth while strengthening the people-centered national economy.
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