By: Rivka Mayangsari
The Indonesian government continues to strengthen its concrete efforts to realize national economic equity through village empowerment. One of the flagship programs currently in the spotlight is the “Koperasi Desa/Kelurahan (Kopdes/Kel) Merah Putih”, a strategic initiative designed to reinforce the people’s economic foundation from the grassroots level. This program is not merely about expanding the village economic base, but represents a broader movement to build self-reliance and accelerate sustainable community welfare.
Minister of Cooperatives and SMEs, Ferry Juliantono, emphasized that Kopdes Merah Putih will become an important milestone in the transformation of Indonesia’s national economy. He expressed optimism that this village cooperative model could bring significant and structural change to the people’s economic system. According to Ferry, the presence of Kopdes not only addresses the challenge of economic disparity between regions, but also serves as a concrete solution to strengthening the economic sovereignty of rural communities.
The minister explained that the village cooperative will act as an offtaker—a buyer or collector of local production outputs. Through this system, agricultural, livestock, fishery, and home industry products produced by local residents will be collected and stored in Kopdes warehouses. This mechanism is expected to make the people’s distribution chain more efficient and protect farmers from exploitative price manipulation by middlemen. “We want to create national food sovereignty through cooperatives,” Ferry said in several public statements, underscoring the government’s strong determination to make cooperatives the backbone of the national economy.
Furthermore, Ferry urged communities to revive the spirit of gotong royong (mutual cooperation) in developing the rural economy. He stressed that village cooperatives are not just economic institutions but also platforms for solidarity and collective independence. By driving the economy from the village level, money circulation will stay within the area, thereby increasing local welfare without over-reliance on big cities or external investors. “If the village economy is strong, the nation will be strong,” he asserted.
A similar optimism was expressed by Minister of Home Affairs Tito Karnavian, who stated that Kopdes Merah Putih would become a major driver of regional financial empowerment. Tito revealed that the government has prepared Rp 210 trillion in capital expenditure to strengthen local economic foundations through village and urban cooperatives. This significant funding will be used to build Kopdeskel Merah Putih outlets and facilities across Indonesia through labor-intensive methods.
According to Tito, the labor-intensive approach is chosen so that the development of cooperative facilities can directly empower rural residents while creating new employment opportunities. Local labor and regional resources will be prioritized in the implementation, ensuring that the economic benefits flow directly to the people living around project areas. In this way, every rupiah of government expenditure will truly return to the people.
The Home Affairs Minister also emphasized that the Kopdeskel Merah Putih program is not merely an economic project, but a comprehensive national strategy to reduce poverty, lower unemployment, improve the Gini ratio, and maintain inflation stability. He noted that with cooperatives at the village level, the government can conduct more direct economic interventions. For instance, when the prices of basic goods rise or supply crises occur, the cooperative network can be mobilized to stabilize distribution and safeguard people’s purchasing power.
Moreover, Tito highlighted that the establishment of Kopdes Merah Putih would help reduce the dominance of middlemen and loan sharks, who often exploit small business owners in rural areas. Through the cooperative system, villagers can gain fairer access to capital, better selling prices for their produce, and broader market access. The program is also expected to strengthen national food security, open new business opportunities, and accelerate inclusive local economic growth.
Beyond its economic impact, the program carries a strong social dimension. The village cooperative will serve not only as a business institution but also as a community center that fosters cooperation and social solidarity. Through the cooperative, communities can exchange knowledge, strengthen small business networks, and build an economic system rooted in familial values—a principle central to the Pancasila-based economy.
The government aims to establish Kopdes Merah Putih in every village and urban ward across Indonesia within the coming years. This initiative represents the tangible realization of the national vision to develop the economy from the periphery, in line with Indonesia’s long-standing development philosophy.
Kopdes Merah Putih is more than just an ordinary cooperative—it is a symbol of a sovereign people’s economic movement. Through the synergy between central and regional governments and the people, the program is believed to be capable of creating a new, fairer, and more sustainable economic order.
With the spirit of the Red and White (Merah Putih) ignited from Indonesia’s villages, the nation is building a solid foundation for economic self-reliance. When villages stand independently and the people prosper, the great dream of an advanced Indonesia will no longer be a distant aspiration, but a reality being built together.
The author is an Economic Observer.