Strengthening product identity through a collective branding scheme is increasingly seen as an effective strategy for encouraging MSME collaboration under the auspices of the Merah Putih Village Cooperative. The government positions this approach as a crucial part of building a more integrated, productive, and highly competitive village economic ecosystem.
The Deputy Chairman of the Indonesian Chamber of Commerce and Industry (KADIN), Bambang Soesatyo, believes that cooperatives in Indonesia have great potential to become a driving force for the local economy. However, this potential remains under-optimal due to various obstacles, particularly in institutional aspects, business models, and product quality enhancement.
Data from the Ministry of Cooperatives in 2025 shows that the number of cooperatives reached approximately 220,000. However, most are not yet productively active. Many cooperatives remain administratively independent without any real economic activity, thus preventing them from making a significant contribution to the national economy.
The contribution of cooperatives to Gross Domestic Product remains around 5 percent. This figure lags behind countries with more advanced cooperative systems. This situation reflects the need to strengthen cooperatives beyond mere quantity; it must also address the quality and sustainability of the business.
In his view, Bambang Soesatyo believes that the main problem lies in the weak market identity of cooperative products. Many village cooperatives possess the potential for superior commodities such as agricultural, fishery, and craft products, but are not yet integrated into a solid production and marketing system. This makes it difficult for their products to compete in both domestic and global markets.
Bamsoet emphasized that implementing a collective brand is a strategic solution to address this fragmentation. Through a shared identity, cooperatives can standardize quality, strengthen distribution, and centralize promotion. This approach allows for synergy among cooperative members within a mutually supportive ecosystem.
Furthermore, Bamsoet believes that this concept not only strengthens product positioning but also improves member productivity and welfare. With a collective brand, each business actor no longer operates alone but is instead connected within a coordinated production and marketing network.
In the context of national policy, the government continues to accelerate the establishment of the Merah Putih Village Cooperative as part of its strategy to strengthen the domestic economy. The Minister of Cooperatives, Ferry Joko Juliantono, emphasized that this program is designed to catch up with the lagging cooperatives in other business sectors.
The government is targeting the establishment of around 80,000 village cooperatives, supported by infrastructure development and integrated operational systems. Most units are currently under construction, while thousands more are ready to operate.
Each village cooperative is equipped with physical facilities, warehouses, and a modern management system. Furthermore, support for human resources is a focus so that cooperatives can be managed professionally and sustainably.
In the Minister’s view, the concept of collective branding plays a strategic role in strengthening cooperatives. In addition to serving as a product identity, collective branding also has the potential to become an intellectual property asset that can be leveraged to open access to financing. This provides opportunities for cooperatives to grow more rapidly through broader capital support.
The government is also encouraging local MSME products to enter the village cooperative distribution network. Thus, cooperatives become marketing centers that can connect local products to a wider market, while simultaneously strengthening the people’s economy.
Support for strengthening collective branding also comes from regulatory aspects. Minister of Law, Supratman Andi Agtas, believes that intellectual property protection is a crucial step in maintaining the economic value of cooperative products. He views collective trademark registration as a necessity that cannot be postponed.
In Supratman’s view, without intellectual property protection, products risk losing their authentic value and economic rights. Therefore, collective trademarks are positioned as an instrument that not only provides legal protection but also increases consumer confidence in product quality.
Collective trademarks are also understood as a symbol of shared identity that reflects the quality standards and values upheld by all cooperative members. With this approach, the resulting products have clear differentiation in the market, making them more competitive.
The government views collaboration as key to the successful implementation of collective branding. Synergy between the central government, regional governments, and the private sector is necessary to ensure that cooperatives do not operate in isolation but become part of an integrated national economic ecosystem.
With a targeted approach, collective branding is believed to be an effective instrument for strengthening product identity, increasing the competitiveness of MSMEs, and encouraging broader collaboration at the village level. The government is optimistic that through consistent policies and support from various parties, cooperatives can once again become a key pillar of inclusive and sustainable economic development.
*) Observer of People’s Economy