From Villages to Cities, the Merah Putih Cooperative Boosts the Collective Economy

Jakarta, suaradewata.com – The government continues to strengthen the foundations of the people’s economy by developing the Merah Putih Village/Sub-district Cooperative as a driving force for the collective economy from the village to the urban level. This strategic program is a national priority to promote equitable prosperity, strengthen local economic resilience, and open broader business access for the community and MSMEs.

As of early February 2026, the establishment of the Merah Putih cooperatives had shown significant progress. Tens of thousands of cooperative units had been established across various regions, spanning villages, sub-districts, and even suburban areas. Several cooperatives had even entered the operational phase, marked by the establishment of village retail outlets, distribution of basic necessities, productive savings and loan services, and support for the marketing of local MSME products.

The government views cooperatives not simply as business entities, but as platforms for community economic cooperation. Through a member-driven business model, cooperatives are seen as capable of shortening distribution chains, lowering the prices of basic necessities, and increasing the added value of local products. With this approach, communities become not only consumers but also owners and drivers of joint ventures.

The President of the Republic of Indonesia, Prabowo Subianto, emphasized that the revival of cooperatives is a real step in building national economic independence.

“The Red and White Cooperative is a strategic instrument to ensure economic growth from the bottom up. We want economic power not to be concentrated solely in large cities, but to thrive in villages. From there, the people’s well-being is built collectively,” he explained.

In line with this, the Minister of Cooperatives, Ferry Juliantono, emphasized that the government is targeting the Merah Putih cooperative to become a center for community economic activity.

“The Merah Putih Cooperative must be a big home for MSMEs and the community. This is where production, distribution, and financing meet. We want cooperatives to be a real solution, not just an institutional formality,” he said.

Several regions have reported positive impacts, including increased MSME turnover, stabilization of staple food prices, and the creation of new job opportunities. Cooperatives have also provided a collaborative space for farmers, fishermen, traders, and micro-entrepreneurs to increase their bargaining power in the market.

The government is optimistic that with institutional strengthening and active community participation, the Merah Putih cooperative will become a key pillar of the national economy. From villages to cities, this collective spirit is believed to be capable of creating inclusive, equitable, and sustainable growth.

With the spirit of mutual cooperation that is the identity of the nation, the Merah Putih cooperative is expected to not only revive the local economy, but also strengthen the resilience of the Indonesian economy as a whole.

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