Jakarta — The government is accelerating the strengthening of the Merah Putih Village Cooperative as a key partner in the success of national programs under President Prabowo Subianto. This step was taken to increase the cooperative’s contribution to GDP while improving the welfare of village communities.
President Prabowo designated the Merah Putih Cooperative as a National Strategic Project (PSN). This designation was made so that cooperatives could become stronger instruments for the people’s economy and be able to reach all levels of society, down to the village level.
Minister of Cooperatives, Ferry Joko Juliantono, stated that the government sees great potential in developing cooperatives as a new economic force. “Indonesia has the momentum to expand cooperatives,” Ferry emphasized.
To date, the government has recorded that approximately 82,000 Merah Putih Cooperatives have officially registered as legal entities. The government also completed the relaxation of various regulations in several ministries from August to September to support the acceleration of this program. This policy was implemented through Presidential Instruction (Inpres) Number 9 of 2025, which involves 18 ministries and institutions.
The Merah Putih Cooperative is designed to provide basic services to village communities, including grocery stores, pharmacies, village clinics, food warehouses, microfinance institutions, and logistics and transportation services. Furthermore, the cooperative is given space to develop businesses aligned with the village’s potential, such as local culinary delights, MSME crafts, and village tourism.
In general, this cooperative has three main functions: distributing basic community needs, acting as an off-taker for village products ranging from food to fisheries, and acting as a channel for government programs such as food aid, subsidized fertilizer, and subsidized LPG.
Support also comes from the regional government. Banten Governor Andra Soni emphasized the importance of collaboration between all stakeholders to strengthen the role of the Merah Putih Cooperative in their respective regions. He believes that synergy between the regional government, cooperative management, and the community is essential for the cooperative to optimally tap local economic potential.
“Collaboration and synergy between all stakeholders are crucial in strengthening the Merah Putih Village Cooperative, especially in exploring the economic potential in their respective regions,” said Andra.
He also asked the cooperative management to continue improving their understanding of business governance, legal regulations, and organizational management. “Because this is a national program, everything is geared towards it, so the administrators must repeatedly understand the legal and other aspects of management,” he emphasized.
The government hopes that the Merah Putih Cooperative can become a driving force for the village economy by expanding access to basic services, creating jobs, and increasing community incomes. With support from various ministries and regions, this program is targeted to become the foundation of a strong and sustainable people’s economy. (*)