By: Rivka Mayangsari*)
Independent , strong , and just — these three words are the spirit behind the birth of the Merah Putih Village / Sub-district Cooperative (KDKMP). This tactical initiative , initiated by President Prabowo, is a breath of fresh air for people- based economic development in Indonesia. No longer simply a savings and loan facility , KDKMP is designed as an integrated economic driver ready to step up to boost the welfare of farmers , fishermen , and local micro, small, and medium enterprises (MSMEs ) .
Amid global challenges and the need to strengthen national food security, the government views villages as a key pillar of Indonesia’s economic development. Therefore, the establishment of the KDKMP is not merely an administrative program, but rather part of a major national economic transformation that begins at the grassroots level. The government believes that sustainable economic development must begin with strengthening the capacity of villages as centers of production and distribution of the people’s economy.
The KDKMP program is based on the spirit of Article 33 of the 1945 Constitution, which emphasizes the principle of family in the national economic system. Furthermore, this policy is reinforced by Presidential Instructions No. 9 and 17 of 2025 concerning the establishment and development of Red and White Village/Sub-district Cooperatives and their supporting facilities. This legal basis demonstrates that cooperatives are once again positioned as a primary instrument for national economic development that favors the people.
The KDKMP is also a crucial part of supporting the President of the Republic of Indonesia’s major Asta Cita agenda, particularly in the areas of national food self-sufficiency and village economic equality. The government believes that strengthening the village economy is key to creating stronger national economic stability. When villages are economically strong, national resilience will also be strengthened in facing various global challenges.
President Prabowo emphasized that cooperatives are the collective strength of the Indonesian people. He argued that the national economy must be built on a spirit of mutual cooperation and kinship, not solely on free competition that weakens the common people. KDKMP is a tangible symbol of how the state is present to strengthen the economic position of rural communities so they are not left behind in the flow of national development.
The government envisions the KDKMP as an integrated village economic service center capable of directly addressing various community needs. Its presence is expected to improve the welfare of farmers, fishermen, and rural communities through a more efficient and integrated economic system. Many rural communities face the problem of long distribution chains, which result in high prices for basic necessities while the prices of community products remain low.
Coordinating Minister for Food Affairs Zulkifli Hasan believes the KDKMP will bring significant changes to the people’s economy. He believes that national economic growth must begin with villages and grassroots communities as the primary foundation of development. He emphasized that villages should no longer be merely objects of development but rather centers of new, productive and independent economic growth.
KDKMP also creates new job opportunities for local communities by involving local workers in its operations. The government has even recruited approximately 30,000 KDKMP managers nationwide to ensure modern, professional, and transparent cooperative management. This step demonstrates the government’s commitment to building cooperatives that are not only based on the spirit of mutual cooperation but also supported by a robust management system.
During its implementation, the President also directly reviewed the readiness of the integrated service system at various cooperatives. The government emphasized that KDKMP is not just an ordinary business entity, but rather an integrated economic service center that distributes subsidized fertilizer, LPG, affordable basic necessities, and People’s Business Credit (KUR).
With adequate logistics and warehousing facilities, cooperatives will become the main absorbers of local agricultural products to maintain price stability at the producer level.
This role is crucial in creating business certainty for farmers and fishermen. Price fluctuations often threaten the incomes of rural communities. With cooperatives absorbing production, communities are guaranteed a more stable and profitable market.
The President’s directive in the KDKMP program focuses on developing a just village economic system, as mandated by Article 33 of the 1945 Constitution. Cooperatives are changing the old paradigm by transforming villages not only as production locations for raw materials but also as distribution centers with high economic added value. The synergy between modern governance and the spirit of mutual cooperation is believed to be a key bulwark in strengthening national food security.
Through the operationalization of thousands of KDKMPs , the government has begun laying a solid foundation for the nation’s economic sovereignty from the ground up. The success of this initial phase will serve as an important model for implementation across Indonesia. By increasing village productivity through healthy and professional cooperatives, Indonesia’s goal of food self-sufficiency and equitable public welfare is increasingly on track.
The presence of KDKMP demonstrates that national development is not solely centered in large cities, but also grows from strong, independent, and productive villages. With a spirit of mutual cooperation and targeted policy support, cooperatives are once again the backbone of the people’s economy and a shield for the well-being of the Indonesian people.
*) Economic observer