By: Gita Oktaviani )*
The Red and White Village Cooperative (KDMP) is present as a new driving force in realizing national economic equality, even from the grassroots level, directly within the community.
This movement positions cooperatives not only as traditional economic institutions, but also as the main driving force capable of driving productivity, creating independence, and further strengthening the social structure in villages.
Through the spirit of mutual cooperation and cross-sector collaboration, KDMP can build a just economic foundation by involving the entire village community as key actors, not just as beneficiaries.
This program is a concrete manifestation of the government’s policy of restructuring the direction of bottom-up economic development. President Prabowo Subianto’s direct instruction emphasized that village cooperatives must serve as centers for managing local production and as distribution hubs for subsidized staple goods.
This new paradigm positions cooperatives as modern, professional, and competitive people’s business institutions. This transformation opens up opportunities for rural communities to build independent economies by collectively and purposefully managing local potential.
Minister of Cooperatives, Ferry Juliantono, emphasized that the government is strengthening the role of village cooperatives through cross-sector consolidation that includes the provision of infrastructure, financing, and technical assistance.
The government is targeting the establishment and funding of 1,000 cooperatives with financial support from the Association of State-Owned Banks (Himbara) and the Revolving Fund Management Institute (LPDB).
The financing scheme not only covers working capital, but also physical investments such as the construction of warehouses, outlets, and operational facilities that enable cooperatives to carry out their dual function as collectors of agricultural products and providers of community needs.
This approach enhances added value at the local level because the flow of goods and capital can now be directly controlled by village cooperatives. The government has also implemented new standards requiring every cooperative receiving support to have a physical investment plan and a concrete economic empowerment program. With this step, village cooperatives are moving from mere managers of revolving capital to solid and productive economic institutions.
The government places significant emphasis on strengthening human resources within cooperatives. Ferry Juliantono ensures intensive training and mentoring for administrators through collaboration with Government Employees with Work Agreements (P3K), sub-district task forces, and regional coordinators from various ministries.
Strengthening managerial and governance capacity is key to ensuring cooperatives operate professionally, efficiently, and transparently. In this way, village cooperatives can grow into modern businesses that generate profits while safeguarding the well-being of the surrounding community.
Support for the KDMP also comes from the private sector. Danantara Chief Operating Officer, Dony Oskaria, believes that village cooperatives must be developed as a sustainable, integrated business model.
He emphasized the importance of building a cooperative ecosystem encompassing the production, distribution, and processing chains. Through synergy with PT Agrinas Pangan Nusantara (Persero), Danantara is designing connectivity between cooperatives in various regions to create mutually reinforcing economies of scale.
This pattern allows cooperatives in food-producing areas to partner with processing and marketing cooperatives, resulting in shorter distribution chains and fairer product selling prices for village businesses.
This collaborative approach reduces rural communities’ dependence on middlemen and strengthens the bargaining power of farmers, fishermen, and artisans. Furthermore, village cooperatives are growing as local economic hubs capable of playing a role in the national supply chain.
The ripple effects are clearly visible: the opening of new job opportunities, the development of supporting businesses such as transportation, logistics, packaging, and digital services for marketing village products.
The Secretary of the Ministry of Cooperatives and SMEs, Ahmad Zabadi, views the KDMP as a socio-economic movement that strengthens village independence. He views village cooperatives as more than just economic platforms, but also a shared learning space for communities to hone skills, develop local potential, and create added value for their families’ economies. Through cooperatives, villagers strengthen each other and build solidarity, which forms the foundation of a sustainable economy.
Zabadi highlighted the importance of digital transformation in strengthening village cooperatives. The SIM-COPDES system now facilitates cooperatives’ access to markets and financing in a transparent and inclusive manner.
Support from Himbara and state-owned enterprises (BUMN) expands financing channels, making technology a tool to accelerate village economic development, not a threat. This transformation confirms that village cooperatives are ready to face the digital economy era with a modern management foundation.
The Red and White Village Cooperative Movement is a symbol of a new direction for people’s economic development—a combination of the spirit of mutual cooperation and professional governance that fosters national economic sovereignty.
Villages are no longer seen as weak points in development, but as new centers of growth capable of supporting food security, creating jobs, and maintaining social stability.
The Merah Putih Village Cooperative proves that economic equality doesn’t have to start from the center of power, but can grow from the grassroots. With the support of the government, the business world, and community participation, village cooperatives stand as a new face of Indonesia’s economic independence—a movement that affirms that national economic revival begins with empowered villages and prosperous communities. (*)
)* The author is a contributor to the Jendela Baca Institute