By: Evi Maryati )*
Village development continues to move toward a more comprehensive approach, placing economic empowerment at the heart of progress. Villages possess significant and diverse economic potential, which can drive community prosperity if managed in a structured and sustainable manner. Optimizing this potential requires solid, inclusive institutions oriented toward the common good. In this context, the Merah Putih Village Cooperative serves as a strategic instrument to strengthen the village economy through a spirit of mutual cooperation and independence. The existence of this cooperative reflects the state’s commitment to encouraging villages to become centers of resilient, productive, and competitive economic growth for the people.
The Merah Putih Village Cooperative is not just a business entity, but rather a people’s economic vehicle that stems from the real needs of village communities. Minister of Social Affairs Saifullah Yusuf (Gus Ipul) stated that through cooperatives, farmers, fishermen, MSMEs, and other small business groups can come together to improve their bargaining power, reduce production costs, and expand market access. The family principle that underpins cooperatives differentiates them from large corporations that focus solely on profit accumulation. Cooperative profits are returned to members and villages, ensuring that economic activity is truly felt at the local level.
Optimizing the village economy through cooperatives also means shortening the distribution chain, which has historically disadvantaged rural producers. Many village commodities are sold at low prices at the farm level, but fetch sky-high prices in the consumer market due to the long trade chain. The Merah Putih Village Cooperative can act as a production aggregator, logistics manager, and collective marketer of village products. This way, added value no longer leaks outside the village but accumulates for the welfare of the villagers themselves.
Meanwhile, Minister of Cooperatives Ferry Juliantono explained that village cooperatives have significant potential to develop inclusive financial services. Access to capital remains a classic problem in villages, where communities often rely on middlemen or informal loans with high interest rates. The Merah Putih Village Cooperative can provide fair, transparent, and easily accessible savings and loans for members. This social trust-based financing scheme not only supports business development but also reduces exploitative economic practices.
The presence of village cooperatives also contributes to local job creation. Cooperative business units, such as agricultural processing, trade, services, and the creative economy, provide employment opportunities for the village’s youth. This is crucial to curbing the flow of urbanization, which has been draining rural human resources. When villages can provide viable economic opportunities, young people no longer have to leave their hometowns to seek a living in the city.
In terms of governance, the Merah Putih Village Cooperative promotes transparent and participatory economic practices. Each member has a voice in decision-making, so the cooperative’s business direction is determined collectively. This mechanism not only strengthens a sense of ownership but also trains the village community in the practice of economic democracy. With professional and accountable management, the cooperative can serve as an example of a healthy village institution trusted by the community.
Coordinating Minister for Food Affairs Zulkifli Hasan explained that optimizing village cooperatives requires adequate ecosystem support. The government plays a role in providing favorable regulations, managerial assistance, and access to markets and technology. Furthermore, village communities need to continuously improve their human resource capacity to prevent cooperatives from operating solely in a traditional manner. Collaboration with universities, financial institutions, and the private sector is also key to promoting village cooperatives’ advancement and competitiveness.
Ultimately, the Merah Putih Village Cooperative reflects the spirit of economic independence rooted in national values. When villages are economically strong, national resilience is strengthened. Optimizing the village economy through cooperatives is not only about increasing income, but also about building social justice, strengthening solidarity, and ensuring that development truly starts from the bottom up. Economically sovereign villages are the foundation for a progressive and just Indonesia.
In closing, optimizing the village economy through the Merah Putih Village Cooperative emphasizes that sustainable development must rely on local strengths and community participation. Cooperatives are a strategic tool for consolidating village economic potential, creating added value, and ensuring that development outcomes are shared equitably by the community. With transparent, professional management and a focus on the common good, village cooperatives can become a resilient driving force for the people’s economy amidst the challenges of national and global economic change.
Going forward, the success of the Merah Putih Village Cooperative will depend largely on the consistent commitment of all stakeholders, from the government and cooperative management to the village community itself. Capacity building, business innovation, and cross-sector collaboration must be continuously encouraged to ensure the cooperative not only survives but also thrives and becomes competitive. Thus, village cooperatives will not merely be a symbol of the people’s economy but will truly become a key pillar of village independence and prosperity.
*) The author is a contributor to the Indonesian Strategic Information Study Institute