By: Putu Mahendra )*
The transformation of village economic services continues to be a government focus in strengthening people-centered development. One strategic initiative currently underway is the digitalization of the Merah Putih Village/Sub-district Cooperatives as centers for village economic services. The presence of more than 83,000 village cooperatives is considered not only to stimulate community economic activity but also to be a crucial instrument in building a more modern, efficient, and integrated village economic service system.
The Red and White Cooperative exists as part of an effort to strengthen community access to economic services, from business management and product marketing to improving the well-being of rural communities. Amidst the advancement of digital technology, cooperatives are no longer viewed solely as traditional savings and loans or trading institutions, but also as centers for information technology-based village economic transformation.
The government believes that the transformation of village economic services must go hand in hand with the equitable distribution of national digital infrastructure. The increasing availability of internet networks is seen as a significant opportunity for cooperatives to provide faster, more transparent, and more accessible economic services to the public. The use of digital technology is also believed to strengthen the competitiveness of village cooperatives in the face of modern economic developments.
Farida Dewi Maharani, Director of the Media Ecosystem at the Ministry of Communication and Digital (Kemkomdigi), stated that digital transformation is a crucial strategy for strengthening the role of village cooperatives as centers for community economic services. Digitalization enables cooperatives to provide more effective service systems while expanding community economic access across various regions.
This transformation is considered crucial because the current challenge for cooperatives is no longer simply internet access, but rather the ability to optimally utilize technology. Of the approximately 60 million MSMEs in Indonesia, only about 40 percent have entered the digital ecosystem. This situation demonstrates the significant potential for developing village economic services through broader digital technology utilization.
The government continues to accelerate the development of telecommunications infrastructure to support this transformation. Currently, 4G networks have reached almost the entire Indonesian population, while 5G networks are starting to be available in several economic centers and urban areas. The presence of this digital infrastructure is a crucial foundation for supporting the modernization of cooperative services at the village level.
With increasingly widespread internet connectivity, villages are seen as having significant potential to develop into new centers of economic growth. Digitalization enables cooperatives to expand the marketing of local products, improve business management efficiency, and provide more accessible economic services to the public. This also strengthens the position of villages as a vital component of national economic development.
The transformation of village economic services is also evident in the increasingly modern governance of cooperatives. Information technology is now being implemented in administrative management, financial transactions, and member services. Digital systems are considered capable of increasing transparency and operational effectiveness, thus optimizing public services.
Cooperative modernization is strengthened through the implementation of the Village Cooperative Management Information System (Simkopdes). This system is a crucial tool in supporting the management of the Merah Putih Cooperative, making it more professional, integrated, and technology-based. Simkopdes is considered capable of strengthening the quality of village economic services while increasing the cooperative’s operational efficiency.
The Assistant Deputy for Digitalization of Cooperatives at the Ministry of Cooperatives, Riza Azmi , stated that all KDKMPs have started using Simkopdes since its launch in July 2025. The implementation of this system is an important step in building the foundation for modern cooperative services that can meet the needs of village communities in the digital era.
Through Simkopdes, cooperatives can provide faster and more transparent services to their members. Data management, business transactions, and financial reporting can be conducted more effectively and measurably. This system also makes it easier for communities to access various cooperative services, thereby making village economic activity more dynamic and productive.
The transformation of cooperative-based village economic services is also beginning to develop in various regions. Local governments view digitalization as a key requirement for cooperatives to expand and reach a wider market. The use of technology is considered capable of accelerating the growth of community businesses while improving the quality of economic services at the village level.
Meanwhile, the Bali Provincial Cooperatives Office noted that of the 716 Red and White Village Cooperatives established, 169 are actively operating. This development demonstrates that digital-based cooperative transformation is beginning to take hold in the region and is having a positive impact on the economic activities of rural communities.
The Head of the Bali Cooperatives Office, Tri Arya Dhyana Kubontubuh , stated that digitalization is now a key requirement for the development of village cooperatives. The use of information technology is considered a crucial part of financial management, business operations, and the marketing of local products. With digital systems, cooperatives can provide more effective economic services and expand the market reach of rural communities.
The Merah Putih Cooperative now serves not only as a community economic institution but also as a center for transforming village economic services into more modern and inclusive ones. The advent of digital technology enables cooperatives to provide faster, more transparent, and more efficient services to the community. This transformation also opens up new opportunities for villages to develop as centers of people-centered economic growth.
Through collaboration between the government, cooperatives, and businesses, the transformation of village economic services is expected to continue to develop sustainably. The digitalization of the Merah Putih Cooperative is considered capable of driving the village economy while strengthening national economic resilience. With the support of digital infrastructure and increased technological literacy, village cooperatives have significant potential to become a key pillar of Indonesia’s inclusive and equitable economic development.
) * The author is a student in Jakarta