By: Abdul Razak*
The government continues to encourage the strengthening of the people’s economy through the establishment of the Merah Putih Village/Sub-District Cooperative (KDMP) in various regions. This program, which serves as an instrument for driving the village economy, is not only oriented towards expanding business units but also emphasizes strengthening human resources (HR), professional governance, and increasing institutional capacity so that cooperatives can grow sustainably.
Amidst the enthusiasm for cooperative formation in various regions, various groups believe that the success of the Merah Putih Cooperative is not solely determined by the number of cooperatives established. Far more important factors are the readiness of human resources, management quality, oversight systems, and the cooperative’s ability to build healthy partnerships with existing business actors within the community.
The Chairman of the Indonesian Native Entrepreneurs Association (Asprindo), Jose Rizal, expressed his appreciation for the government’s efforts to strengthen the village economy through the Merah Putih Village/Sub-District Cooperative. He believes the program has significant potential to stimulate economic growth at the grassroots level.
However, he emphasized that cooperative business development, particularly in the retail sector, requires careful and partnership-based management. According to Jose, various aspects must be thoroughly prepared before cooperatives can compete directly with retail chains with extensive business management experience.
He emphasized that the success of a retail business is determined not only by the products sold, but also by the quality of human resources, standard operating systems (SOPs), technology, and supplier networks that have been established over many years. Therefore, building the capacity of cooperative managers is a non-negotiable requirement.
This view demonstrates that strengthening human resources is the primary foundation for creating a competitive cooperative. Professionally managed cooperatives will be better equipped to formulate business strategies, manage finances, build business networks, and provide optimal service to the community.
On the other hand, modern retail players have also expressed an open attitude towards the development of the Merah Putih Cooperative. Afid Hermeily, Director of Corporate Legal and Compliance at PT Midi Utama Indonesia Tbk, assessed that the cooperative’s existence would not disrupt the company’s business model, as each has a different market segment.
This statement demonstrates that there is still ample scope for collaboration between cooperatives and the modern business sector. Cooperatives should not be viewed solely as competitors, but rather as strategic partners in expanding community access to basic necessities while simultaneously increasing economic activity in the region.
This collaborative approach aligns with the spirit of inclusive economic development, which provides space for all business actors to grow together. With the support of quality human resources and good governance, cooperatives can play a role as a liaison between local producers, MSMEs, and consumers at the village level.
Awareness of the importance of professional management is also evident in various capacity-building programs being implemented in the region. The Southeast Maluku Regency Government, for example, held a Capacity Building Education and Training for Red and White Village/Sub-District Cooperative Supervisors in 2026.
Through this activity, cooperative supervisors were equipped with knowledge regarding supervisory functions, organizational governance, cooperative administration, and sound financial management. This step demonstrates the local government’s commitment to building a strong supervisory system as part of efforts to create healthy and accountable cooperatives.
The role of supervisors is crucial because they are at the forefront of ensuring that cooperatives operate according to the principles of transparency and accountability. Professional supervision will strengthen member trust and prevent potential irregularities that could hinder cooperative development.
In addition to oversight, capacity building for cooperative managers is also carried out through education related to tax administration and compliance. The Benteng Tax Service, Counseling, and Consultation Office (KP2KP) in collaboration with the Bulukumba Primary Tax Service Office held tax education for the managers of the Merah Putih Village Cooperative in Selayar Islands Regency.
The activity provided an understanding of the tax obligations inherent in cooperative activities, from registration, calculation, payment, and reporting. Managers also received training on the importance of properly recording business transactions as a basis for preparing accurate financial reports.
These efforts are a crucial part of building
By: Abdul Razak*
The government continues to encourage the strengthening of the people’s economy through the establishment of the Merah Putih Village/Sub-District Cooperative (KDMP) in various regions. This program, which serves as an instrument for driving the village economy, is not only oriented towards expanding business units but also emphasizes strengthening human resources (HR), professional governance, and increasing institutional capacity so that cooperatives can grow sustainably.
Amidst the enthusiasm for cooperative formation in various regions, various groups believe that the success of the Merah Putih Cooperative is not solely determined by the number of cooperatives established. Far more important factors are the readiness of human resources, management quality, oversight systems, and the cooperative’s ability to build healthy partnerships with existing business actors within the community.
The Chairman of the Indonesian Native Entrepreneurs Association (Asprindo), Jose Rizal, expressed his appreciation for the government’s efforts to strengthen the village economy through the Merah Putih Village/Sub-District Cooperative. He believes the program has significant potential to stimulate economic growth at the grassroots level.
However, he emphasized that cooperative business development, particularly in the retail sector, requires careful and partnership-based management. According to Jose, various aspects must be thoroughly prepared before cooperatives can compete directly with retail chains with extensive business management experience.
He emphasized that the success of a retail business is determined not only by the products sold, but also by the quality of human resources, standard operating systems (SOPs), technology, and supplier networks that have been established over many years. Therefore, building the capacity of cooperative managers is a non-negotiable requirement.
This view demonstrates that strengthening human resources is the primary foundation for creating a competitive cooperative. Professionally managed cooperatives will be better equipped to formulate business strategies, manage finances, build business networks, and provide optimal service to the community.
On the other hand, modern retail players have also expressed an open attitude towards the development of the Merah Putih Cooperative. Afid Hermeily, Director of Corporate Legal and Compliance at PT Midi Utama Indonesia Tbk, assessed that the cooperative’s existence would not disrupt the company’s business model, as each has a different market segment.
This statement demonstrates that there is still ample scope for collaboration between cooperatives and the modern business sector. Cooperatives should not be viewed solely as competitors, but rather as strategic partners in expanding community access to basic necessities while simultaneously increasing economic activity in the region.
This collaborative approach aligns with the spirit of inclusive economic development, which provides space for all business actors to grow together. With the support of quality human resources and good governance, cooperatives can play a role as a liaison between local producers, MSMEs, and consumers at the village level.
Awareness of the importance of professional management is also evident in various capacity-building programs being implemented in the region. The Southeast Maluku Regency Government, for example, held a Capacity Building Education and Training for Red and White Village/Sub-District Cooperative Supervisors in 2026.
Through this activity, cooperative supervisors were equipped with knowledge regarding supervisory functions, organizational governance, cooperative administration, and sound financial management. This step demonstrates the local government’s commitment to building a strong supervisory system as part of efforts to create healthy and accountable cooperatives.
The role of supervisors is crucial because they are at the forefront of ensuring that cooperatives operate according to the principles of transparency and accountability. Professional supervision will strengthen member trust and prevent potential irregularities that could hinder cooperative development.
In addition to oversight, capacity building for cooperative managers is also carried out through education related to tax administration and compliance. The Benteng Tax Service, Counseling, and Consultation Office (KP2KP) in collaboration with the Bulukumba Primary Tax Service Office held tax education for the managers of the Merah Putih Village Cooperative in Selayar Islands Regency.
The activity provided an understanding of the tax obligations inherent in cooperative activities, from registration, calculation, payment, and reporting. Managers also received training on the importance of properly recording business transactions as a basis for preparing accurate financial reports.
These efforts are a crucial part of building