By: Samuel Sanjaya )*
The Red and White Cooperative Outlets currently being built nationwide are now a new foundation for strengthening the village-based economy. The government positions cooperatives as a key pillar in driving community economic activity, making each outlet more than just a building but a symbol of the state’s presence in facilitating community economic independence. Over time, this program has demonstrated significant achievements, particularly in legality and fiscal administration. A total of 79,182 legally incorporated village cooperatives now have Taxpayer Identification Numbers (NPWPs) and are registered in the Coretax system.
This information was conveyed by Director General of Taxes Bimo Wijayanto in a working meeting with Commission XI of the Indonesian House of Representatives, stating that this figure is equivalent to 95.6 percent of the total number of village cooperatives nationwide. This registration is seen as direct government support for the priority policies launched by President Prabowo Subianto and Vice President Gibran Rakabuming Raka. The presence of the Merah Putih Cooperative is also strengthened by Presidential Instruction Number 17 of 2025 concerning the acceleration of physical development of outlets, warehouses, and supporting facilities for village and sub-district cooperatives. The government targets all these facilities to be fully operational by 2026.
Cooperatives Minister Ferry Juliantono explained that his ministry had signed a Joint Decree with several ministries and institutions to ensure accelerated development. The Ministry of Finance, the Ministry of Villages, the Ministry of Home Affairs, the State-Owned Enterprises Agency (BP BUMN), and BPI Danantara are also involved in strengthening management and operational support. The Ministry of Public Works has even been engaged for technical supervision regarding the physical construction of outlets and warehouses to ensure uniform building standards and meet national operational needs.
In terms of funding, the construction of the village cooperative outlets was carried out through corporate financing obtained by PT Agrinas Pangan Nusantara from the Association of State-Owned Banks. This financing includes physical construction, operational vehicles, supporting facilities, and working capital for the cooperative. The maximum financing value that cooperatives can access is IDR 3 billion, so that cooperatives at the village level not only have building facilities but also sufficient initial capital to carry out business activities. President Director of PT Agrinas Pangan Nusantara, Joao Angelo De Sousa Mota, detailed that the cost of building a single cooperative outlet building is around IDR 1.6 billion, and this figure is considered reasonable based on the varying building price indexes in each region.
By mid-November 2025, PT Agrinas Pangan Nusantara had completed the construction of 15,788 village cooperative outlets and warehouses across various regions. This figure is equivalent to approximately 16 percent of the total national target. Although the daily realization remains below the ideal target, development continues to be accelerated with stricter monitoring and strengthened resource distribution. This achievement demonstrates the government’s unprecedented development efforts in the village and sub-district cooperative sector. The simultaneous construction of thousands of facilities is clear evidence that village economic development is now moving with a systematic approach and oriented towards national equity.
The established cooperative outlets are expected to function as local economic centers. These outlets will provide savings and loan services, logistics distribution, marketing of village MSME products, and the provision of affordable basic necessities. The government is encouraging these outlets not to operate passively but to become village economic hubs connected to the broader market. Strengthening the role of these outlets aligns with the government’s focus on ensuring that economic development is not concentrated solely in large cities but rather moves from villages as new growth centers.
Several policy observers believe that the success of village cooperatives is determined not only by physical structures but also by village-level management capabilities. Yanuar Nugroho, a lecturer at the Driyarkara School of Philosophy, emphasized that a national-scale program involving multiple actors requires strong governance. The capacity of cooperative management, product marketing, logistics integration, and financing risk management must be strengthened so that village cooperatives serve not merely as facilities but as engines of the people’s economy. The government needs to ensure that cooperatives are managed professionally through mentoring, training, and ongoing monitoring.
With the entire policy ecosystem now in place, the Merah Putih Cooperative plays a crucial role in expanding the village economy. The presence of physical outlets gives small businesses the confidence to engage in larger economic activities. The government is strengthening access to financing, markets, and logistics, enabling villages to become independent centers of economic activity. At the same time, villagers directly benefit from employment, increased production by village MSMEs, and easier access to basic necessities.
The Merah Putih Cooperative Outlets are proof that national economic equality can begin in the villages. With good governance, consistent mentoring, and full support from central government policies, village cooperatives have the potential to become solid economic pillars. The outlet development is not just a physical project but the foundation for transforming the people’s economy. If implemented sustainably, this national initiative will transform villages into a new force for the Indonesian economy.
)* Observer of People’s Economy