By: Fauzia Nurlaila)
In an effort to strengthen village economies and improve community welfare, the government is promoting the Koperasi Desa Merah Putih (Red-and-White Village Cooperative) program as a strategic measure to encourage economic independence and the prosperity of rural communities. The government continues to ensure that this program runs effectively, with optimal supervision both in terms of transparency and community involvement in cooperative governance.
Deputy Minister of Social Affairs, Agus Jabo Priyono, stated that the Red-and-White Village Cooperative is a strategic step to foster the self-reliance of rural communities. As a new economic entity at the community level, the cooperative is expected to become a vital bridge in transitioning from dependence on social assistance towards sustainable and productive economic empowerment. This initiative is closely linked to efforts to break the cycle of poverty while empowering rural communities.
The positive impact of the Red-and-White Village Cooperative is already being felt. Many farmers have experienced an increase in income thanks to direct access to markets without exploitative middlemen. Fertilizer and seed costs can be reduced through collective purchasing, while harvests are sold at fairer prices due to joint management. In addition, the cooperative also encourages economic diversification through the opening of new business opportunities in agricultural product processing, village tourism, and digital-based MSME services. All of this contributes to the creation of local jobs and strengthens the overall economic resilience of villages.
Governor of East Java, Khofifah Indar Parawansa, stated that the Red-and-White Cooperative is concrete proof of the government’s commitment to strengthening the village economy. The provincial government has expressed readiness to provide technical support and facilitation so that the cooperative can operate effectively and deliver maximum benefits to the community. Through collaboration between the government and the public, the Red-and-White Cooperative is expected to become the driving force of sustainable local economic independence.
Khofifah hopes that the Red-and-White Cooperative can become a model of inclusive economics that empowers rural communities while reducing the economic gap between rural and urban areas. She stressed the importance of transparency, accountability, and innovation in cooperative management so that it can remain competitive and resilient amidst current economic dynamics. She also urged all elements of society to jointly manage the cooperative in the spirit of gotong royong (mutual cooperation) and mutual support.
The Red-and-White Cooperative has also received support from Central Java Province. Central Java Governor Ahmad Luthfi stated that the launch of the Red-and-White Village/Urban Cooperatives is part of an inclusive strategy to advance rural economies. This is a tangible form of gotong royong from, by, and for the people, and it can serve as a driving force for village development.
Active participation from the community as the main actors in the cooperative is the key to the program’s success on the ground. Therefore, the Central Java provincial government encourages the strengthening of entrepreneurship education, digital literacy, and managerial training at the village level so that cooperatives are not only symbols of togetherness but also practical instruments in creating jobs, enhancing the competitiveness of local products, and eradicating poverty systematically.
The inauguration of the Red-and-White Village Cooperative marks a monumental step that signals a new era in village-based national development. It is not merely a legal or economic infrastructure but also a symbol of the people’s sovereignty in managing their own resources. With full support from the legal, financial, and public policy sectors, village cooperatives have great potential to become the backbone of a strong and independent national economy.
The Red-and-White Cooperative will become the driving force of the rural economy, providing fair business capital access, strengthening local distribution, creating jobs, and reinforcing village self-reliance. If governance is maintained properly and cross-sector synergy is continuously optimized, this cooperative will transform into a symbol of grassroots economic revival and bolster national economic resilience.
Village cooperatives must be able to serve as microeconomic hubs connected to both national and even international markets. With adequate technological support, mentorship, and financing access, these cooperatives can grow into professional business entities while staying rooted in local values. This is a golden opportunity for villages across Indonesia to rise—not only as objects of development but as engines of national progress from the very grassroots.
The Red-and-White Cooperative stands as tangible proof of the government’s commitment to strengthening the people’s economy and empowering rural communities. Through cooperation between the central government, local governments, and the public, it is expected that this cooperative can operate effectively and bring maximum benefit to the community. With the cooperative’s presence, villagers can gain access to basic services, business capital, and fairer markets—thus improving welfare and fostering rural economic independence.
This strategic step deserves appreciation as the government’s effort to strengthen the people’s economy from the ground up. When cooperatives grow healthy and productive, villages will prosper—and when villages are strong, the nation will stand firmly in the face of global challenges. The success of this program also reflects the state’s commitment to building community-based economic independence.
*) The writer is a Government Policy Observer