By: Rizky Kurniawan )*
The government has emphasized the direction of its economic development policy, which is increasingly village-focused, by accelerating the formation of the Merah Putih Village Cooperative. This step is seen as a key strategy for strengthening the economic independence of rural communities while simultaneously expanding equitable national growth.
The Merah Putih Village Cooperative was designed as an economic instrument that goes beyond savings and loans. The government positions cooperatives as the center of village economic activity, capable of linking production, distribution, and consumption within a mutually reinforcing ecosystem.
Coordinating Minister for Food Affairs Zulkifli Hasan has expressed his commitment to accelerating the formation of village cooperatives. The government aims to have tens of thousands of village cooperatives fully operational by March to April 2026, with adequate facilities and systems ready to serve community needs.
This target reflects the government’s commitment to ensuring that village cooperatives do not stop at administrative aspects. The government wants cooperatives to exist as truly active economic institutions that have a real impact on the welfare of village residents.
Under the proposed scheme, the Merah Putih Village Cooperative serves as a distribution hub for agricultural products and community-based businesses. The government views strengthening distribution at the village level as key to increasing the added value of local products and protecting small producers from dependence on long supply chains.
Through cooperatives, micro-entrepreneurs and rural farmers gain more secure market access. Local products can be distributed more efficiently, while rural communities obtain basic necessities at more affordable and stable prices.
The government also positions village cooperatives as a means of bringing basic needs closer to residents. This approach aims to create a fair economic system, where communities are not just buyers but also part of the managers and owners of businesses.
The integration of the Merah Putih Village Cooperative with various government programs is a key element of this policy. The government utilizes cooperatives as partners in strengthening the food supply chain, distributing basic necessities, and developing village- and sub-district-based productive businesses.
This integrated approach aims to create a sustainable village economic ecosystem. The government believes that village development requires strong economic institutions so that the benefits of policies can be directly felt by the community.
This policy direction aligns with the government’s ongoing transformation of social assistance distribution. Minister of Social Affairs Saifullah Yusuf emphasized that, starting in 2026, social assistance will be directed toward promoting the economic independence of beneficiary families, rather than simply meeting short-term needs.
The government is encouraging beneficiary families to directly participate in productive business activities through the Merah Putih Village Cooperative. This involvement is expected to transform aid recipients into active players in the village economy.
Through cooperatives, beneficiary families are guided to market their products while simultaneously meeting basic needs. This scheme allows them to act as both consumers and producers within a mutually beneficial economic system.
The government views this role shift as a strategic step to reduce dependence on social assistance. By directly participating in cooperatives, beneficiary families have the opportunity to build more sustainable sources of income.
Furthermore, cooperative membership entitles them to a share of the remaining business profits, which are distributed periodically. The government ensures that all cooperative members, including beneficiary families, receive economic benefits based on the principles of togetherness and justice.
Minister of Cooperatives, Ferry Juliantono, believes this policy opens up new opportunities for increasing the income of recipient families. Involvement in cooperative business activities is believed to strengthen family finances and foster a sense of ownership in collective village businesses.
The government views the Merah Putih Village Cooperative as a vehicle for social and economic transformation. The cooperative serves not only as a place for transactions but also as a space for empowerment, business learning, and strengthening village community solidarity.
By accelerating the formation of village cooperatives, the government seeks to ensure inclusive economic growth rooted at the local level. Villages are positioned as new growth centers with a strategic role in national development.
With cross-sectoral policy support, institutional strengthening, and active community involvement, the government is optimistic that the Merah Putih Village Cooperative can become a driving force for the village economy. This approach is expected to strengthen national economic resilience while realizing more equitable and sustainable development.
In the medium term, the government believes the success of the Merah Putih Village Cooperative will serve as a benchmark for the effectiveness of community-based development. Cooperatives are seen as capable of bridging state interests and the real needs of village communities through transparent and participatory economic mechanisms.
The government also ensures institutional support and capacity building for cooperative managers to ensure professional operations. With good governance, village cooperatives are expected to not only survive but also thrive as economic entities trusted by the community.
Through this acceleration, the government is optimistic that villages will no longer be on the fringes of development, but will instead become centers of productive, independent, and sustainable economic activity.
*) Researcher of People’s Economy – Nusantara Economic Institute