The Merah Putih Village Cooperative Presents a Mutual Cooperation-Based Village Financing Solution

By: Arka Dwi Francesco*)

The government, through the Merah Putih Village Cooperative (Kopdes) program, has reaffirmed its commitment to strengthening the economic foundations of the people from the grassroots level. This program is not merely an administrative policy, but rather a concrete step towards realizing economic independence based on mutual cooperation. By establishing village cooperatives as centers of economic activity, the government is encouraging the emergence of an inclusive, equitable, and accessible business ecosystem for all levels of society. This initiative also demonstrates that the national development strategy is being implemented comprehensively, with the benefits directly felt by the community on the ground.

Coordinating Minister for Food Affairs, Zulkifli Hasan, stated that the Merah Putih cooperative should be understood as a symbol of the revival of a family economy based on Pancasila. He believes that cooperatives should not be viewed merely as a means of managing funds, but rather as an instrument for changing the mindset of the community, encouraging them to become entrepreneurs. He believes that businesses established by cooperatives must be simple, tailored to community needs, and provide direct benefits to villagers.

This perspective emphasizes that the essence of village development is self-reliance. When communities become productive entrepreneurs, villages become not merely recipients of aid, but centers of economic growth that support cities and surrounding areas. Thus, villages can become driving forces, ensuring more equitable and sustainable national growth.

Furthermore, State-Owned Enterprises Minister Erick Thohir emphasized that the Ministry is ready to provide full support for strengthening village cooperatives. He stated that village cooperatives are not only economic institutions, but also symbols of mutual cooperation and community independence that can shorten the distribution chain and open up new economic access in rural areas. He added that SOE support is a form of state support for the community, ensuring the realization of the principle of social justice.

This demonstrates that synergy between government institutions will create a complementary ecosystem. When villages are supported by adequate infrastructure and strong institutional mechanisms, the result is more productive and independent villages. Ultimately, the welfare of village communities will improve and make a real contribution to national development.

Meanwhile, Minister of Cooperatives (Menkop) Budi Arie Setiadi explained that the government is committed to carrying out the President’s mandate to develop national cooperatives through various strategic efforts. He stated that cooperatives are an important means of realizing social justice and public welfare, as stipulated in Article 33 of the 1945 Constitution. Through the Red and White Village Cooperative program, it is hoped that cooperatives will be present in every corner of the country, from villages to cities, as drivers of an inclusive economy. Cooperative Minister Budi also encouraged cross-sector collaboration to implement the program’s operations to ensure equitable development and strengthen the people’s economy.

This demonstrates the government’s strategic and comprehensive approach. This commitment demonstrates that economic development at the local level is seen as the spearhead of equitable and active community empowerment. The presence of cooperatives in every village will foster an inclusive and sustainable business ecosystem, while collaboration between the central and regional governments and cooperative communities ensures more accountable and effective governance.

The relevance of this program is increasingly felt amidst global economic challenges. As inflation looms, supply chains are disrupted, and inter-regional disparities increase, village cooperatives are seen as a solution capable of restoring villages as food distribution centers, creating new business opportunities, and ensuring stable prices at the community level. Thus, the Red and White cooperatives function not only as local financial institutions but also as driving forces for social and economic transformation that delivers tangible benefits to the wider community.

Furthermore, the existence of cooperatives can also strengthen the position of villages as centers of national food security. Through cooperatives, access to financing, procurement of production equipment, and distribution of agricultural products can be more efficient. Villages are no longer dependent on middlemen or long distribution chains that disadvantage farmers. Instead, they can provide a practical solution to the classic problem of farmers who have struggled to access capital and markets. With a mutual cooperation model, risks can be shared, and benefits can be shared equally.

From a social perspective, the Merah Putih cooperative provides broader participation. Village communities are given the opportunity not only to become members but also to oversee and determine the direction of cooperative policy.

This strengthens the culture of economic democracy that is a hallmark of the Indonesian nation. When communities are empowered to manage and oversee their own cooperatives, a sense of ownership, responsibility, and social solidarity grow, strengthening the structure of village communities.

Economic development from the village level is a visionary strategic step. The Merah Putih Village Cooperative serves as a bridge between national ideology, institutional technical support, and a strict oversight system. With a mutual cooperation approach, cooperatives are not merely economic tools but also a means of empowering communities as a whole. When villages advance through healthy and independent cooperatives, Indonesia will be stronger. It’s time for the community to unite in supporting this program, because only with prosperous villages can the ideals of Indonesia Emas 2045 be realized.

)* The author is a government policy observer.

Comments (0)
Add Comment