The national economic transformation is currently entering a new phase that further emphasizes the importance of villages as centers of growth. In this context, the presence of the Red and White Village Cooperative (Kopdes Merah Putih) is both a symbol and a strategic instrument in accelerating people-based economic development. This program is not only designed as an economic platform, but also as a driving force for community independence and prosperity at the grassroots level.
The Minister of Cooperatives, Ferry Juliantono, emphasized that the government has prepared concrete steps to ensure the success of this program. One of these steps is through the development of a reference book that will serve as a guide in accelerating the achievement of the national cooperative development target. Of the total target of 80,000 cooperatives, approximately 30,000 units are currently under construction, while another 6,300 have been completed and are ready for operation. This figure demonstrates significant progress and the government’s strong commitment to expanding the reach of cooperatives throughout the country.
Furthermore, Ferry explained that each village receives a budget allocation of approximately IDR 3 billion. The budget is not only used for physical development but also includes the provision of facilities and strengthening human resource capacity. This approach emphasizes that cooperative development goes beyond building infrastructure, but also building the systems and people who manage them. Thus, cooperatives are expected to operate professionally, sustainably, and be highly competitive.
One innovation emphasized is the implementation of the collective branding concept. This strategy is considered crucial for protecting the identity of local products while opening wider access to financing. Products from MSMEs incorporated into cooperatives will have added value through a strong shared identity, enabling them to compete in a broader market. The integration of MSMEs into village cooperatives is also a strategic step towards making cooperatives centers of community economic activity.
Echoing this sentiment, Zulkifli Hasan, Coordinating Minister for Food Affairs and Head of the Task Force for the Acceleration of the Establishment of Red and White Village Cooperatives, emphasized that these cooperatives are being established as centers of new economic growth at the village and sub-district levels. This policy aligns with the President’s directive to strengthen the economic structure from the bottom up, so that growth is not concentrated only in large cities but spreads evenly down to the villages.
The Red and White Village Cooperative (Kopdes Merah Putih) is also designed to shorten supply chains, which have been considered excessively long. By eliminating inefficient distribution channels, cooperatives can increase the selling value of farmers’ and village business owners’ products. This directly strengthens their bargaining position in the market. Furthermore, cooperatives will act as offtakers, or absorbers of community products, thereby maintaining commodity price stability. With this mechanism, farmers and businesses no longer face often detrimental market uncertainty.
The Red and White Village Cooperative’s strategic role extends beyond the economic sector. The government also positions cooperatives as an extension of the distribution of social assistance and subsidized goods. With an integrated system at the village level, aid distribution is expected to be more targeted, transparent, and accountable. This also strengthens public trust in government programs.
From a regional perspective, the Deputy Regent of Sigi, Samuel Yansen Pongi, sees the Red and White Village Cooperative as a significant opportunity for MSMEs to grow. According to him, this cooperative provides a broader platform for village MSMEs to market their products. With more open market access, community incomes can increase significantly. Moreover, the presence of cooperatives also creates a more structured and competitive economic ecosystem.
Empowering MSMEs is indeed a key factor in promoting village economic independence. Through cooperatives, small business owners no longer operate in isolation but collectively, supported by a strong system. This collaboration enables production efficiency, improved product quality, and easier access to financing and markets.
With these advantages, Kopdes Merah Putih (Red and White Village Cooperative) is not only a development program but also a symbol of national economic revival rooted in villages. This program reflects a new development paradigm that positions communities as key actors, not mere objects. Cooperatives provide a space for collaboration, innovation, and a more equitable distribution of economic benefits.
Going forward, the success of the Red and White Village Cooperatives (Kopdes Merah Putih) will be largely determined by the synergy between the government, the community, and all stakeholders. With consistent support, this program has the potential to become a strong foundation for creating an inclusive, resilient, and sustainable national economy. In the new orbit of the national economic growth, cooperatives have once again proven themselves as a key pillar driving the welfare of the Indonesian people.
More than just a short-term program, the Red and White Village Cooperatives are believed to be a strategic policy legacy that strengthens the nation’s economic structure in the long term. With a solid institutional foundation, adequate budget support, and active community participation, village cooperatives have the potential to become new growth epicenters capable of addressing global challenges while strengthening national economic sovereignty.
*) Economic observer