By: Risma Sucita )*
The government continues to affirm the position of village cooperatives as an essential component of national policy in the people’s economy sector. Through the Red and White Village and Urban Village Cooperative Program (Koperasi Desa dan Kelurahan Merah Putih), the state introduces an economic development instrument rooted directly in the strength of village communities, while simultaneously addressing the challenges of equitable development and national economic self-reliance.
The Red and White Village Cooperative is designed not merely as a business entity, but as a driving node of the village economy capable of consolidating diverse local potentials. The government views villages as centers of production as well as markets that must be managed in an integrated manner so that economic value added does not flow out of the region.
Deputy Minister of Cooperatives Farida Farichah emphasized that the Red and White Village Cooperative serves as a strategic link between village production and market demand. Within the government’s policy framework, cooperatives also play a role in bridging state programs with the real needs of the community, ensuring that people-oriented economic policies are implemented more accurately and effectively.
This approach places cooperatives as integrated village business ecosystems. The government encourages Red and White Village Cooperatives to manage agriculture, fisheries, small enterprises, logistics, and microfinance services within a single, mutually reinforcing, and sustainable system.
Farida explained that the Red and White Village Cooperative should not be understood merely as a physical area or business facility, but as part of the village economic value chain from upstream to downstream. From production and processing to distribution and marketing, all stages are directed to be managed within a professional cooperative ecosystem.
According to the government, the success of cooperatives is largely determined by the quality of governance. Therefore, the Ministry of Cooperatives emphasizes strengthening the capacity of cooperative management and supervisors so that cooperatives are managed transparently, accountably, and with a sustainability orientation. This step is considered crucial to building members’ trust while maintaining institutional health.
In addition to internal strengthening, the government also prioritizes improving cooperative business connectivity with markets. Red and White Village Cooperatives are directed to reach local, national, and digital markets. Through this strategy, village products are expected to have greater opportunities to grow and compete on a broader scale.
Synergy between cooperatives, village governments, and regional governments is an inseparable part of this policy. The government positions cooperatives as an integral element of village development planning. Village heads are assigned the role of cooperative supervisors who facilitate establishment, legal compliance, provision of infrastructure, and the mobilization of productive community participation.
Farida also emphasized the importance of joint supervision in maintaining cooperative accountability. Through the Jaga Desa program, implemented collaboratively with the Attorney General’s Office, the government strengthens the external oversight system. At the village level, supervision is carried out participatively by cooperative members through members’ meetings and transparent financial reporting.
Community involvement in oversight is considered a key factor for the sustainability of Red and White Village Cooperatives. The government views cooperative members not merely as service users, but as owners with a direct stake in the success of the collective enterprise.
From the village institutional perspective, Chairman of the Central Executive Board of the Association of Indonesian Village Governments (Apdesi), Surtawijaya, believes that collaboration between Apdesi and the Ministry of Cooperatives will further strengthen the development and growth of Red and White Village Cooperatives. Village governments are regarded as having a strategic role in ensuring that cooperatives grow in line with local needs and potentials.
This collaboration is deemed important because village governments are at the forefront of mobilizing community participation, utilizing village assets, and synergizing cooperatives with village-owned enterprises (BUMDes), farmer groups, fishermen, and other business actors. With support from central government policies, the role of villages is expected to become increasingly optimal in safeguarding cooperative sustainability.
Meanwhile, Minister of Cooperatives Ferry Juliantono stated that the government is targeting approximately 27,000 Red and White Village and Urban Village Cooperatives to be operational by April 2026. As of early this year, tens of thousands of these cooperatives are undergoing physical development, including warehouses and supporting facilities.
Ferry explained that the government is not only preparing physical infrastructure, but also ensuring the readiness of management, supervisors, and cooperative management information systems. This is intended to ensure that cooperatives can operate effectively immediately after construction is completed.
The government aims to gradually increase the number of cooperatives to reach 80,000 units in accordance with President Prabowo Subianto’s directive. The program was officially launched in July 2025 and has become one of the strategic policies to strengthen the village-based people’s economy.
Within the national policy framework, Red and White Village Cooperatives are expected to serve as engines of village economic growth, strengthen community self-reliance, and promote more equitable economic development across regions. The government considers cooperatives to be the most suitable instrument in line with the spirit of mutual cooperation and the people-centered economy.
Funding for the Red and White Village and Urban Village Cooperative program involves the state budget (APBN), regional budgets (APBD), Village Funds, and support from state-owned enterprises. PT Agrinas Pangan Nusantara (Persero) has been assigned to build outlets, warehouses, and logistics facilities to ensure that cooperatives have adequate infrastructure.
Each cooperative unit receives a financing ceiling of up to IDR 3 billion, with the largest portion allocated for physical development and operational equipment, while the remainder supports initial operational costs. Through this scheme, the government ensures that cooperatives have a strong foundation from the outset of operations.
Through integrated and collaborative policies, the government underscores that the Red and White Village Cooperative is a vital component of the long-term strategy for developing the people’s economy. Cooperatives are positioned as the main drivers connecting village potential, state policy, and sustainable community welfare.
)* The author is a contributor to the Indonesian Institute for Strategic Information Studies