Accelerating Physical Development: Government Commitment to the Success of the Red and White Village Cooperative
By: Citra Kurnia Khudori*
The government is currently taking concrete steps to accelerate the physical development of the Red and White Village and Sub-district Cooperative (Kopdes Merah Putih), a program touted as a driving force for the grassroots economy.
Through the signing of a Joint Decree (SKB) between several ministries and institutions this October, the government is ensuring the acceleration of the construction of buildings, business outlets, and warehouses in thousands of villages and sub-districts across Indonesia. This commitment is not simply an infrastructure project, but part of a broader strategy to strengthen the national economic foundation from villages.
The government is targeting the accelerated physical development of the Red and White Village Cooperative, in line with the President’s directive to make cooperatives the new epicenter of economic equality. Minister of Cooperatives Ferry Juliantono emphasized that this acceleration is not only to accelerate physical development, but also to ensure that cooperatives immediately function as distribution channels and stabilize food prices.
He stated that the presence of the Red and White Village Cooperative will be a crucial instrument in controlling inflation at the local level. With a nationally connected network of village cooperatives, the government has a direct channel to ensure more efficient distribution of basic goods and stable prices.
This commitment is also supported by cross-agency synergy. The Ministry of Cooperatives is collaborating with the Association of State-Owned Banks (Himbara) to support funding for physical development. Ferry explained that Himbara will disburse financing of up to IDR 3 billion to each cooperative, covering the construction of warehouses, outlets, and initial operational capital.
From a financing perspective, Himbara’s involvement is a positive step that requires transparency and strict oversight. The IDR 3 billion fund per cooperative must be managed accountably to ensure it is not limited to physical development alone.
The government needs to ensure the allocation of physical and operational capital is proportional, so that cooperatives not only have buildings but also maintain ongoing economic activities. Transparency in the distribution and use of funds is key to maintaining public trust in the cooperative movement.
Danantara Chief Operating Officer Dony Oskaria stated that all cooperatives will be provided with the same facilities and business model. However, in practice, each cooperative can have different needs; some are for farming villages, some for fishing villages, and others, tailored to the needs and output of each village.
Several state-owned enterprises, such as PT Agrinas Pangan Nusantara, are involved in the physical construction phase, while elements of the Indonesian National Armed Forces (TNI) assist with security and expedited work on the ground. This collaborative model demonstrates that the government does not want this program to remain merely on paper, but is truly present on the ground as a symbol of cross-sectoral mutual cooperation.
Physical construction of the Red and White Village Cooperatives (Kopdes Merah Putih) has begun at thousands of locations, and the government aims for all physical outlets to be fully operational by March 2026. This target aligns with the President’s commitment to accelerating equitable economic development, extending to villages.
Equitable physical development is believed to have a ripple effect, creating new jobs while strengthening community purchasing power and revitalizing local economic activity. Each cooperative outlet serves not only as a transaction venue but also as a center of economic activity involving farmers, fishermen, artisans, and MSMEs in the surrounding area.
Home Affairs Minister Tito Karnavian assessed the existence of the Red and White Village Cooperatives (Kopdes Merah Putih) as strategic in distributing government programs and controlling inflation in the regions. He stated that the central government has so far intervened in pricing, which has not necessarily reached villages. Therefore, Kopdes is key.
He added that if Kopdes Merah Putih operates optimally throughout the region, the local economy will grow and inflation will be more stable because market operations can be conducted directly through cooperatives.
In the context of controlling inflation, the existence of cooperatives in villages can spearhead the supply chain for basic necessities. With warehouses and cooperative outlets in villages, the government can reduce logistics costs and shorten distribution channels, thus controlling prices. This step aligns with the national policy of controlling food inflation, which has been a major challenge in various regions.
The government’s move to accelerate the physical development of Kopdes Merah Putih deserves appreciation as a concrete manifestation of its commitment to achieving economic equality. In the grand scheme of national development, villages are no longer passive entities, but rather new centers of growth that determine the nation’s economic strength.
The challenge ahead is to ensure this acceleration does not stop.Focus on the physical level. Cooperative buildings must become vibrant spaces for people’s economic activities. The government needs to strengthen cross-agency synergy, expedite bureaucracy, and ensure transparency at every stage. Furthermore, strengthening human resources at the village level must be a priority so that the cooperatives established are truly independent and competitive.
Thus, the Red and White Kopdes symbolizes the state’s presence through cooperatives, an economic form that best aligns with the character of Indonesian society: mutual cooperation, participation, and justice.
)* Observer of Socio-Economic Issues
