By: Aristha Yuliarsih
The government’s strategic move to establish Merah Putih Village Cooperatives deserves praise as a major effort to achieve equitable and just economic distribution. President Prabowo Subianto emphasized that this program is not merely about institutional administration, but rather a grassroots empowerment movement to make villages the center of inclusive and sustainable national economic growth. This vision reflects the spirit of reversing the flow of development—from the center to the regions, from urban to rural, from top-down to bottom-up.
For too long, villages have often been seen as mere accessories in national development plans, despite having enormous potential. According to the Central Bureau of Statistics (BPS), the agricultural sector absorbs around 29% of the national workforce, with rice production reaching 31.10 million tons in 2024. Beyond agriculture, sectors such as fisheries, plantations, and creative industries like weaving, batik, and local food also hold tremendous promise. Unfortunately, this potential has yet to be fully realized due to structural barriers such as limited infrastructure, poor market access, low financial literacy, and economic practices that marginalize rural communities.
In this context, cooperatives serve as a vital instrument to break the unfair distribution chains that primarily benefit middlemen. Cooperatives enable farmers, fishers, and rural MSMEs to obtain fairer and more reasonable selling prices. The presence of Merah Putih Village Cooperatives offers a concrete solution to classic rural problems by providing easy access to capital, relevant training, business mentoring, and connectivity to broader and more profitable markets.
Minister of Cooperatives and SMEs, Budi Arie Setiadi, stressed that cooperatives must be managed professionally, transparently, and accountably. The principle of economic democracy must guide every cooperative activity, where members are both the owners and users of cooperative services. Budi Arie also emphasized that cooperatives are not merely economic tools but also engines for improving the quality of human resources (HR) in villages. This is essential because sustainable economic development cannot be achieved without enhancing the capacity of the people who run it.
The government’s commitment to making cooperatives a central pillar of rural development is embodied in seven core mandates issued by President Prabowo to the Ministry of Cooperatives. These mandates directly address HR development, institutional formation, strengthening of support systems, and management of business units driving local economies. With this approach, cooperatives will go beyond savings and loan entities to become integrated economic service centers.
Secretary of the Ministry of Cooperatives, Ahmad Zabadi, estimated that the plan to establish 80,000 cooperatives would require approximately 400,000 cooperative managers. This indicates a major opportunity for rural job creation. If supporting management and business operators are included, the workforce demand could reach up to 1.2 million people. Each cooperative will have a minimum of five board members, all of whom will receive direct training from the Ministry to ensure they can manage operations effectively and efficiently.
The Merah Putih Village Cooperatives are designed to manage six types of business outlets: basic goods stores, pharmacies, health clinics, cold storage facilities, savings and loan units, and cooperative offices. This is a modern cooperative model that integrates various essential services needed by rural communities. Thus, cooperatives are not just economic entities, but also key to rural food security, healthcare, and social welfare.
To ensure the program aligns with its grand vision, the government has formed an acceleration team led by four ministries: the Ministry of Home Affairs, Ministry of Cooperatives and SMEs, and the Ministry of Agriculture. Coordinating Minister for Food Affairs, Zulkifli Hasan, expressed hope that both central and local governments will share a common vision and take concrete steps to support the formation of cooperatives. An ambitious target has been set: 80,000 cooperatives officially established simultaneously on July 12, 2025.
Regional governments and village leaders are urged to convene special village deliberations as the initial step in forming cooperatives. In these forums, facilitators from the Ministry of Cooperatives will provide technical guidance and explain the legal mechanisms for cooperative establishment. Active participation from rural communities in these discussions is vital to ensure that cooperatives truly belong to and serve the people’s needs.
This progressive step reflects the government’s determination to create a more equitable model of development. The establishment of Merah Putih Village Cooperatives is a transformational strategy—not only for building rural economies but also for strengthening national resilience by empowering the people’s economy. A strong village is the foundation of a resilient Indonesia. When villages move, the nation advances together.
Therefore, Merah Putih Village Cooperatives are more than just an economic initiative; they are a symbol of rural resurgence as the primary subject of development. Through cooperatives, village potential will be unlocked, economic disparities reduced, and prosperity spread more evenly across the archipelago.
The author is a public policy analyst
