By: Ricky Rinaldi )*
Amid the government’s focus on strengthening the people’s economy, the birth of the initiative to establish the Red and White Village Cooperative or Kopdes Merah Putih is proof of the seriousness in building the economy from the grassroots. This program carries the spirit of cross-sector collaboration, involving the government, national banks that are members of the State-Owned Bank Association or Himbara, and village communities as the main actors. The main goal is to form village cooperatives that are strong, independent, and directly connected to the national economic system.
Himbara’s role in this program is not just as a financing provider, but also as a partner in strengthening institutions. Banks such as BRI, Mandiri, BTN, and BNI are involved to assist the process of transforming villages into centers of cooperative-based economic activities. This step is believed to be a new model of village empowerment that does not depend on state assistance, but instead encourages independence through productive partnerships.
The Minister of Cooperatives and SMEs for the 2019-2024 period, Teten Masduki, was the first person to design the Kopdes Merah Putih program. He emphasized that the formation of this cooperative would not use a budget from the APBN, but rather all funding would come from bank loans. The government is tasked with creating an ecosystem that supports cooperatives to grow professionally and competitively, not by providing direct subsidies. This approach also shows that cooperatives are treated as business entities that must have a realistic business plan, not just recipients of assistance.
After his term of office ended, this program was continued by the Minister of Cooperatives and SMEs in the Prabowo-Gibran Cabinet, Budi Arie Setiadi. He emphasized his commitment to expanding the scope of cooperatives by converting around 64 thousand Gapoktan or Farmer Group Associations into Merah Putih cooperatives. According to him, village cooperatives must be present to intervene in the supply chain so that the added value of farmers’ and small business actors’ production can be maximized. He also considered that modern cooperatives must be managed with professional management and digital technology, so that they are able to answer the challenges of the times and strengthen the position of small business actors in the national and global markets.
The Red and White Cooperative was designed with a bottom-up approach. Village communities were first invited to map their local economic potential, both in the agriculture, fisheries, plantations, crafts, and tourism sectors. This potential is then managed collectively through primary cooperatives. These village cooperatives are then connected in a secondary cooperative network at the district and provincial levels. With this structure, cooperatives are able to build economies of scale, competitiveness, and strong, mutually supportive inter-regional networks.
In its implementation, Himbara banks play an important role not only in financing, but also in the process of assessing the feasibility of cooperatives. They help prepare business plans, conduct financial management training, and assist cooperatives in implementing transparent governance. Bank Rakyat Indonesia or BRI, which has long been known as a pioneer in financing the micro and village sectors, is at the forefront of supporting this program. Meanwhile, Mandiri, BTN, and BNI also play a role in providing financing schemes that are tailored to the characteristics of cooperatives and their regions.
The main difference between this approach and the previous program is the emphasis on the principle of business feasibility. Cooperatives that want to get financing from Himbara must show a mature business plan, a good management system, and clear potential returns. This is done to ensure that cooperatives grow not only in quantity but also in quality. The government and banks together ensure that the cooperatives that are formed are truly able to stand on their own two feet.
This step is also in line with the principle of sustainable development. Because cooperatives are based on local potential, the use of resources is carried out more wisely and efficiently. Villages are no longer just providers of raw materials, but rather become centers for processing and distributing products with high added value. This also reduces dependence on middlemen and intermediaries who often suppress the prices of farmers’ products.
The benefits of the Merah Putih cooperative are not only economic, but also social and cultural. When villagers form a cooperative, they not only manage a joint business, but also rebuild the values of mutual cooperation, deliberation, and trust. Business decisions are taken together, profits are shared fairly, and risks are borne collectively. These values strengthen social ties in the village while creating economic stability that is more resilient to market fluctuations.
In the long term, the government hopes that the Merah Putih cooperative can become the backbone of the national economy. With a large mass base and a structured business system, cooperatives have the opportunity to become a people’s economic force that is able to compete nationally and internationally. The government is present as a facilitator, not the main actor. This shows that development does not have to be fully controlled from the center, but can be driven from the village with the support of the right policies.
The presence of Himbara as an active partner also shows that national banking has a strategic role in the development of the people’s economy. Banks do not only focus on corporate customers, but also on empowering the lower classes through the cooperative system. This synergy between the government, banking, and society is an example of an inclusive and collaborative development model.
The initiative to establish the Red and White Cooperative is also a symbol that the government is not remaining silent in the face of economic inequality and market domination by large groups. By empowering rural communities through cooperatives, the government provides space and tools for people to be economically independent. If managed seriously and consistently, cooperatives can become real instruments of social and economic change.
With the spirit of collaboration from the center to the village, this program is real evidence that Indonesia’s economic development is no longer based only on macro-figure growth, but also on equality and empowerment of the people. The Red and White Cooperative brings new hope to villages throughout Indonesia so that they can grow together, be independent, and become an important part in realizing Indonesia Emas in the future.
*)Strategic Issues Observer
