By: Ricky Rinaldi
The government is further emphasizing the importance of village cooperatives as the backbone of the national economy by accelerating the Red and White Village Cooperatives (Kopdes Merah Putih) program. This program is designed to make villages independent centers of production, distribution, and economic empowerment. Destry Anna Sari, Deputy for Talent Development and Cooperative Competitiveness at the Ministry of Cooperatives, stated that strengthening the human resource capacity of village cooperative administrators and facilitators is a top priority. From October to November 2025, training will be conducted in various provinces, targeting thousands of administrators and facilitators who will professionally manage Red and White Village Cooperatives (Kopdes Merah Putih). The main objective of this training is to ensure that cooperatives are capable of carrying out real economic functions in villages, including the distribution of production inputs, agricultural product management, and market access for local MSMEs.
According to Destry Anna Sari, village cooperatives have strategic potential to shorten the distribution chain, reduce dependence on middlemen, and increase profit margins for village economic actors. With professional management, cooperatives can become centers of local economic activity and a means of community empowerment, where villagers act as owners and democratic economic actors. The Red and White Village Cooperative Program (Kopdes Merah Putih) is expected to create an inclusive, sustainable, and equitable village economic ecosystem, in line with the government’s mission to encourage economic growth from the grassroots level and ensure villages are not left behind.
In addition to strengthening human resources, the government, through the Minister of Finance, Purbaya Yudhi Sadewa, has established regulations to support the program’s smooth implementation. One such regulation is Minister of Finance Regulation (PMK) 81/2025, which requires the establishment of a Red and White Village Cooperative as a prerequisite for disbursing the second phase of Village Funds. This policy was ratified in November 2025 and took effect the same month. Villages wishing to disburse Village Funds must have a legal and operational cooperative. This step demonstrates the government’s commitment to integrating village development funding with strengthening cooperative institutions, ensuring that all disbursed funds are used not only for physical development but also for empowering the community’s economy.
The program aims to have all established Red and White Village Cooperative units fully operational by the end of December 2025. Several village cooperatives have already begun conducting concrete activities, such as distributing agricultural production inputs, providing logistics and basic necessities, storing agricultural produce, and managing MSMEs. The implementation of this integrated cooperative system is expected to shorten the supply chain, stabilize prices, and increase distribution efficiency from villages to regional and national markets. The existence of independent village cooperatives allows communities to gain access to business capital without relying on burdensome commercial financial institutions.
The government recognizes that establishment and regulation alone are not enough. The success of village cooperatives depends heavily on professional management, active member participation, and operational sustainability. The Ministry of Cooperatives and SMEs has initiated mentoring, training, and regular supervision of village cooperative administrators. With a combination of human resource training, funding regulations, and clear operational targets, it is hoped that the end of 2025 will mark a turning point in the transformation of the village economy throughout Indonesia.
The Red and White Village Cooperatives (Kopdes Merah Putih) is designed not simply as a savings and loan institution, but as an integrated economic network encompassing the distribution of agricultural production inputs, farm product management, storage, distribution of basic necessities, and market access for farmers and MSMEs. Farmers and local businesses can sell products at fairer prices, while consumers receive more stable prices for basic necessities. This system promotes village economic independence and strengthens national food security.
The involvement of two key officials, Destry Anna Sari and Purbaya Yudhi Sadewa, reflects cross-ministerial synergy. Coordination between the Ministry of Cooperatives and the Ministry of Finance ensures that regulations, human resource training, and village funding are aligned, ensuring the professional and sustainable operation of cooperatives. This program demonstrates that the government is not only concerned with establishing cooperatives from an administrative perspective, but also ensures their implementation on the ground in accordance with the principles of efficiency, transparency, and tangible benefits for the community.
The socio-economic impact of this program is already evident in several villages. With the establishment of the Red and White Village Cooperatives, village economic actors have a platform for savings, access to capital, market products, and obtain more efficient logistics and food distribution services. This creates an inclusive village economic ecosystem, strengthens the competitiveness of local products, and improves community welfare. The existence of independent village cooperatives is expected to reduce the economic gap between villages and cities and strengthen equitable development.National unity.
Overall, the government is optimistic that through strengthening human resources, regulatory support, funding integration, and continuous operational oversight, the Red and White Village Cooperatives (Kopdes Merah Putih) will become a real driver of national production. This program not only focuses on economic growth but also builds collective awareness among village communities as independent, participatory, and responsible economic actors. If all elements are implemented consistently, the Red and White Village Cooperatives have the potential to spearhead village economic development, providing tangible benefits to residents, supporting food security, and promoting economic equality throughout Indonesia.
Looking at the data and program implementation through October–November 2025, we are optimistic that village cooperatives can become a strong foundation for the national economy. The success of this program demonstrates that village cooperatives are not merely administrative institutions, but also drivers of the people’s economy from the grassroots, strengthening national economic resilience, and contributing directly to community welfare.
*)Strategic Issues Observer
