Government Ensures Red and White Village Cooperatives Will Become a Driving Force for the Regional Economy
By: Harida Astuti )*
The government is strengthening its regional economic development strategy through the Red and White Village/Sub-District Cooperative (Kopdes Merah Putih) program, which was initiated as a driving force for the local economy. This program is expected to provide a platform for village communities to increase productivity, expand market access, and create sustainable jobs. With a collaborative approach between the central government, local governments, and the community, Red and White Village Cooperatives will not only be an economic institution but also a social instrument to strengthen village solidarity and independence throughout Indonesia.
Minister of Cooperatives (Menkop) Ferry Juliantono emphasized that once the cooperative is operational, it will become a new channel for the government to stabilize food prices. Furthermore, the cooperative will become a grassroots economic institution that directly serves as a distribution channel for programs related to the distribution of social assistance and subsidies to the community.
Furthermore, Ferry reiterated that Red and White Village Cooperatives can also function as an off-taker for community products from the plantation, agriculture, and handicraft sectors. These community products can be stored in warehouses managed by Kopdes (village cooperatives) and then redistributed to the community when price fluctuations occur.
The establishment of Kopdes Merah Putih (Red and White Village Cooperatives) is part of the broader vision of the administration of President Prabowo Subianto and Vice President Gibran Rakabuming Raka to strengthen the people’s economy. The government emphasizes that economic development should not be centered solely in large cities but must begin in villages. Through Kopdes Merah Putih, the potential of natural and human resources in villages is utilized in a more productive, transparent, and digitally-based manner. The ultimate goal is to create a fair and equitable economic ecosystem, where the results of development can be directly felt by the community.
Operationally, Kopdes Merah Putih will function as an integrated economic activity center at the village and sub-district levels. Through this cooperative, residents can manage various sectors such as agriculture, livestock, fisheries, home industries, and digital commerce. The government is also encouraging each cooperative to be connected to the national supply chain, including the provision of raw materials for strategic programs such as the Free Nutritious Meal Program (MBG) and the procurement of local products for community consumption. Thus, the Red and White Village Cooperatives (Kopdes Merah Putih) will become an economic hub that balances production and consumption needs on a national scale.
The local government has also shown strong enthusiasm for the implementation of this program at the local level. The Regent of Boyolali, Agus Irawan, expressed his full support for the development of the Red and White Village Cooperatives (Kopdes Merah Putih). He said the local government has provided a subsidy of IDR 1 million for each Kopdes formed as an initial incentive. This step demonstrates real synergy between the central and regional governments in accelerating the strengthening of the community-based economy. Fiscal support from the local government is expected to stimulate community participation in building cooperatives that are independent, competitive, and oriented towards shared prosperity.
Meanwhile, the Deputy Minister of Cooperatives (Wamenkop), Farida Farichah, emphasized that one of the program’s main focuses is human resource capacity building. Training in business management, financial literacy, and digitalization of cooperatives will be the foundation for ensuring the program’s sustainability. The government is also involving universities and research institutions to support the innovation process at the local level. This approach is expected to produce modern cooperatives that are adaptive to technological developments, without abandoning the value of mutual cooperation, a hallmark of the Pancasila economy.
On the financing side, the government is ensuring full support through cross-institutional synergy. The Daya Anagata Nusantara Investment Management Agency (Danantara) is prepared as a strategic partner to channel productive financing to Red and White Village Cooperatives (Kopdes) throughout the region. Furthermore, state-owned financial institutions such as BRI and Bank Syariah Indonesia will be involved to provide microcredit schemes and low-interest financing. The goal is to alleviate small business difficulties in obtaining capital and enable the village economy to turn faster.
The Red and White Village Cooperatives program is also expected to strengthen national economic resilience by strengthening the domestic production base. By stimulating the economy from the bottom up, the government aims to reduce dependence on imported consumer goods while increasing the added value of local products. In the long term, these cooperatives will be at the forefront of facing global economic challenges, particularly in achieving food and energy self-sufficiency.gi, and creative industries at the grassroots level. The spirit of “from the village for Indonesia” is at the heart of this grand vision.
Going forward, the government is committed to ensuring the Red and White Village Cooperative Program (Kopdes Merah Putih) is implemented in a measurable and accountable manner. Periodic evaluations will be conducted to assess its economic and social impact in each region. With the support of technology, the cooperative’s financial reporting system will be integrated nationally for easy monitoring and evaluation. Through this initiative, Kopdes Merah Putih is expected to become a new symbol of the people’s economic revival, not only fostering prosperity but also strengthening the nation’s economic sovereignty from the village to the national level.
)* Observer of the Digital Economy and Independent Village Transformation
