Government Optimistic About the Potential of Merah Putih Village Cooperatives to Drive National Economy
By: Maskawi Syaifuddin (*)
The Indonesian government is actively promoting the establishment of Merah Putih Village/Kelurahan Cooperatives (Kopdes Merah Putih) as part of its community-based economic development strategy. This initiative is designed to strengthen the economic structure of villages through cooperatives that are managed in a modern and integrated way. By involving the community directly, this program is expected to expand access to various economic services and improve local welfare. The government believes that this community-driven approach will have a significant impact on the equitable growth of the national economy.
These cooperatives are designed to be multifunctional service centers providing basic needs, primary healthcare services, financial services, and logistics storage. Their presence demonstrates that the government is not just building from the center to the regions, but is genuinely bringing the state to the grassroots level—the village. The spirit of mutual cooperation and togetherness, which is characteristic of Indonesian society, serves as the foundation for the formation of these cooperatives.
The Minister of Cooperatives and SMEs, Budi Arie Setiadi, believes that each Kopdes has the potential to generate up to one billion rupiah per year. With a target of establishing 80,000 cooperatives, the government optimistically projects that the potential cumulative profits nationwide could reach IDR 80 trillion annually. This confidence reflects the government’s view that cooperatives are not just ordinary economic institutions, but long-term social investment instruments capable of driving the economy sustainably.
This optimism is not without basis. The government has prepared adequate supporting infrastructure, including the launch of the official website kopdesmerahputih.kop.id, which will serve as the national information and data hub for the formation and development of village cooperatives. This website not only simplifies the registration process but also functions as a national dashboard that monitors the entire cooperative formation process, from village deliberation, members’ meetings, to the official establishment of cooperatives. All data will be presented in real-time and managed by a special Task Force under the direct coordination of the Ministry of Cooperatives.
These steps demonstrate the government’s seriousness in building modern and transparent cooperative governance. The digitalization process through the national dashboard is an innovation that is not only efficient but also ensures transparency for all stakeholders, including the village communities themselves. This innovation proves that the government is able to synergize the spirit of grassroots democracy with advances in information technology, enabling cooperatives to be managed professionally and results-oriented.
The Deputy Minister of Agriculture, Sudaryono, emphasized that the establishment of these cooperatives is a demonstration of the government’s commitment to the people. Through the Kopdes Merah Putih, the state directly provides economic access to village communities in the form of grocery stores, pharmacies, village clinics, cold storage, and savings and loan businesses. All of these services will be funded by the state through the national budget (APBN), truly reflecting the presence of the state in the everyday lives of village communities.
Beyond just economic infrastructure, the presence of Kopdes Merah Putih also carries a strong ideological dimension. It embodies the ideals of President Prabowo Subianto, who wants to ensure that development is felt equitably, even in the most remote areas. On several occasions, the President has stressed that village cooperatives are a strategic instrument in building food security and increasing economic independence at the village level. With cooperatives as the backbone, villages are no longer mere objects of development but active subjects in determining their own growth direction.
The timing of the launch of these cooperatives is also strategic. The 80,000 Kopdes are scheduled to be launched on National Cooperative Day, July 12, 2025, marking a historic milestone in the national economic transformation based on villages. The choice of this date is symbolic, showing that the government wants to make cooperatives a central symbol of the nation’s economic revival, starting from the most fundamental level: the village.
The presence of Kopdes Merah Putih will not only strengthen village economies but also create a new economic ecosystem based on the principles of togetherness, social responsibility, and sustainability. The government does not position these cooperatives as competitors to the private sector but as complements and enhancers of the local economic structure. With a community-based cooperative model, the distribution of profits will be more equitable, having a direct impact on the surrounding communities.
The government also sees great potential in terms of efficiency in distribution and controlling the prices of basic necessities through the cooperatives. When essential goods can be sold in villages at affordable prices with maintained quality, people’s purchasing power will automatically increase, and local inflationary pressures can be reduced. This shows that cooperatives are not just economic tools, but also part of the government’s macro policies to maintain price stability and ensure the availability of goods.
This step demonstrates that the government is not merely talking about equitable development but is genuinely implementing it through concrete policies. By relying on village cooperatives as the locomotive of the people’s economy, Indonesia is now moving towards a more just, participatory, and sustainable development path. In this context, the presence of Merah Putih Village Cooperatives is a true reflection of the government’s commitment to building the country from the periphery to the center.
(*) Economist from Pancasila Madani Institute
