By: Eza Darnawan)*
The government continues to reaffirm the role of village cooperatives as a central pillar of people-centered economic policy. Through the strengthening of Red-and-White Village and Urban Ward Cooperatives (Koperasi Desa dan Kelurahan Merah Putih), the state positions cooperatives not merely as business entities, but as strategic instruments to promote community empowerment, economic equity, and reduced dependence on social assistance.
This policy reflects a new direction in economic development rooted in community strength. The government views village cooperatives as the most relevant platform for collectively mobilizing community potential, while ensuring that economic benefits are directly felt by residents of villages and urban wards.
One concrete step is demonstrated through cooperation between the Ministry of Cooperatives and the Ministry of Social Affairs, which encourages social assistance beneficiary families to gradually become members of Red-and-White Village Cooperatives. This approach is designed as a transition strategy from a social protection model toward economic self-reliance based on productive enterprises.
Minister of Cooperatives Ferry Juliantono explained that this cooperation is part of the government’s effort to support the President’s agenda of lifting beneficiary families out of dependence on aid. By becoming cooperative members, beneficiary families not only receive assistance but are also involved in business activities and gain opportunities to earn additional income from the cooperative’s surplus (SHU).
The government ensures that this cooperation does not remain at the policy level alone, but is followed up through the formation of joint teams tasked with implementing the program in villages and urban wards that are ready to establish Red-and-White Village Cooperatives. Readiness includes institutional capacity, business activities, and the availability of competent human resources to manage the cooperatives.
Minister of Social Affairs Saifullah Yusuf emphasized that this policy is a follow-up to the Presidential Instruction on eradicating extreme poverty and empowering communities through cooperatives. The government considers cooperatives to be the most effective means of sustainably strengthening the economic capacity of poor and vulnerable communities.
In implementation, beneficiary families who already operate businesses will be facilitated to market their products through cooperatives. At the same time, cooperatives will serve as providers of basic necessities for the community. This scheme allows beneficiaries to act not only as consumers, but also as cooperative business owners who gain dual benefits—from consumption access and from the distribution of cooperative profits.
The government also ensures that the selection of cooperatives involved in this program is carried out selectively. Cooperatives that are physically, managerially, and institutionally ready will be matched with the characteristics and needs of each village or urban ward, ensuring effective and well-targeted implementation.
Strengthening village cooperatives has also received cross-sector support. PT PLN (Persero) has stated its full commitment to supporting the President’s priority program to establish 80,000 Red-and-White Village/Urban Ward Cooperatives. This support is realized through the provision of reliable electricity and service innovations specifically designed to enhance cooperative sustainability.
PLN President Director Darmawan Prasodjo explained that PLN has developed a payment and electricity token purchase platform that can be operated by cooperative agents via WhatsApp. Through this scheme, cooperatives can provide electricity payment services directly to households using a simple and efficient system.
The government assesses that this innovation not only makes it easier for communities to access electricity services, but also opens a source of recurring income for cooperatives. Each transaction contributes to operational revenue that can strengthen the cooperative’s financial foundation, especially in areas with large numbers of customers.
With coverage of thousands of households within a single Red-and-White Cooperative area, this scheme is projected to generate steady income to support cooperative business sustainability. The platform is specifically designed for village cooperatives and is not intended for other parties, ensuring that economic benefits remain at the local level.
Beyond the electricity sector, the government is also opening opportunities for village cooperative partnerships in biomass energy development. PLN plans to involve Red-and-White Cooperatives as part of the biomass supply chain for power plant co-firing programs, utilizing palm oil and wood waste as raw materials.
In the food sector, the role of village cooperatives is also being strengthened. Head of the National Nutrition Agency, Dadan Hindayana, expressed hope that more Red-and-White Cooperatives will be involved as suppliers of raw materials for the Free Nutritious Meals Program in 2026. The government views cooperatives as strategic partners to ensure sustainable and high-quality food supply.
Government data show that tens of thousands of suppliers have been involved in the program, with cooperatives serving as one of the key contributors. The number of beneficiaries of the Free Nutritious Meals Program—reaching tens of millions—demands a stable and well-organized food supply chain, in which village cooperatives hold a strategic position.
The government is also targeting an increase in the number of Nutrition Fulfillment Service Units in early 2026, particularly to reach Islamic boarding schools and religious schools. In this context, Red-and-White Village Cooperatives are seen as capable of serving both as raw material suppliers and as drivers of the local economy around nutrition service units.
Overall, the strengthening of Red-and-White Village Cooperatives demonstrates the government’s consistency in positioning cooperatives as a pillar of people-centered economic policy. Through cross-ministerial synergy, collaboration with state-owned enterprises, and support from state institutions, cooperatives are being directed to become the main instruments for community empowerment, poverty reduction, and equitable development.
