By: Ricky Rinaldi
The government continues to strengthen the foundations of the people’s economy through the development of the Merah Putih Village Cooperative as a strategic instrument to promote local products and penetrate broader markets. This policy is designed not simply as an administrative program, but as a national strategy to strengthen the village economic structure, expand market access, and sustainably improve community welfare. The government positions cooperatives as the backbone of the distribution, production, and marketing of superior village products to prevent them from being trapped in an unbalanced supply chain.
Indonesian President Prabowo Subianto emphasized that national economic development must begin in villages as the nation’s social and economic strength. He views cooperatives as not only business entities but also instruments of economic sovereignty capable of protecting farmers, fishermen, artisans, and small businesses from unfair trade practices. In various policy directions, the President emphasized the importance of strengthening village economic institutions so that communities become not only producers of raw materials but also capable of independently managing, packaging, and marketing products with higher added value.
According to President Prabowo Subianto, the Merah Putih Village Cooperative is designed to be an integrated center for village economic activity, from procurement of production facilities and processing to distribution and marketing. He believes that many high-quality village products are unable to compete in the market due to limited access to capital, technology, and distribution networks. Through strong and professional cooperatives, the government is committed to ensuring that local products are no longer marginalized but instead become a key part of the national supply chain.
The President also highlighted the importance of transforming cooperative governance to adapt to changing times. He emphasized that cooperatives must be managed professionally, transparently, and accountably to build trust among members and business partners. The government will continue to provide support in the form of regulations, financing, and strengthening the human resource capacity of cooperatives to ensure village cooperatives become truly modern, competitive, and highly competitive economic institutions.
Furthermore, President Prabowo Subianto views strengthening village cooperatives as part of the government’s broader strategy to build national economic independence. The nation’s economic resilience cannot rely solely on large-scale industrial and urban sectors, but must be supported by a strong, independent, and organized people’s economy. In this context, the Merah Putih Village Cooperative is positioned as a crucial hub connecting village production with national needs, as well as a bulwark against global shocks and international market uncertainty.
In line with this policy direction, Minister of Women’s Empowerment and Child Protection Arifah Fauzi emphasized that the Merah Putih Village Cooperative also plays a strategic role in encouraging the empowerment of women and vulnerable groups in villages. She believes that cooperatives can provide a safe and productive space for women to develop businesses, improve skills, and expand access to economic resources. In various cross-sectoral policies, her ministry encourages village cooperatives to actively involve women in management structures, production, and marketing activities.
Arifah Fauzi believes that local products produced by women, such as processed food, handicrafts, and creative products, have significant potential to compete in a wider market if supported by a strong cooperative system. She emphasized that women’s economic empowerment not only increases family income but also directly contributes to improving children’s quality of life and strengthening the social resilience of rural communities. Thus, village cooperatives serve not only as an economic instrument but also as a means of protecting and empowering families.
According to Arifah Fauzi, strengthening village cooperatives must be accompanied by increased human resource capacity, particularly for women entrepreneurs. The government is encouraging cooperatives to provide training in entrepreneurship, financial literacy, business management, and the use of digital technology for product marketing. With this support, village women will not only become workers but also independent, innovative, and competitive entrepreneurs.
In the context of child protection, Arifah Fauzi also emphasized that improving family welfare through cooperatives has a direct impact on fulfilling children’s rights. When families’ economies strengthen, the risk of children dropping out of school, working at an early age, or experiencing social vulnerability can be significantly reduced. Therefore, her ministry views the Red and White Village Cooperative as part of the national strategy to build resilient families and a superior generation.
With clear policy direction, cross-sector support, and a strong commitment from the government, the Merah Putih Village Cooperative has the potential to become a key driver of village economic transformation. Local products will no longer be positioned as second-class commodities, but as national assets with strategic value for national development. The state will be present not merely as a regulator, but as a facilitator and protector of the people’s economy.
If this policy is implemented consistently and sustainably, villages will become not only production bases but also centers of innovation and entrepreneurship. Local products will be promoted, cooperatives will strengthen, and community welfare will significantly improve. Through the Merah Putih Village Cooperative, the government demonstrates that equitable, inclusive, and sustainable economic development is not just talk but is being realized in the community.
*)Strategic Issues Observer
