By: Fitri Lubis)*
The Merah Putih Cooperatives continue to be promoted as one of the leading initiatives in strengthening local economies and reducing extreme poverty across various regions. The cooperative’s efforts align with the government’s direction to create an inclusive and equitable economic system, especially in areas where community welfare remains low.
Using a community-based approach, the Merah Putih Cooperative has facilitated various small and medium-sized enterprises (SMEs). These include access to capital, business training, and mentoring programs aimed at encouraging economic self-sufficiency. The cooperative’s initiatives are tailored to match the specific needs and economic potential of each region.
Deputy Speaker of the People’s Consultative Assembly (MPR RI), Eddy Soeparno, emphasized the importance of developing Merah Putih Cooperatives as a crucial instrument for empowering the people’s economy—an initiative that deserves broad support. Amid persistent economic disparities and development challenges extending to villages and sub-districts, cooperatives serve not only as a realistic solution but also as a strategic one.
As Eddy noted, Merah Putih Cooperatives are more than symbolic. They represent the tangible embodiment of the spirit of gotong royong (mutual cooperation) in the economy—a core value in Indonesian identity. When the national economy is under pressure, whether due to global or internal challenges, community-based economic structures have proven to be more resilient and responsive to people’s needs. In this context, cooperatives play a central role.
The government has extended full support to the cooperative movement, including Merah Putih Cooperatives, as part of its commitment to a people-centered economy. Various regulations have been issued to simplify licensing procedures, offer tax incentives, and promote partnerships with financial institutions and technical ministries. This positions cooperatives not merely as savings and loan institutions, but as centers of economic growth that reach the grassroots.
The impact of cooperatives on reducing extreme poverty has already begun to show. In several regions, individuals who previously had no stable income have now started their own businesses with capital provided by cooperatives. Local products have reached wider markets, including digital platforms and limited exports. These changes serve as real evidence that cooperatives can be a viable solution to grassroots economic challenges.
Al Muizzuddin Fazaalloh, a policy advisor at the Center for Economic Policy Research and an academic at Brawijaya University, highlighted the importance of establishing 80,000 Merah Putih Cooperatives as part of the Asta Cita vision toward a Golden Indonesia 2045. This is a strong signal that national economic development is now more aligned with the needs of lower-income communities. This grand initiative, which stems from a presidential directive, must be seen as a strategic step in building an inclusive, just, and sustainable economic structure.
The government continues to strive for balanced development between urban and rural areas, although geographical challenges and limited access remain barriers to be gradually overcome. Rural communities are often at a disadvantage in terms of access to economic opportunities, healthcare, education, and infrastructure. By establishing and revitalizing cooperatives at the village level, the Merah Putih Cooperative program can serve as a bridge to address these disparities in tangible ways.
The synergy between cooperatives and national poverty reduction programs is also being strengthened. One key strategy is the integration of data on aid recipients and micro-business actors to enable more targeted and sustainable empowerment. A collaborative approach involving the central government, local governments, and cooperatives is seen as an effective strategy for building a resilient and adaptive local economic ecosystem.
In the long run, cooperatives like Merah Putih are expected to foster economic independence among the people. Reliance on direct cash assistance can be reduced as individuals begin to earn income through their own businesses. At the same time, the growth of cooperatives contributes to job creation, which in turn helps reduce open unemployment.
The statement by Purbalingga Regent Fahmi M. Hanif on the acceleration of Merah Putih Cooperative establishment in all villages reflects leadership focused on practical and sustainable solutions. By emphasizing that cooperatives are not merely formalities, Regent Fahmi demonstrates strong commitment to rural economic empowerment and grassroots welfare improvement.
Although 138 villages have completed their Musyawarah Desa (Village Deliberation Meetings), local governments continue to push for accelerated implementation in remaining villages as part of their commitment to equitable economic development. This data reflects the considerable work still ahead. The Regent’s firm request for sub-district heads and relevant agencies to monitor the cooperative establishment process indicates that there is no room for delay in taking strategic steps with direct impact on villagers’ lives.
The government’s commitment to strengthening cooperatives will not only be maintained but also enhanced. Various affordable financing schemes and institutional support systems have been prepared to expand cooperative outreach to even the most remote areas. Public trust in cooperatives continues to grow through improved transparency and accountability in management.
With strong support and collective effort from all segments of society, Merah Putih Cooperatives are expected to grow into a driving force for the people’s economy and a real solution to extreme poverty. The role of cooperatives goes beyond economics—they symbolize solidarity and national self-reliance.
*) The writer is a Digital Economy Analyst at the Economic Innovation Foundation.
