Presidential Instruction on Merah Putih Cooperatives Accelerates Economic Equity and Food Self-Sufficiency
By: Dewi Anggi Permata
Presidential Instruction (Inpres) No. 9 of 2025 on the Acceleration of the Establishment of Merah Putih Village and Subdistrict Cooperatives is a strategic initiative by President Prabowo Subianto’s administration aimed at accelerating equitable rural economic development. With a target of establishing 80,000 Merah Putih Cooperatives across Indonesia, this policy is not only a concrete manifestation of the government’s commitment to empowering the people’s economy but also a vital pillar in achieving national food self-sufficiency and rural independence in line with the Vision of Golden Indonesia 2045.
Through these cooperatives, villages that previously served solely as production bases will transform into distribution hubs and economic service centers. Each cooperative is mandated to operate seven core business units: a cooperative office, basic goods kiosk, savings and loan unit, health clinic, pharmacy, cold storage, and logistics facilities. This diversification not only generates broad economic value but also directly addresses the basic needs of rural communities. In this context, cooperatives are not merely economic entities but also social institutions that foster community solidarity and self-reliance.
Deputy Minister of Cooperatives, Ferry Julianto, stated that these cooperatives have the potential to generate profits of up to 90% from professionally managed business units. Of course, this potential greatly depends on the quality of management and the capacity of the human resources operating them at the local level. Therefore, digital-based training and human resource development initiated by the Ministry of Cooperatives form a crucial foundation for ensuring sustainability and effectiveness.
Meanwhile, Minister of Villages, Yandri Susanto, emphasized flexibility in the policy’s implementation. Villages with fewer than 500 residents are allowed to merge and form joint cooperatives. This collaborative approach reflects a policy sensitive to real conditions on the ground and ensures inclusivity in the program’s execution.
Institutionally, inter-ministerial and inter-agency coordination is critical to the success of this program. The Ministry of Villages and Underdeveloped Regions is tasked with land provision and community outreach, while the Ministry of Cooperatives facilitates business model development and HR training. On another front, the Coordinating Ministry for Food Affairs is pushing for the fast-track establishment of cooperatives that are ready to operate simultaneously by mid-July 2025. This is a concrete example of stakeholder synergy in building community-based food sovereignty.
Deputy Minister of Villages, Ahmad Riza Patria, stressed that the success of these village cooperatives heavily depends on the collaboration of the village communities themselves. The central government, he noted, merely provides guidance and regulation, while implementation is entrusted to the villages, tailored to their unique characteristics, potential, and challenges. This bottom-up approach creates space for village innovation and strengthens the spirit of gotong royong (mutual cooperation), a core value in rural development.
In a broader context, Merah Putih Cooperatives are also expected to strengthen existing village economic institutions such as Village-Owned Enterprises (BUMDes). In many cases, these cooperatives can be synergized with or serve as revitalized versions of older village cooperatives. Thus, Merah Putih Cooperatives are not standalone entities but integral parts of a holistic village development ecosystem.
Supportive policies through financing from Village Funds, the State Budget (APBN), and Regional Budgets (APBD) further reinforce cooperatives’ roles as drivers of local economies. For example, the presence of cold storage and village logistics systems will reduce losses for farmers caused by long and inefficient distribution chains, while increasing the bargaining power of village agricultural and fishery products in the market. In the long term, these cooperatives will serve as direct links between villages as producers and markets as consumers, eliminating exploitative middlemen.
The issuance of this Presidential Instruction also reflects the government’s commitment to reshaping food security strategies in a more participatory manner. Rural self-reliance in food production, affordable basic goods distribution, and basic healthcare provision will directly contribute to achieving national food self-sufficiency. More than that, it represents a strategy to strengthen the national economy from the periphery by positioning villages as new economic growth centers.
President Prabowo Subianto’s bold move aligns with the spirit of structural reform that places the people at the heart of development. By placing cooperatives at the core of rural economic activity, the government is restoring the original spirit of cooperatives as the backbone of the national economy—not merely as policy add-ons.
Building 80,000 village cooperatives is no small feat. However, with a clear policy foundation, well-planned institutional structure, and strong government commitment, Merah Putih Cooperatives have the potential to become a historic milestone in national development. More than just economic institutions, these cooperatives symbolize the people’s economic sovereignty and embody the spirit of Indonesia’s gotong royong.
By maintaining synergy between the central government, regional administrations, and village communities, the Merah Putih Cooperative Presidential Instruction will become a solid foundation for the emergence of independent, prosperous, and economically sovereign villages. This is the path to a grand vision: Golden Indonesia 2045, starting from the villages.
The author is a Cooperative Practitioner
