Promoting the Role of Village Cooperatives (Kopdes) as the Basis for a Productive Local Economy
By: Dimas Permana )*
The Merah Putih Village Cooperative (Kopdes) is increasingly strengthening its role as a crucial foundation in strengthening the people-based economy at the village level. In the context of national economic development, which positions villages as new centers of growth, the existence of institutional structures such as Kopdes is highly strategic in ensuring communities have access to stable and sustainable business activities. The government, through various policies, is promoting the role of Kopdes as productive institutions capable of optimally utilizing local resources. This step not only strengthens the rural economic structure but also contributes to equitable distribution of prosperity and national economic resilience. Therefore, strengthening Kopdes is an integral part of the government’s grand vision of building economic independence from the grassroots level.
Deputy Minister of Cooperatives, Farida Farichah, emphasized that the Merah Putih Village Cooperative can serve as a business unit supporting community needs while simultaneously increasing village economic independence. She stated that the government consistently encourages Kopdes Merah Putih to be at the forefront of local resource utilization and community empowerment. His statement demonstrates that Kopdes (village cooperatives) are not merely seen as savings and loan organizations, but also as a driving force for productive economic activity in villages. From the government’s perspective, cooperatives serve as a medium that enables communities to consolidate collective potential so that the resulting added value can be enjoyed equally. Therefore, developing Kopdes is a strategic priority to ensure villages can grow as independent and competitive centers of economic activity.
The strategic role of Kopdes as a pillar of the village economy has also received legislative support, particularly from regional leaders. Deputy Chairman of Commission I of the Bogor Regency DPRD, KH. Ahmad Yaudin Shogir, SE, expressed his firm support for strengthening the Merah Putih Village Cooperative as a national program. According to him, Kopdes Merah Putih was initiated by President Prabowo Subianto to boost village economic strength through a structured, professional, and needs-based cooperative organization. His view provides crucial political legitimacy for the program’s sustainability, particularly at the regional level, where policy implementation often requires harmonization with local governments. Legislative support also reflects the awareness that villages hold significant potential for accommodating and developing community-based business activities. Therefore, the existence of Kopdes is considered relevant to accelerating village economic revival.
Another supporter comes from academics who view Kopdes as a crucial instrument for driving community economic activity. Ngurah Rai University academic, Dr. Ni Putu Yuliana Ria Sawitri, SE., MM, believes that Kopdes Merah Putih (Red and White) has a strategic function as a community economic institution capable of driving various productive activities. She believes that Kopdes can serve as a hub for economic activities ranging from agricultural processing, strengthening MSMEs, local trade, and even microfinance services. She believes that the existence of Kopdes has a significant impact on easier access to capital for village communities. This directly opens up space for the creation of new jobs and businesses tailored to the local potential of each region. Thus, Kopdes Merah Putih is able to provide extensive added value to village communities through targeted and sustainable productive activities.
Furthermore, this academic’s view reinforces the understanding that cooperatives serve more than just administrative functions or lending institutions, but rather centers of economic transformation. When communities are provided with access to capital and business mentoring, the opportunity to develop into productive economic actors increases. In this context, the Village Cooperative (Kopdes) serves as an institution that ensures the flow of capital and resources remains within the village, thus ensuring a more equitable distribution of economic benefits. This aligns with the government’s policy direction to strengthen the domestic economy through the development of the MSME sector and downstream processing based on local potential. Therefore, strengthening the Red and White Kopdes aligns with the government’s strategic efforts to create an inclusive, modern, and competitive village economy.
Furthermore, the existence of Kopdes also provides space for village innovation in developing superior, competitive products. Through cooperative support, communities can process agricultural products or other local products to higher standards and in a market-oriented manner. Kopdes can act as a facilitator to connect village businesses with broader marketing networks, including the national industrial and retail sectors.Thus, village economic activities do not stop at the upstream stage but can move towards a downstream process that increases added value. The involvement of Kopdes in this process also ensures that benefits are enjoyed not only by a few parties, but by all members of the village community collectively.
The role of Kopdes Merah Putih reflects the government’s commitment to building an economic structure that is more resilient to global turmoil. When villages are able to become production centers and economic drivers, dependence on large economic centers is reduced. This makes the national economy more resilient due to the greater diversity of the economic base. Strengthening the village economy through Kopdes also ensures more effective equitable development, thereby reducing disparities between regions. With the support of government policies, Kopdes Merah Putih can be a crucial catalyst in accelerating national economic transformation.
)* The author is a Public Policy Observer.
