*) By: Dimas Eka Permana
The Red and White Village Cooperative Program (Kopdes Merah Putih) is a strategic intervention to address structural employment issues at the village level that have not been optimally addressed. Villages often face limited economic access, low productivity, and minimal sustainable job creation. Therefore, Prabowo Subianto’s projected establishment of 80,000 cooperatives by 2029 is a fundamental step in encouraging the reactivation of village employment. This program not only establishes economic institutions but also revitalizes community-based productive activities. With a collective approach, villages are positioned as new growth centers capable of absorbing significant labor.
Furthermore, this program goes beyond establishing formal economic institutions and directly targets massive job creation. Zulkifli Hasan explained that each cooperative is estimated to be able to directly employ an average of 20 workers, so if 80,000 units are successfully established, the potential employment will reach approximately 1.6 million people. This figure does not even include the multiplier effect from downstream sectors such as livestock, horticulture, and MSMEs linked within the cooperative’s production chain. Thus, the Red and White Village Cooperatives not only create jobs but also build a productive village economic ecosystem. This emphasizes that villages have the capacity to become centers of new economic growth.
Furthermore, the government’s move to recruit 30,000 cooperative managers demonstrates its commitment to ensuring professional governance. According to Zulkifli Hasan, Coordinating Minister for Food, this recruitment is part of a strategy to systematically strengthen the economic resilience of villages and sub-districts. Successful managers will be placed under the auspices of PT Agrinas Pangan Nusantara under a two-year Fixed-Term Employment Agreement. This status places them within the State-Owned Enterprise ecosystem, which maintains high performance standards. With this approach, cooperatives are no longer viewed as traditional entities, but rather as modern, professionally managed economic institutions.
Meanwhile, Joao Angelo De Sousa Mota, President Director of PT Agrinas Pangan Nusantara, emphasized that the presence of professional managers at the village level is a key factor in ensuring efficient and profitable cooperative operations. The managers’ primary focus goes beyond administrative tasks, but also on ensuring the cooperative’s ability to become a new economic driver at the local level. With the right managerial approach, cooperatives are expected to be able to compete in increasingly complex market dynamics. This also addresses the classic challenges faced by cooperatives in Indonesia, which frequently face governance issues. Therefore, professionalization is a crucial foundation for the sustainability of this program.
Previously, President Prabowo Subianto emphasized that cooperatives are a strategic instrument for uniting the economic power of smallholders to ensure equal bargaining power in domestic and global markets. This consolidation opens up broader job opportunities because economic activity is no longer fragmented. With collective strength, cooperatives are able to create larger-scale businesses, requiring more workers. This directly contributes to the reactivation of previously limited rural employment opportunities. Thus, cooperatives serve as a structural solution for expanding community-based employment opportunities.
The reactivation of village employment through the Red and White Village Cooperative (Kopdes Merah Putih) also creates stronger local economic stability. When jobs are consistently available, the purchasing power of villagers increases, driving a stronger economic cycle. This creates a productive cycle that strengthens the sustainability of cooperative businesses while expanding the need for labor. Thus, this program not only creates jobs but also maintains their sustainability through mutually reinforcing economic mechanisms. This is crucial to prevent villages from experiencing economic stagnation again in the future. This stability is an indicator that the reactivation of employment is effective.
Furthermore, a cooperative-based approach allows for a more equitable distribution of jobs at the village level. Unlike centralized economic models, cooperatives encourage broad community participation in production and distribution activities. This opens up employment opportunities for various groups, including small farmers, micro-entrepreneurs, and unskilled workers. Thus, job reactivation is inclusive and reaches a wider segment of society. This model also strengthens village economic resilience by eliminating reliance on a single sector. Job diversification is key to maintaining village economic sustainability.
Ultimately, the Red and White Village Cooperatives (Kopdes Merah Putih) represents a comprehensive strategy for systematically and sustainably revitalizing rural employment. The potential creation of 1.6 million jobs is concrete evidence that this program is capable of addressing real employment challenges. The Red and White Village Cooperatives (Kopdes Merah Putih) are expected to become productive economic centers capable of absorbing a broad and sustainable workforce. If implemented consistently and measurably, the Red and White Village Cooperatives (Kopdes Merah Putih) will become a key pillar in strengthening the national village-based employment structure.
*) Cooperative Development Consultant Observer.
