Red and White Cooperative Becomes Government’s Strategic Instrument to Improve Village Welfare
By: Eleine Pramesti )*
The presence of the Red and White Cooperative is concrete evidence of the government’s efforts to make villages the subject of development, not just objects of policy recipients. The Red and White Cooperative was born from a collective spirit to strengthen the economic base of the people rooted in the village. In the midst of the currents of modernization and globalization that often erode local identity and village economic independence, this cooperative is a fortress that maintains the values of togetherness while also being an engine of economic growth for village communities.
Deputy Minister of Cooperatives (Wamenkop), Ferry Juliantono emphasized that the Red and White Village Cooperative program, a flagship initiative of President Prabowo Subianto’s government, is a rural economic solution that will not burden the State Budget (APBN). Ferry said the program was designed to create a new economic ecosystem in rural areas that is mutually beneficial, while breaking the chain of loan sharks and online loans (pinjol) that are detrimental to rural communities.
One of the main strengths of the Red and White Cooperative lies in its ability to build a healthy economic ecosystem at the village level. Through cooperatives, communities are invited to not only become consumers, but also producers and active players in the economic value chain. Starting from local food production, management of agricultural and plantation products, to the development of creative products based on local culture, all are directed to have high added value. This approach provides space for inclusive economic growth, where economic benefits are not only concentrated on one party, but are distributed fairly to all members of society.
The Red and White Cooperative also plays a strategic role in opening market access and capital for village business actors. Many MSME actors in the village have had difficulty reaching a wider market due to limited networks and information. Through cooperatives, they are facilitated to enter a more efficient distribution system, including reaching the digital market which is now a necessity.
Deputy Minister of Agriculture (Wamentan), Sudaryono said the Government is targeting the establishment of 80 thousand Red and White Village Cooperatives throughout Indonesia, which will be launched on July 12, 2025. Minister of Cooperatives and Small and Medium Enterprises Budi Arie Setiadi estimates that the budget needed to establish 80 thousand Red and White Village Cooperatives (Kopdes Merah Putih) will reach around IDR 400 trillion.
The figure covers all aspects needed to build and manage cooperatives in various villages throughout Indonesia. With this ambitious target, each Red and White Village Cooperative is expected to gain significant profits, reaching up to Rp 1 billion per year.
In the long term, cooperatives also have the potential to become a main pillar in achieving national resilience. When villages are able to be economically independent and not fully dependent on cities, the distribution of development will be more balanced. This is important to reduce the gap between regions which has been one of the classic problems of Indonesian development. Cooperatives as people’s economic institutions become a collective force that is able to create social and economic stability evenly, while strengthening the nation’s food, energy, and cultural resilience.
Red and White Cooperative also strengthens the synergy between villages and the central and regional governments. Through cooperatives, government development programs can be channeled in a more targeted and measurable manner. Transparency and accountability in the management of cooperatives make them trusted partners in managing public funds and other strategic programs. Thus, cooperatives are not only a means of production, but also an effective and efficient policy implementing agent. In the era of climate change and global environmental challenges, cooperatives also play a role in encouraging environmentally friendly economic practices.
The ongoing digital transformation at the national level is also a great opportunity for cooperatives to expand their reach and improve service efficiency. By utilizing information technology, cooperatives are now able to manage member data more neatly, manage finances with a digital system, and market products through online platforms. This opens up the potential for cooperatives to compete in a wider market, even penetrating the international market with high-quality village products.
In addition, the Government launched the official digital platform kopdesmerahputih.kop.id as a center for independent registration of the Red and White Village Cooperative (KDMP). The Minister of Cooperatives or Menkop, Budi Arie Setiadi said that the launch of this platform was the result of a meeting with the KDMP Task Force (Satgas) held at the Coordinating Ministry for Food. Budi Arie emphasized the importance of utilizing digital technology in the entire process of establishing the Red and White Village Cooperative (KopDes Merah Putih) or Red and White Cooperative.
Through a comprehensive approach based on real needs in the field, the Red and White Cooperative has proven itself as a strategic instrument capable of integrating economic, social, and cultural aspects into a harmonious whole. Villages that were once marginalized now have a great opportunity to become new centers of economic growth based on the principles of social justice and independence. With more and more cooperatives growing and developing, the future of villages in Indonesia is no longer a narrative of backwardness, but a story about the rise and sovereignty of the people’s economy.
)* The author is an observer of strategic issues
