By: Dhita Karuniawati )*
Cooperatives have long been an inseparable part of the Indonesian economic system. Since the era of independence, the spirit of mutual cooperation and togetherness which are the main foundations of cooperatives have been instilled as a real manifestation of the people’s economy. Amid the challenges of globalization, social inequality, and free market pressures, the role of cooperatives is again in the spotlight, especially through the Red and White Village Cooperative program which is believed to be able to become the main driver of the people’s economy in Indonesia.
Red and White Village Cooperative is not just a name. It is a symbol of economic struggle based on nationalism and people’s independence. This cooperative was born from concerns about the economic dominance that is too heavy towards capitalism, where market power is controlled by a handful of large corporations, both foreign and domestic. As a result, small communities, especially MSMEs (Micro, Small, and Medium Enterprises), are often marginalized and have difficulty accessing capital, markets, and technology.
The government plans to launch the Red and White Village Cooperative on July 12, 2025. This cooperative will be built based on the principles of mutual cooperation, kinship, and a spirit of mutual assistance.
Minister of Villages and Development of Disadvantaged Regions (Mendes PDT), Yandri Susanto said that President Prabowo Subianto has ensured that the presence of the Red and White Village Cooperative (Kopdes) will not kill Bumdes operations.
President Prabowo made villages one of the things that needs to be paid attention to for progress, as stated in the sixth Asta Cita, namely “Developing from the Village and from Below for Economic Equality and Poverty Eradication”.
Minister of Villages Yandri also said that the presence of the Red and White Village Cooperative plays a role in controlling the prices of raw materials and basic necessities and breaking the chain of middlemen who are causing trouble for the people.
High-interest loans from loan sharks will be cut off with the existence of Kopdes Merah Putih. This is because one of the business units owned by Kopdes Merah Putih is Savings and Loans.
There are seven business units that are required to be in the ecosystem for establishing the Red and White Cooperative, namely cooperative offices, basic food procurement kiosks, savings and loan business units, village/sub-district health clinics, village or sub-district pharmacies, warehousing or cold storage systems, and logistics facilities.
Yandri also invited all village heads to work together to make the government program a success in order to improve the welfare of the villages.
Meanwhile, Deputy Minister of Cooperatives (Wamenkop) Ferry Juliantono said that the realization of the establishment of the Red and White Village/Sub-district Cooperatives has reached 78,000 cooperatives throughout Indonesia. So it is expected that this week the entire Red and White Village/Sub-district Cooperatives according to the Government’s target will reach 80,000 cooperatives.
Ferry said the Kopes/Kel Task Force will also form 80 mock-ups as a learning place for Kopdes/Kel Merah Putih.
Ferry said, from the internal supervision side, it is carried out by cooperative members, and external supervision including from the Task Force supervision. How is the business process, to approving cooperative financing based on a feasibility study. The formation of the red and white village cooperative is targeted to absorb 2 million new jobs in the village.
Cooperatives Minister Budi Arie Setiadi said that every cooperative formed in a village will require 20-25 workers. So if the government targets 80,000 cooperatives to be formed, then the new jobs that are opened will reach 1.5 million -2 million.
Budi said the establishment of the Merah Putih Village Cooperative directly answered the needs of the village community, especially young people who had difficulty finding employment in the area.
In addition, the Red and White Village Cooperative also addresses the problem of the long supply chain that causes farmers and fishermen to suffer losses. Then, through the Red and White Village Cooperative, access to quality health in the village is also much better.
Budi said the Red and White Village Cooperative could provide health services to assistant health centers and pharmacies that were closer.
No less important, the Red and White Village Cooperative will offer an easier and more transparent savings and loan mechanism. That way, the community is expected to be free from loan shark debt and illegal high-interest online loans (Pinjol).
The Red and White Cooperative emerged as a solution to consolidate the economic power of the people who are spread out, making it a great power that can compete with the global capitalist system. Based on the spirit of nationalism, this cooperative prioritizes ownership and management by the Indonesian people for shared prosperity.
In order for the Red and White Cooperative to truly become the main driver of the people’s economy, synergy between the government, the community, and the private sector is very important. The government needs to provide special incentives for cooperatives that are proven to be productive and have a social impact. In addition, regulations must be simplified so that cooperatives can easily grow and develop.
On the other hand, society must begin to see cooperatives not as mere “savings and loans institutions”, but as a collective forum to build shared prosperity. Cooperative education from an early age is also important to form an entrepreneurial mentality based on togetherness.
The Red and White Cooperative brings a new spirit in realizing an inclusive, fair, and independent people’s economy. With strong core values and the right development strategy, this cooperative is believed to be able to become a great force that not only supports the economy of small communities, but also strengthens the foundation of the national economy as a whole. Now is the time for all elements of the nation to unite to promote cooperatives as the main choice in Indonesia’s future economic development.
*) The author is a contributor to the Indonesian Strategic Information Study Institute
