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Red and White Cooperative: Government Strategy to Develop Rural Economy

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Jakarta – The Indonesian government has launched the Red and White Village Cooperative (Kopdes Merah Putih) program as a strategic step to strengthen the village economy nationally. This program targets the formation of 80,000 cooperatives throughout Indonesia throughout 2025. Kopdes Desa Merah Putih, which will be launched on July 12, 2025 by the government of President Prabowo Subianto, brings new hope as well as major challenges in efforts to build the national economy from the grassroots level.

Youth cooperative figure and former Head of Kokesma ITB, Turino Yulianto said that the Red and White Village Cooperative is a major effort by President Prabowo to transform the economic structure from the previous oligarchic to a people’s economy based on equality.
“This cooperative will play an important role in improving the economic trade system in rural areas and become the most effective means of distributing welfare, as a successful cooperative for managing the village’s superior potential, fertilizer delivery, and other village businesses,” said Turino.

Previously, the Governor of East Java, Khofifah Indar Parawansa, welcomed this initiative and assessed that village cooperatives would be the main driver of economic growth in rural areas.

ŇThe Red and White Village Cooperative will be a new locomotive for village development based on economic independence. With cooperatives, agricultural, livestock, and MSME products can be directly absorbed and managed from the village, no longer dependent on the city,Ó he said.

Khofifah added that cooperatives would shorten the distribution chain and provide added economic value for village communities.

“We want the village community to be the host in their own village. With cooperatives, the community is not only the actor, but also the owner and manager of the joint business,” he said.

Meanwhile, the Minister of Cooperatives and SMEs, Budi Arie Setiadi stated that the government has prepared a funding scheme of up to IDR 5 billion to support the operations of each cooperative.

ŇThis cooperative will be an integrated economic center in the village. Starting from savings and loans, grocery stores, logistics, to village clinics. This will change the face of the village in a short time,Ó he said.

The Red and White Village Cooperative Program is a real manifestation of the spirit of mutual cooperation within a modern economic framework, and is expected to be an important milestone in realizing advanced, independent, and prosperous villages.

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