By: Gavin Asadit)*
The Indonesian government continues to accelerate the national strategic program in the form of the establishment of Red and White Cooperatives (Kopdes MP) in all villages and sub-districts. This program aims to strengthen the economy of rural communities, reduce the price of basic necessities, and eradicate the practice of loan sharks that have been detrimental to residents. Until early June 2025, more than 30,000 cooperatives have been established and have legal status in various regions of Indonesia.
The Red and White Cooperative is a flagship program of President Prabowo Subianto’s government which is stated in Presidential Instruction (Inpres) Number 9 of 2025. The government is targeting the establishment of cooperatives in 80,000 villages and sub-districts which will be officially launched on July 12, 2025 to coincide with National Cooperative Day.
The Minister of Villages and Development of Disadvantaged Regions, Yandri Susanto, stated that this cooperative is not only a place to distribute cheap basic necessities and direct cash assistance (BLT), but also aims to break the chain of middlemen and loan shark practices that shackle the economy of rural communities.
The local government also took part in making this program a success. One of the regions that made extraordinary achievements was South Kalimantan. The South Kalimantan Provincial Government succeeded in achieving 100 percent cooperative formation in 2,015 villages and sub-districts. The Governor of South Kalimantan, H. Muhidin, said that this achievement was the result of cross-sectoral cooperation and a follow-up to the direction of the central government to complete the formation of cooperatives before the national launch in July 2025. This acceleration reflects the strong commitment of the local government in supporting the economic independence of rural communities.
Progress is also seen in eastern Indonesia. West Papua recorded the readiness of 969 villages to implement the Red and White Cooperative program. Of that number, 258 villages have received socialization, and 215 villages have held village deliberations as part of the cooperative formation process. Deputy Governor of West Papua, Mohamad Lakotani, stated that the existence of this cooperative will be very important in strengthening economic independence and shortening the distribution chain of community needs in remote areas.
In Papua Province, by the end of May 2025, all 948 villages and 51 sub-districts have been touched by the program socialization. A total of 628 villages have held Special Village Deliberations (Musdessus) and 143 cooperatives have been officially formed, with 24 other cooperatives still in the process of notary approval. The Papua provincial government is committed to completing the legalization process of all cooperatives in the near future in order to accelerate direct benefits to the community.
The Red and White Cooperative is designed to be the main pillar in the transformation of the village economy. This cooperative offers affordable basic needs services, such as basic necessities and subsidized fuel, and provides access to savings and loans with low interest rates. The presence of this cooperative is expected to be able to reduce the price of basic necessities in the village, which has tended to be high due to the long distribution chain.
Minister Yandri Susanto said during his visit to Papua that this cooperative will become the center of the economy, social, and even health services in the village. The party is also optimistic that the establishment of the Red and White Village/Sub-district Cooperative will have a significant impact in reducing the price of goods which have been relatively high throughout the Papua region.
In addition to its role in the distribution of logistics and social assistance, the Red and White Cooperative is also projected to become a center for business activities and the development of MSMEs. In this cooperative, the community can market local products such as agricultural products, handicrafts, and processed food products. The existence of a strong cooperative will facilitate the marketing of village products to the national and even international markets.
However, the implementation of this program also faces a number of challenges. Several regions experienced obstacles in the socialization stage, the implementation of deliberations, and the cooperative legalization process. To answer this challenge, the government formed a National Task Force for the Acceleration of the Establishment of Red and White Village and Sub-district Cooperatives chaired by Coordinating Minister for Food Zulkifli Hasan. This task force involves related ministries and institutions and is supported by experts, extension workers, and village assistants throughout Indonesia.
Meanwhile, the synergy between the central government, regional governments, and the community continues to be strengthened to ensure that the program runs according to target. Massive socialization is carried out through various media and village forums so that the entire community understands the long-term benefits of this cooperative. The government also encourages active community participation in managing cooperatives democratically and transparently.
Technological support is also a serious concern for the government in making digital cooperatives a success. Special applications are being developed to facilitate thecooperative management, financial transparency, and distribution of goods. This is expected to reduce the risk of embezzlement and increase efficiency and public trust in cooperatives.
Minister Yandri Susanto also stated that the success of the Red and White Cooperative program is highly dependent on the commitment and collaboration of all parties. He hopes that this cooperative will not only be a short-term project, but will become the foundation of a sustainable village economy. In the long term, this cooperative is targeted to be able to create jobs, increase village community income, and encourage national economic growth from the grassroots.
The Red and White Cooperative Program is a symbol of the spirit of mutual cooperation of the Indonesian nation in strengthening the economy from below. With a transparent, structured, and participatory system, this cooperative has great potential to become the spearhead of independent, prosperous, and competitive village development.
)* The author is an observer of social and community issues
