By: Zhafran Goldwin*
President Prabowo Subianto’s administration has begun to demonstrate a more assertive direction for people’s economic policy, rooted in the principle of national independence. One prominent instrument in this policy landscape is the strengthening of the Red and White Cooperatives (KMP) as a collective economic vehicle designed to address the challenges of inequality, limited access to capital, and the dominance of the economic structure by large groups. The presence of KMP is positioned not merely as a sectoral program, but as part of a larger architecture of economic development oriented toward the people, domestic production, and equitable distribution of prosperity.
In recent decades, cooperatives have often been perceived as traditional economic entities left behind by the dynamics of the modern market. However, KMP presents a different approach. This cooperative is designed as an economic institution that is adaptive to current developments, utilizing technology, strengthening governance, and building integrated business networks from upstream to downstream. This approach demonstrates that cooperatives are no longer positioned as complementary but as key actors in the national economic system.
This new direction of people’s economic policy reaffirms the Pancasila economic philosophy, which places togetherness and social justice as the foundation of development. The Cooperative Cooperative (KMP) is projected to be a vehicle for consolidating the economic potential of communities, from farmers and fishermen to MSMEs and informal sector workers. With a shared ownership model, business profits are not accumulated by a few parties but are redistributed to members and communities, creating a multiplier effect for the local economy.
The KMP also reflects the government’s commitment to strengthening the domestic economy amidst global uncertainty. Global economic pressures, fluctuating commodity prices, and geopolitical dynamics require Indonesia to strengthen its economic foundations from within. Through cooperatives, communities are encouraged to become both producers and consumers within a mutually reinforcing ecosystem. This aligns with efforts to reduce dependence on imports and increase the role of domestic products in the national market.
In the context of village and regional development, the KMP plays a role as a driver of the local economy. These cooperatives are designed to harness the region’s superior potential in the agriculture, fisheries, small industry, and service sectors. With integrated policy support, cooperatives serve as a link between community production and the broader market. This scheme is expected to cut through long and inefficient distribution chains, allowing added value to be enjoyed directly by producing communities.
The Ministry of Cooperatives (Kemenkop) is consolidating and evaluating the duties of the Project Management Officers (PMOs) of the Merah Putih Village/Sub-District Cooperatives (Kopdes/Kel). This consolidation aims to oversee the accelerated construction of warehouses and outlets for the Merah Putih Kopdes/Kel throughout Indonesia and to strengthen the PMO’s role in managing Kopdes/Kel in an orderly, focused, and accountable manner.
Minister of Cooperatives (Menkop) Ferry Juliantono emphasized the need to strengthen the alignment of PMOs’ actions at the central, provincial, and district/city levels in overseeing the Merah Putih Kopdes/Kel.
Ferry further stated that managing 83,128 Merah Putih Kopdes/Kel, supported by 1,104 PMOs across the central, provincial, and district/city levels, faces various challenges, ranging from time constraints, the vastness and complexity of the region, to the dynamics of cross-sector coordination and high public expectations.
Despite these conditions, the integrity, discipline, and consistency of the PMO are crucial. The PMO must continue to operate in accordance with regulations and uphold good governance, which will be the key to success.
In the long term, strengthening cooperatives is expected to create a more balanced national economic structure. The dominance of large businesses is not eliminated, but rather complemented by a strong and independent cooperative network. Synergy between cooperatives, MSMEs, and national industry is key to creating a competitive and equitable economic ecosystem. With such a structure, the national economy will be more resilient to external shocks.
The KMP also carries an ideological message of economic sovereignty. By prioritizing shared ownership and collective management, cooperatives are the antithesis of exploitative economic practices. The values of economic nationalism are embodied in concrete forms through the strengthening of people’s businesses and the utilization of national resources for the common good. This approach aligns with the grand vision of building an independent and economically sovereign Indonesia.
The challenges in implementing this policy are certainly not easy. Strengthening cooperatives requires policy consistency, cross-sectoral coordination, andIt requires a long-term commitment. However, with a clear policy framework and systemic support, KMP has great potential to become a driving force for the people’s economy. The success of this cooperative will be largely determined by active community participation and the cooperative’s ability to adapt to constantly changing economic dynamics.
Overall, President Prabowo Subianto is said to be satisfied and pleased with the various developments achieved by his administration, including the progress of KMP. This was conveyed by the Presidential Chief of Staff, Muhammad Qodari, who stated that KMP’s progress has now entered the stage of building outlets in several locations.
Furthermore, President Prabowo is also said to be highly optimistic about the government’s achievements in the 2026–2027 term, believing that various development targets can be achieved gradually and sustainably. By placing the people as the primary subject of development, this policy is expected to create economic growth that is not only high, but also equitable, sustainable, and firmly rooted in the nation’s own strengths.
*) The author is a Content Writer at Redline Econova Digital
