By: Sukmana Lestari Dhiyara )*
In an effort to accelerate people-based economic growth and reduce poverty in rural areas, the government is preparing an ambitious program: the establishment of 70,000 Red and White Village Cooperatives (Kopdes Merah Putih) throughout Indonesia. This program is expected to be the driving force of the village economy and create a sustainable business ecosystem for the community. With support from various parties, this initiative has the potential to be a concrete solution in strengthening the local economy and making villages the center of national development.
The Governor of East Java, Khofifah Indar Parawansa, welcomed and was optimistic about the launch of this program because Kopdes Merah Putih is in line with the President’s Asta Cita, especially in points two, three, and six which emphasize strengthening the people’s economy and the welfare of village communities. With 70,000 cooperatives in villages, new job opportunities will be created, welfare will be increased, and poverty rates will be reduced.
Khofifah emphasized that this program will be officially launched on July 12, 2025, coinciding with the Peak of National Cooperative Day. This momentum is expected to be the starting point for the revival of cooperatives in Indonesia and strengthen the role of villages as the spearhead of national economic development.
One of the main challenges in developing cooperatives is access to adequate financing. Realizing this, the Revolving Fund Management Institution (LPDB) is ready to provide full support for the sustainability of Kopdes Merah Putih. LPDB President Director, Supomo, emphasized that his party will work with various related institutions to ensure that village cooperatives can develop optimally.
As a cooperative financing institution, LPDB sees this initiative as a breath of fresh air for strengthening the village economy. His party is ready to provide access to capital for village cooperatives, so that they can be independent and become the driving force of the local economy. With an inclusive and affordable financing scheme, village cooperatives can develop productive businesses that are sustainable and have a broad impact on the community.
The Minister of Cooperatives and SMEs, Budi Arie Setiadi, emphasized that Kopdes Merah Putih is part of the government’s strategy to eradicate extreme poverty in the regions. According to him, cooperatives have so far received less attention, even though cooperatives are the economic model that best suits the characteristics of the Indonesian people’s economy.
The success of village cooperatives in boosting the local economy is highly dependent on professional and innovative management. Therefore, mentoring, training, and strengthening of cooperative governance are needed so that they can run effectively. A strong cooperative model is not only oriented towards the welfare of its members, but is also able to create a broader social impact for its community.
In addition, collaboration between village cooperatives and the private sector, BUMDes, and local governments is also the key to the success of this program. With good synergy, cooperatives can develop superior business sectors such as agriculture, fisheries, crafts, and village-based tourism. Village products managed by cooperatives can also have higher competitiveness in national and international markets.
In the agricultural sector, cooperatives can help farmers gain access to subsidized fertilizers, modern agricultural tools, and wider distribution networks. With cooperatives, farmers no longer have to sell their crops at low prices to middlemen, but can directly distribute them to the market at more profitable prices.
In the fisheries sector, cooperatives can help fishermen gain access to better fishing gear and marine product processing technology. Thus, fishery products from the village can have added value before being marketed.
Meanwhile, the craft and creative industry sectors also have the potential to be developed through village cooperatives. With training and mentoring, artisans can improve the quality of their products and reach a wider market through e-commerce and national distribution networks.
Village-based tourism is also one sector that can be promoted by village cooperatives. By developing the potential of natural tourism, culture, and regional culinary specialties, villages can attract local and foreign tourists. Cooperatives can play a role in managing homestays, tour packages, and marketing tourist destinations, so that they are more organized and profitable for the local community.
In facing the digital era, village cooperatives must also utilize technology to increase efficiency and competitiveness. The use of digital applications for financial recording, online marketing, and membership services can help cooperatives become more transparent and modern.
The launch of 70,000 Red and White Village Cooperatives is not only a government program, but also a joint movement in building village economic independence. Success This program will depend heavily on the support and active participation of the community, business world, and other stakeholders. Therefore, a spirit of mutual cooperation is needed to ensure that village cooperatives grow and develop sustainably.
With great potential, Kopdes Merah Putih can be a catalyst for change that drives the economy from villages to cities. This is the time for us all to unite to support cooperatives as the mainstay of the national economy and ensure that prosperity is evenly distributed to all corners of the country. Together, we can build a more independent and prosperous Indonesia through village cooperatives!
)* The author is a public consultant from West Java
