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Red and White Village Cooperative Pillar of National Economic Revival

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By: Silvia AP )*

The revival of the national economy cannot be realized without involving the Indonesian people. This is where the Red and White Village Cooperative becomes important, not only as an economic entity, but also as a driving force for independence, social justice, and national resilience.

The long history of cooperatives in Indonesia shows that this model has been able to survive in the midst of various crises. However, the challenges of the times demand a renewal of paradigms and approaches. Cooperatives should no longer be seen as lagging economic entities, but rather as modern instruments to strengthen the nation’s competitiveness.

The Red and White Village Cooperative is present as a real manifestation of the spirit of village independence. It is not just a business entity, but also an ideological representation of the ideals of an independent Indonesia: eliminating structural poverty and creating equal prosperity. In this cooperative, village communities are not only consumers, but also producers, owners, and managers. They are actively involved in every economic process, from upstream to downstream.

The strength of this cooperative lies in its community-based system. Village social capital such as trust, emotional closeness, and mutual cooperation values ​​are the main foundations. By utilizing local potential, such as agriculture, animal husbandry, handicrafts, and village tourism, cooperatives are able to integrate the entire economic value chain into one mutually beneficial ecosystem.

The government continues to promote the spirit of village economic independence through the national Red and White Cooperative program, in accordance with the mandate of Presidential Instruction (Inpres) Number 9 of 2025. The target is for 80 thousand cooperatives to be formed and have legal status throughout Indonesia as a new pillar of people’s empowerment.

The Minister of Villages and Development of Disadvantaged Regions (PDT) of the Republic of Indonesia, H. Yandri Susanto said that he had directly reviewed the construction of the Merah Putih Village/Sub-district Cooperative building in Indrasari Village, Martapura. Minister Yandri also witnessed the village deliberation and the formation of the cooperative management which took place in an orderly and enthusiastic manner.

He emphasized that the Ministry of Villages has provided various funding schemes to facilitate the establishment of cooperatives, ranging from CSR budgets, provincial/district government assistance, to village funds. However, the use of funds must be from one source so as not to overlap.

Meanwhile, Banjar Regent, H. Saidi Mansyur said that all villages in Banjar Regency have been socialized since two months ago, and are now moving quickly to carry out special village meetings for the formation of cooperatives.

Saidi said he was ready to fully support this policy and was committed to realizing strong, legal, and professionally managed cooperatives. The Regent also expressed his pride because Banjar Regency received direct appreciation from Minister Yandri as an area that could become a national role model in implementing the red and white cooperative.

The Red and White Village Cooperative is also a space to restore national values ​​that are starting to erode. In this cooperative, the spirit of unity, mutual assistance, and social justice are upheld. It is a counterbalance to the flow of economic liberalization that often ignores humanitarian values ​​and social solidarity.

Furthermore, village cooperatives have great potential in shaping national economic sovereignty. Amidst the dominance of large corporations and global market penetration, cooperatives can be a local economic fortress that is resistant to external shocks. When the world is hit by a crisis, strong cooperatives rooted in the community are able to survive and even grow. This happens because cooperatives do not merely pursue profit, but sustainability and shared prosperity.

Member of Commission B of the East Java Regional People’s Representative Council (DPRD), Chusni Mubarok said that the Red and White Village Cooperative Program will be the main driving force for the revival of the village economy through two strategic sectors, namely food security and tourism. Chusni emphasized that the presence of this cooperative will not cause overlapping authorities as feared by a number of parties in the village.

Therefore, cooperative development cannot run alone. It requires strong ecosystem support, starting from supportive regulations, adequate infrastructure, to ongoing assistance and training. The central and regional governments have a strategic role in creating a conducive climate for the growth and development of cooperatives. However, the role of civil society, academics, and the private sector is no less important in making cooperatives a joint movement, not just a programmatic project.

Red and White Village Cooperative is also able to become a strategic tool to realize sustainable development. With the principle of economic democracy, cooperatives can encourage environmentally friendly agricultural practices, natural resource conservation, and empowerment of women and village youth. Thus, cooperatives not only create economic growth, but also maintain environmental sustainability and social justice between generations.

The momentum of the national economic revival is now the right time to make cooperatives the vanguard of economic transformation. The pandemic and global crisis have opened our eyes that an economic system that is too centralized and dominated by big capital is vulnerable to disruption.

Previously, the President of the Republic of Indonesia, Prabowo Subianto said that this cooperative is not just an administrative matter, but an empowerment movement to make villages centers of inclusive and sustainable growth. By strengthening cooperatives, Indonesia is reaffirming its identity as a nation that is economically independent, independent in development, and sovereign in determining the direction of its future.

)* The author is the editorial team of the Student Press Institute (LPM) Ideas

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