By: Gavin Asadit )*
The government is strengthening the role of Generation Z (Gen Z) as the primary driver in the modernization of the Merah Putih Village/Sub-district Cooperative (Kopdes Merah Putih). Throughout November 2025, various ministries consistently emphasized that the active involvement of young people is a crucial foundation for accelerating the transformation of village cooperatives into a more modern, competitive, and technology-driven ecosystem. The government views Gen Z’s digital skills, creative mindset, and penchant for innovation as significant assets to encourage Kopdes Merah Putih to develop beyond the traditional cooperative model.
The Red and White Village Cooperative Program itself is an implementation of Presidential Instruction Number 9 of 2025 concerning the Acceleration of the Establishment of Red and White Village/Sub-district Cooperatives. The government targets the establishment of 80,000 cooperatives to function as local economic centers, strengthen supply chains, and increase village incomes. In addition to physical development, the government is also prioritizing strengthening human resources, management systems, and technology adoption.
In various official events, Minister of Cooperatives Ferry Juliantono emphasized that the younger generation plays a very strategic role in promoting village cooperatives to become modern and productive economic institutions. He stated that Gen Z possesses high digital literacy, an entrepreneurial spirit, and a creative perspective needed to develop new technology-based business models. He believes these strengths can accelerate the transformation of cooperatives, enabling them to become more than just savings and loans, but also business service centers integrated with digital markets and modern distribution platforms.
Meanwhile, Deputy Minister of Cooperatives, Farida Farichah, also emphasized the importance of strengthening the human resources of cooperative managers, particularly in managerial aspects, financial accountability, and digital marketing. She stated that the government has prepared a training scheme designed to open up more opportunities for the younger generation to become cooperative operators, managers, and product developers. Farida also assessed that the presence of Gen Z in cooperatives will accelerate adaptation to market needs and changes in increasingly digital consumer behavior.
By the end of November 2025, the government reported that thousands of village cooperatives (Kopdes) had entered the initial physical and operational construction phases. Funding comes from a combination of the national budget (APBN), regional budgets (APBD), village funds, and other legitimate sources. The government is also preparing a long-term mentoring model that includes strengthening governance, a digital reporting system, and integrating cooperative data into the national system.
Policy support also came from the Minister of Villages, Development of Disadvantaged Regions, and Transmigration, Yandri Susanto, who stated that the Red and White Village Cooperative is not merely an institutional project but a crucial instrument for promoting village advancement. He believes that youth-led cooperative management has the potential to strengthen villages’ position in the national supply chain, increase the competitiveness of local products, and create new jobs at the community level. He added that collaboration between the central and regional governments, as well as village officials, is essential for sustainable cooperative institutional development.
The inclusion of the younger generation in the cooperative modernization movement is considered to have several positive impacts. First, Gen Z’s digital capabilities open up opportunities for developing e-commerce-based marketing, utilizing data analytics, and content strategies to increase the appeal of village products. Second, youth creativity encourages the development of derivative products from the agriculture, fisheries, and crafts sectors, thereby increasing added value. Third, Gen Z’s involvement strengthens the sustainability of cooperative governance, which has often faced challenges in regeneration.
However, the government recognizes that several obstacles remain, such as infrastructure gaps, uneven managerial skills, and the need for stricter oversight to prevent cooperatives from engaging in poor financial management practices. To this end, the government is developing standardized training modules, a digital-based monitoring system, and intensive mentoring from relevant stakeholders.
Going forward, the government is inviting all stakeholders, including local governments, academics, financial institutions, and young entrepreneurial communities, to collaborate in strengthening the implementation of the Red and White Village Cooperatives (Kopdes Merah Putih). Gen Z’s role is seen as more than just participation, but also as agents of transformation that can move village cooperatives toward a modern, inclusive and sustainable economic ecosystem.
The modernization of the Red and White Village Cooperatives (Kopdes Merah Putih) is believed to be a crucial foundation for achieving village economic independence and narrowing the gap between the central and regional governments. With the involvement of the younger generation as key drivers, the government is optimistic that village cooperatives can become new growth hubs for the national economy.
)* The author is an observer of social and community issues
