The Merah Putih Village Cooperative Becomes a New Pillar of the People’s Economy in the Prabowo Era
By Anita Yulianti )*
The Merah Putih Village Cooperative is increasingly asserting its position as a new pillar of the people’s economy in the Prabowo Subianto administration. Amidst global economic challenges, regional inequality, and the need to strengthen national economic resilience from the bottom up, cooperatives are once again positioned as a strategic instrument for people-centered development. The emphasis on strengthening village cooperatives is not merely a nostalgic nod to the old concept of mutual cooperation, but rather an adaptive step to address community needs in a concrete and sustainable manner.
This policy direction is reflected in the Ministry of Cooperatives and SMEs’ active efforts to encourage the transformation of cooperatives to make them more relevant to the real needs of the community. Minister of Cooperatives Ferry Juliantono emphasized the importance of establishing cooperatives that are not only institutionally strong but also capable of addressing basic community issues. The inauguration of 10 pilot Red and White Village Cooperative Drug Stores is evidence that cooperatives are now being encouraged to enter strategic sectors that directly address community needs, particularly in the health sector.
The development of cooperative drugstores demonstrates the transformation of cooperatives from mere traditional economic institutions to community-based public service providers. According to Ferry Juliantono, the collaboration between the state, cooperatives, and the business sector in managing drugstores is an example of productive synergy that strengthens both the economic ecosystem and public health. This initiative positions cooperatives as a crucial actor in ensuring the availability of safe, affordable, and legally compliant medicines, particularly those needed by the community in their daily lives.
Furthermore, Ferry Juliantono believes that the Merah Putih Village Cooperative has the capacity to compete fairly with other businesses, both private and state-owned enterprises, as long as it is managed professionally and responsibly. This belief also conveys a message of optimism that cooperatives are no longer viewed as second-class economic entities, but rather as a competitive people’s economic force. The launch of the cooperative drugstore also marks the beginning of the implementation of a new cooperative business model that integrates the principle of mutual cooperation with the actual needs of the community. Cooperatives serve as a bridge between state policies and the needs of residents at the village and sub-district levels, ensuring that development truly reaches the grassroots.
In terms of regional readiness, the development of the Merah Putih Cooperative in Central Java shows an encouraging picture. The Head of the Central Java Regional Office of the Directorate General of Treasury, Bayu Andy Prasetya, stated that all Merah Putih Cooperatives in 8,523 villages and sub-districts have legal entities. This complete legal standing is a crucial foundation for supporting accountable and sustainable cooperative governance. Furthermore, the cooperative’s management and supervisory structures have been fully established, indicating relatively mature institutional readiness.
Strengthening human resources is also a key factor in ensuring the healthy development of cooperatives. Bayu Andy Prasetya believes that various training programs that have reached thousands of facilitators and tens of thousands of cooperative administrators are strategic assets in driving increased income and village economic independence. Without competent human resources, cooperatives risk stagnation and losing member trust. Therefore, investment in human capacity building is a key prerequisite for the future success of cooperatives.
In addition to human resources, the development of facilities and infrastructure at the Merah Putih Cooperative in Central Java also shows a positive trend. This achievement reflects optimism that cooperatives are increasingly ready to become hubs for regional economic distribution. With adequate infrastructure support, cooperatives can act as a link between local producers and consumers, while strengthening the village economic supply chain. This role is crucial for maintaining local economic value and preventing it from being eroded by an unequal distribution system.
Support for the Merah Putih Village Cooperative has also come from the regional legislature. The Deputy Speaker of the Padangsidimpuan City Regional People’s Representative Council (DPRD), Rusydi Nasution, believes that the central government’s plan, through the 2026 Draft State Budget (RAPBN), to position the Merah Putih Village/Sub-district Cooperative as a driving force for the people’s economy, is a strategic step that deserves serious attention. He believes this policy is not only about changing the direction of national development but also concerns regional readiness to respond to new challenges in the people’s economy.
Rusydi Nasution views cooperatives as the best vehicle for ensuring that economic value continues to be enjoyed by village communities. However,He also emphasized that cooperatives must be properly prepared as pillars of village economic development, with professional management and qualified human resources. Without such readiness, cooperatives are likely unable to fulfill their expected strategic role.
Ultimately, the Merah Putih Village/Sub-district Cooperative reflects the new face of the people’s economy in the era of President Prabowo Subianto. With the support of national policies, strengthening regional institutions, improving the quality of human resources, and business innovations that address community needs, cooperatives have a great opportunity to become the backbone of the village economy. If consistency and commitment from all parties can be maintained, cooperatives will not only become a symbol of mutual cooperation, but also a real force in realizing equitable and sustainable public welfare.
)* The author is an economic policy observer
