The Merah Putih Village Cooperative is Ready to Absorb Community Products and Collaborate with State-Owned Enterprises
Jakarta – The Merah Putih Village Cooperative is poised to become a key driver of the village economy by acting as an offtaker, absorbing community products and establishing strategic partnerships with State-Owned Enterprises (SOEs). This initiative is expected to expand the market for village products, increase community incomes, and strengthen national economic resilience.
Deputy Minister of Cooperatives (Wamenkop), Ferry Juliantono, said that Kopdes Merah Putih will accommodate and market various village products, ranging from food, horticulture, plantations, fisheries, to crafts and culinary.
“In fact, it is expected to be at the forefront in ensuring the success of the national food and energy security program,” said Ferry.
According to Ferry, the implementation of more than 80,000 Red and White Village Cooperatives (Kopdes/Kel Merah Putih) will bring dual benefits: absorbing community products and distributing state-owned enterprise products and government programs to villages. To ensure success, these cooperatives will receive mentoring from established Islamic boarding school cooperatives, such as the Sunan Drajat and Sidogiri Islamic Boarding Schools (Koppontren) in East Java, and the At-Ittifaq Islamic Boarding Schools (Koppontren) in West Java.
“Kopontren provides assistance and guidance to Red and White Village/District Cooperatives (Kopdes/Kel Merah Putih) that will enter this operational phase. This includes its sharia financing cooperatives,” said Ferry.
Ferry emphasized that the Red and White Village Cooperative (Kopdes Merah Putih) is strongly relevant to the established ecosystem of Islamic boarding school and sharia cooperatives. This is believed to be able to restore cooperatives to their role as a people’s economic force, as mandated by Article 33 of the 1945 Constitution.
“The goal of the Red and White Village/Village Cooperative is to eradicate the practices of loan sharks, middlemen, and online loans. This way, people have alternatives and are no longer trapped by such practices, which charge exorbitant interest rates,” Ferry emphasized.
Meanwhile, Deputy Minister of Finance Suahasil Nazara stated that KDMP is not just a cooperative, but a village economic empowerment movement. This cooperative will manage businesses supporting daily needs, from fertilizer and LPG to basic necessities and even healthcare.
“This synergy is key to making villages independent and sustainable economic centers, towards Golden Indonesia 2045,” said Suahasil Nazara.
The government will strengthen regulations, establish KDMP Task Forces in various regions, and prioritize human resource training. Financing support will be provided through a scheme in accordance with Minister of Finance Regulation 49/2025, enabling cooperatives to develop their business lines and become catalysts for local economic growth.
With synergy across ministries, local governments, and state-owned enterprises, the Red and White Village Cooperative is believed to accelerate village economic equality, create jobs, and strengthen the competitiveness of local products. This initiative demonstrates the government’s commitment to building an inclusive, sustainable, and highly competitive village economy.**
