By: Juana Syahril)
The realization of the Merah Putih Village/Subdistrict Cooperatives marks an important turning point in Indonesia’s village-based economic development. This program is not merely the establishment of new economic institutions, but a structural strategy to elevate village independence, strengthen local competitiveness, and ensure equitable welfare distribution down to the grassroots level. Through the cooperative approach, villages are no longer positioned merely as recipients of assistance, but as the main actors in national economic development.
Minister of Cooperatives, Ferry Juliantono, stated that the Merah Putih Village Cooperatives (Kopdes Merah Putih) are designed as a new economic ecosystem that functions as a center for managing village potential as well as a showcase for local products. The realization of these cooperatives is expected to transform rural economies from previously fragmented systems into integrated, professionally managed, and sustainability-oriented structures. All economic potentials—ranging from agriculture, fisheries, and livestock to handicrafts and culture-based services—will be consolidated within a strong institutional framework.
The presence of Kopdes Merah Putih not only strengthens village economic activities, but also builds a more modern and accountable governance system. Communities are actively involved as members as well as owners of the cooperatives, fostering a sense of collective responsibility for the success of joint enterprises. Through this model, rural economic independence is built from within, rather than imposed from outside.
In the implementation phase, regional governments are encouraged to map leading potentials in each village. This identification serves as the basis for designing cooperative business units that align with local characteristics. Minister Ferry Juliantono emphasized that the Ministry of Cooperatives is ready to provide financial support, technical assistance, and managerial capacity-building to ensure that village cooperatives can grow optimally.
One of the main objectives of the realization of Kopdes Merah Putih is to create monetary circulation within villages. Previously, many villages functioned merely as consumer markets for products from outside regions, causing economic value to flow outward. Through village cooperatives, this pattern is reversed. Villages are encouraged to become active producers, create added value, and manage the distribution and marketing of their own products.
Kopdes Merah Putih established in various regions have become new symbols of rural economic independence. These cooperatives function not only as trading centers, but also as spaces for promoting local economic identity. Distinctive village products—from organic agricultural produce and handicrafts to traditional culinary goods—gain broader and more structured market access.
From a financing perspective, the government ensures more inclusive access to capital for village cooperatives through the Revolving Fund Management Agency for Cooperatives. In addition, the Ministry of Cooperatives runs business incubation programs to help rural entrepreneurs improve product quality, enhance packaging, strengthen branding, and develop digital marketing strategies. These efforts are essential to ensure that village products can compete in modern markets without losing their local identity.
Minister Ferry Juliantono emphasized that the realization of Kopdes Merah Putih aligns with the President’s directive that rural communities should not merely be beneficiaries, but independent economic actors. Cooperatives were chosen as the primary instrument because they uphold principles of togetherness, economic justice, and collective ownership that favor the people.
Government support is also reflected in the development of physical infrastructure for village cooperatives. Kopdes Merah Putih buildings, storage facilities, distribution infrastructure, and logistics vehicles are being prepared to facilitate the flow of goods between villages. This infrastructure ensures that cooperatives are not only institutionally present, but also operationally robust.
At the regional level, Minister Ferry Juliantono invited the Jambi Provincial Government together with the Regional Indonesian Cooperative Council (Dekopinwil) of Jambi to accelerate the development of Kopdes Merah Putih. Jambi is expected to become a national pilot model demonstrating how village cooperatives can serve as the main engine of local economic growth while strengthening community independence.
Strengthening cooperatives is not merely a government policy, but a constitutional mandate that positions cooperatives as a pillar of the national economy. Therefore, the realization of Kopdes Merah Putih requires cross-sectoral synergy, involving the central and regional governments, financial institutions, and village communities themselves.
To ensure program success, the government has formed joint teams tasked with overseeing implementation in villages and subdistricts that are ready to establish Kopdes Merah Putih. These teams conduct institutional readiness assessments, provide business mentoring, and enhance the capacity of cooperative managers to ensure effective and sustainable implementation.
In addition, Minister of Social Affairs Saifullah Yusuf stated that Kopdes Merah Putih is part of the national strategy to eradicate extreme poverty and promote independence-based economic empowerment. According to him, cooperatives are the most effective instruments for strengthening the economic capacity of poor and vulnerable communities in a sustainable manner.
In practice, beneficiary families who already operate businesses are facilitated to join village cooperatives. Their products are marketed through the Kopdes Merah Putih network, providing more stable and profitable market access. At the same time, cooperatives supply basic necessities to communities at affordable prices with assured quality.
This scheme creates dual benefits for rural communities. They not only act as consumers, but also as owners and managers of the cooperatives. Each member is entitled to a share of the cooperative’s profits, thereby improving welfare as the cooperative grows.
The government ensures that participating cooperatives are selected carefully. Only cooperatives that are physically, managerially, and institutionally ready will be integrated into the program. Moreover, the implementation approach is tailored to the social, economic, and cultural characteristics of each village to ensure that policies are truly well-targeted.
Overall, the realization of Kopdes Merah Putih represents an important milestone on the path toward rural economic independence. This program not only strengthens local economic sectors, but also builds the confidence of rural communities as the main actors of development.
With policy synergy, infrastructure support, access to financing, and institutional strengthening, Kopdes Merah Putih has the potential to become a new foundation for a more just, inclusive, and sustainable national economy. The realization of this program is not merely a development agenda, but a concrete step toward elevating the dignity, independence, and welfare of villages across Indonesia.
(* The author is a university student from Bogor residing in Jakarta)
