The Red and White Cooperative and New Hope for the Village Economy
By: Salsabila Ayudya*
The Red and White Cooperative represents a shift in development approaches, placing villages as the primary subjects of growth through strengthening independence and the spirit of mutual cooperation. The development of this program demonstrates Indonesia’s increasingly tangible progress.
The Minister of Cooperatives, Ferry Juliantono, announced that the physical construction of 3,135 Red and White Village/Sub-District Cooperatives (KDKMP) has been fully completed. Furthermore, the Ministry of Cooperatives is targeting the completion of approximately 34,000 more units in the near future. This scale of development reflects the acceleration of efforts to achieve village-based economic equality and demonstrates that the transformation has moved from the planning stage to widespread implementation.
The Red and White Cooperative revives the values of collectivity that have long been a part of village life. Previously informal cooperation is now strengthened within a more organized economic system. Through cooperatives, communities have a platform to manage shared potential, expand access to capital, and improve bargaining power in the distribution chain. This creates opportunities for villages to no longer rely entirely on market mechanisms that are often biased.
Cooperatives act as a bridge, providing access to financing, training, and distribution of products. In this context, the village economic system becomes more focused and coordinated. President Prabowo emphasized that all subsidized goods will be directly accessible to the people through the Red and White Cooperative, thereby eliminating opportunities for misappropriation and distribution leakage.
These changes not only impact the economic aspect but also shape new mindsets within the community. The orientation previously focused on short-term needs is shifting toward more sustainable planning. Awareness of the importance of business management, improving product quality, and utilizing technology is growing. Villages are beginning to be viewed as spaces with great potential for growth and innovation.
Socially, cooperatives strengthen community cohesion. Interactions that were previously individualistic are now evolving into collaborative ones. Each member plays a role in maintaining the sustainability of the joint venture, creating a strong sense of ownership. This helps narrow economic disparities and strengthen relationships among residents. Cooperatives function not only as economic institutions but also as social spaces that strengthen solidarity.
The development of the Red and White Cooperative concept is also tailored to the needs of modern society. The Minister of Villages and Development of Disadvantaged Regions (Mendes PDT), Yandri Susanto, stated that the existence of the Red and White Cooperative is in line with President Prabowo Subianto’s sixth Asta Cita (Asta Cita), which emphasizes village-based development as an effort to achieve economic equality and alleviate poverty.
According to Yandri, the Red and White Cooperative represents a breakthrough in the village economy, offering a modern retail concept that provides a variety of community needs, from fertilizer and basic necessities to LPG, but with a distinct benefit orientation from the private sector. He also emphasized that the Cooperative offers an alternative economic model distinct from modern retail chains, as all business profits are returned to the village community.
The presence of cooperatives also opens up space for the involvement of the younger generation. Amidst the tide of urbanization, villages now offer new and equally promising opportunities. Young people have the opportunity to innovate, develop businesses, and contribute directly to the development of their communities. This has the potential to stem the rate of migration while maintaining the sustainability of the village economy.
This transformation is further strengthened by the support of continuously developing infrastructure. Access to electricity, internet, and transportation allows village products to reach a wider market. Digitalization is a crucial tool for accelerating village economic growth, while connecting communities to opportunities beyond their local area. With improved connectivity, villages are no longer isolated but become part of a larger economic ecosystem.
In times of economic uncertainty, cooperatives demonstrate strong resilience. Their member-based system makes them more adaptable to change. Profits are measured not only in financial terms but also in the social benefits they generate. This makes cooperatives a crucial pillar in maintaining economic stability at the local level.
However, adapting to a new system still takes time. Education, mentoring, and strengthening governance are key to ensuring long-term success. Transparency and accountability are also crucial factors in building trust, both within the cooperative and at the broader level.
Overall, the Merah Putih Cooperative reflects a new direction for more inclusive and equitable development. Villages are no longer marginalized but have become centers of growth with strategic roles. By leveraging local potential and strengthening community capacity, development can be more equitable and sustainable.
The hopes emerging from this initiative are growing stronger with the various achievements already achieved. Villages are beginning to reveal a new face full of opportunities, where communities are not only beneficiaries but also key actors in development. The Merah Putih Cooperative serves as a bridge connecting potential to prosperity, while simultaneously building a new narrative that the future of the national economy can grow from villages.
*) The author is a Content Writer at the Bhumi Pertiwi Economic Forum