Various Community Elements Support the Merah Putih Village Cooperative as a Strengthener of the People’s Economy
Jakarta, – Support for the establishment of the Merah Putih Village Cooperative (KopDes Merah Putih) continues to grow. The central government, local governments, community leaders, and grassroots communities have high hopes for this cooperative as a driver of the village economy and an instrument for poverty alleviation.
This cooperative is part of the national policy initiated by President Prabowo Subianto to establish cooperatives in more than 70,000 villages in Indonesia. The Minister of Cooperatives and SMEs, Budi Arie Setiadi, called this program an integrative effort between the establishment of new cooperatives, revitalization of old cooperatives, and development of local businesses based on village potential.
The government’s steps in establishing the Merah Putih Village Cooperative have also received appreciation from various parties. This policy is considered a real form of siding with the economy of the common people who have so far had less access to fair and affordable financial institutions. This program is considered a strategic breakthrough that reflects the government’s seriousness in overcoming extreme poverty and creating local economic independence.
Deputy Minister of Social Affairs, Agus Jabo Priyono, assessed that cooperatives could be a solution to empower farm laborers and extreme poor groups, whose numbers dominate in the National Social Welfare Single Database (DTSEN).
“Strengthening cooperatives will have a significant impact in opening up new business opportunities and increasing the income of village residents,” he explained.
The national launch of KopDes Merah Putih is scheduled for July 12, 2025, coinciding with the commemoration of Indonesian Cooperatives Day. The government is also preparing financing support through the allocation of village funds and access to capital from member banks of the State-Owned Bank Association (Himbara), with an initial capital range of IDR 3 to IDR 5 billion per cooperative.
Meanwhile, Minister of Home Affairs Tito Karnavian emphasized the importance of the presence of cooperatives as a state tool in providing fair and legal economic access for village communities.
According to him, cooperatives can be a healthy alternative to the practices of loan sharks, middlemen, and illegal online loans that often trap village communities in a cycle of debt.
“With the support of all parties, cooperatives can become the backbone of the local economy, create a more independent business ecosystem, and strengthen the resilience of village communities to economic turmoil,” he said.
With the launch approaching, the Red and White Village Cooperative is expected to be able to become the driving force of an inclusive people’s economy, strengthening the position of villages as centers of production and national economic independence. This program is not only a symbol of people-based development, but also a concrete step towards a more just and prosperous Indonesia.
