By: Putri Dewi Nathania)
Village cooperatives are at the forefront of building a foundation for economic equality while strengthening national food security. Their role goes beyond their traditional role as savings and loan institutions to become a driving force for a productive, grassroots economy. Through the principle of mutual cooperation, village cooperatives encourage economic independence, strengthen food supply chains, and create equitable prosperity.
In the context of national development, village cooperatives play a strategic role as a vehicle for realizing local economic empowerment. The government positions these institutions as a primary instrument for promoting equitable economic distribution.
Through the Red and White Village Cooperative (KDMP) program, the government is striving to further shorten the distribution chain, strengthen the bargaining power of farmers and fishermen, and create new jobs based on regional potential. This approach not only stimulates economic activity in villages but also strengthens national food security by ensuring efficient distribution of produce.
Head of the Center for Regional and Budget Studies (Puskadaran) DPD RI, Sri Sundari, emphasized that cooperatives are the embodiment of the constitutional mandate in Article 33 of the 1945 Constitution. He views cooperatives as a strategic means of building an economy based on togetherness and social justice.
In his view, the Red and White Cooperative is not only an economic entity but also a social movement that strengthens national unity. The DPD RI is committed to promoting applicable and equitable policies so that cooperatives can become a pillar of the people’s economy.
The Red and White Village Cooperative Program, regulated by Presidential Instruction No. 9 of 2025, targets the establishment of more than 80,000 cooperatives across all villages and sub-districts. This initiative can accelerate bottom-up economic transformation, strengthen regional competitiveness, and foster food security through decentralized production and distribution systems. Thus, village cooperatives not only stimulate the local economy but also build a strong foundation for food sovereignty.
From an academic perspective, INDEF economist Fadhila Maulida believes the success of village cooperatives depends on the extent to which comprehensive institutional transformation is carried out. She believes cooperatives must move from an administrative model to a modern and professional community business institution.
Improving human resource capacity, financial accountability, and digitalization are essential steps for cooperatives to survive in an era of global competition. Fadhila emphasized the importance of adopting digital technology to expand markets, manage financial data, and increase transparency, ensuring cooperatives can be trusted as a vehicle for the rural economy.
Capacity building also needs to be balanced with an effective oversight system. Nailul Huda of the Center of Economic and Law Studies (CELIOS) emphasized that cooperative management must be oriented towards a bottom-up approach, with the community as the primary decision-maker. In this way, village cooperatives can truly become tools for community economic empowerment, not simply administrative projects or policy symbols with no tangible benefits.
On the government side, Henny Navilah from the Ministry of Cooperatives and SMEs explained that strengthening village cooperatives is an integral part of President Prabowo Subianto’s Asta Cita (Asta Cita). The program positions cooperatives as a key pillar of community empowerment and regional economic equality.
The government is committed to providing capital support, training, and institutional assistance to enable cooperatives to function as centers of village economic activity. Through collaboration with state-owned food enterprises and national financial institutions, cooperatives are expected to strengthen local food reserves and maintain stable staple food prices.
More broadly, village cooperatives play two important roles in the national economy. First, as a pillar of economic equality, cooperatives create new jobs through diversification of trade, production, and service businesses.
Farmers and fishermen gain broader market access because their products are sold collectively at fair prices. Access to capital is also increasingly open through inclusive savings and loan services, enabling rural communities to develop businesses without relying on loan sharks. Furthermore, cooperatives serve as centers for economic education, strengthening members’ managerial and entrepreneurial skills.
Second, village cooperatives play a role in safeguarding national food security. By providing agricultural production facilities, cooperatives ensure the availability of seeds, fertilizers, and agricultural equipment at affordable prices.
The harvest absorption function helps farmers avoid losses due to price fluctuations and middlemen. The construction of warehouses and cold storage strengthens local food reserves and maintains a stable supply throughout the year. Furthermore, through collaboration with BULOG and other state-owned food enterprises, cooperatives help distribute subsidized staple foods to the public more efficiently and transparently.
The village cooperative movement reflects the spirit of mutual cooperation that is a hallmark of the Indonesian nation. Amid global challenges such as the food crisis and economic inequality, cooperatives offer a real solution that benefits the people. The growth of local economic independence through cooperatives will strengthen national resilience across all sectors, including food, social, and economic sectors.
Village cooperatives are not merely economic entities, but also represent the ideals of national independence. With sustainable policy support and strong community participation, village cooperatives will continue to be a strong pillar in realizing economic equality and equitable national food security. (*)
)* The author is a contributor to the Perkasa Media Institute
