By: Bara Winatha)*
Efforts to ensure equitable national economic development require strategies that directly reach grassroots communities, especially those in rural areas. In this context, the government is encouraging synergy between the Village/Sub-district Cooperatives “Merah Putih” (Kopdes/Kel Merah Putih) and Village-Owned Enterprises (BUMDes) as key drivers of local economies. This collaboration is expected to accelerate sustainable rural economic growth, strengthen food security, and expand access to capital and financial services for rural communities.
Zulkifli Hasan, Coordinating Minister for Food Affairs and Chairman of the Merah Putih Cooperative Advisory Board, stated that the Merah Putih Cooperative program is the implementation of Presidential Instruction No. 9 of 2025, which targets the establishment of 80,000 active village cooperatives across Indonesia. He explained that initial funding of up to IDR 3 billion will be allocated to each cooperative in the form of a revolving loan with a six-year tenor. This is not a grant, but a loan that must be managed professionally and responsibly by cooperatives submitting establishment proposals. The verification process is carried out by banks to ensure transparency and accountability.
The Merah Putih Cooperative is designed as a community empowerment institution. It complements the role of BUMDes, which has served as a strategic village instrument in managing local potential. The synergy between the two strengthens a competitive village economic ecosystem with clearly defined roles. BUMDes can focus on managing village-based assets and public services, while Kopdes Merah Putih concentrates on savings and loan services, managing subsidized commodities, and efficient wholesale distribution of basic necessities.
One important aspect of strengthening village cooperatives is accelerating the legalization of cooperative legal entities. Minister of Cooperatives Budi Arie Setiadi noted that the cost of drafting a notarial deed has now been reduced to IDR 2.5 million, significantly lower than the previous cost of up to IDR 7 million. This initiative demonstrates support for villages that have struggled to establish cooperatives due to administrative and budgetary constraints. He hopes this cost efficiency will accelerate the formation of cooperatives in all villages and sub-districts across Indonesia.
Village cooperatives will receive priority in the procurement and distribution of subsidized commodities such as rice, cooking oil, LPG, and fertilizers. With cooperatives purchasing in bulk, retail prices for communities can be reduced, thus stabilizing prices at the village level. Cooperative profits will also be redistributed to their members, creating an inclusive and sustainable economic cycle.
Minister of Tourism, Widiyanti Putri Wardhana, said that cooperatives could serve as official institutions to facilitate access to financing and training for local tourism actors. She mentioned that 17 tourism villages have been designated as pilot projects for the cooperative strengthening program based on tourism, with plans to expand to thousands more tourism villages across the country.
This initiative aligns with the government’s broader mission to develop tourism villages as a pillar of community-based economic development. The collaboration between Kopdes Merah Putih and BUMDes in this sector will strengthen institutional capacity in managing local potential. Widiyanti added that cooperatives offer strong legal and managerial foundations, while BUMDes bridges village government involvement in planning and program oversight.
The synergy between cooperatives and BUMDes also opens opportunities for integrating inclusive financial service systems at the village level. In some cases, cooperatives can collaborate with Regional Development Banks (BPD) or microfinance institutions to provide credit access for farmers, fishermen, and small business operators. This scheme will help improve financial literacy among rural communities, enabling them to better manage their businesses.
Equally important, this program supports national food security efforts. With cooperatives actively purchasing agricultural products directly from farmers and BUMDes facilitating distribution and marketing, the food supply chain becomes more efficient and equitable. Farmers receive fair prices, and rural communities gain access to affordable basic goods.
Several provinces have taken concrete steps by organizing coordination meetings, providing legal assistance, and symbolically distributing notarial deeds in various villages. One such initiative includes setting a deadline for cooperative establishment by May 31, 2025, with the official program launch scheduled for July 12, 2025. This demonstrates a joint effort between central and local governments to ensure the program is implemented effectively.
From a regulatory standpoint, the synergy between Kopdes Merah Putih and BUMDes is reinforced by government policies allowing village heads to serve as ex-officio chairs of cooperative supervisory boards. This strengthens governance and ensures direct oversight from village authorities. Additionally, two to three facilitators from the central government will assist with professional cooperative management and reporting.
This collaboration is expected to accelerate the transformation of villages into new, independent, and prosperous growth centers. When cooperatives and BUMDes move forward with a unified vision of local economic development, the grand goal of equitable development and stronger national economic resilience becomes not just a dream, but an inevitable reality.
*) The writer is a social and community affairs observer.
