The Indonesian government is set to launch the Koperasi Desa/Kelurahan Merah Putih (Kopdes/kel) program on July 12, 2025, in a move aimed at bolstering the economic foundation of rural communities and promoting equitable prosperity. This initiative, which coincides with National Cooperative Day, is a strategic response to the pressing need for economic development at the grassroots level.
Under the Presidential Instruction Number 9 of 2025, the government has committed to establishing up to 80,000 active cooperatives across Indonesia. This ambitious program was initially presented by President Prabowo Subianto during a meeting at the State Palace on March 3, 2025. The Koperasi Merah Putih is envisioned not merely as a typical business entity but as a vital driver of local economies, rooted in community spirit, mutual cooperation, and active citizen participation.
So, what exactly is Koperasi Merah Putih? Designed specifically for villages and urban neighborhoods, this cooperative model is open to local residents, aiming to become a hub for economic activity that encourages direct involvement from community members. The program seeks to tackle significant challenges, including food security and economic disparity, which have long plagued rural areas.
The Koperasi Merah Putih will encompass seven primary business units, each tailored to meet the diverse needs of local communities. These include:
- Pharmacies: Ensuring affordable access to medications.
- Clinics: Providing easily accessible basic health services.
- Savings and Loans: Offering a financial inclusion platform for local residents.
- Cooperative Offices: Serving as administrative centers for member services.
- Basic Necessities Procurement: Maintaining stable prices for essential goods.
- Warehousing/Cold Storage: Supporting food security and harvest management.
- Logistics Services: Facilitating the distribution of goods across regions.
Among these, the savings and loan unit stands out as a crucial facility. It aims to provide villagers with access to formal financial services, enabling them to save, borrow for business ventures, or meet urgent needs without resorting to predatory lending practices. This feature is designed to foster financial inclusion and act as a sustainable economic catalyst.
The Koperasi Merah Putih program is expected to yield several tangible benefits for rural communities. These include:
- Collectively enhancing the welfare of rural populations.
- Creating new job opportunities in the cooperative sector and its supporting services.
- Providing rapid and systematic economic services.
- Encouraging community involvement in cooperative-based economic systems.
- Modernizing cooperative management systems to adapt to the digital age.
- Reducing consumer prices while increasing farmers' selling prices.
- Breaking the cycle of middlemen that often exploits farmers.
- Increasing the Farmers' Exchange Rate (NTP) as a measure of agricultural welfare.
- Acting as an accelerator, aggregator, and consolidator for MSME players.
- Reducing extreme poverty and controlling inflation rates.
Funding for these cooperatives will come from various legitimate sources, including the State Revenue and Expenditure Budget (APBN), regional budgets (APBD), village funds, and other permissible channels. This diverse funding strategy underscores the government's commitment to supporting the widespread establishment of cooperatives.
To ensure alignment with official guidelines, the naming of cooperatives must follow a specific format. Each cooperative should start with the word "Koperasi," followed by "Desa Merah Putih" or "Kelurahan Merah Putih," and conclude with the name of the village or district. If a cooperative is based on Sharia principles, it must include the term "Syariah." Examples of suitable names include "Koperasi Desa Merah Putih Matuju" and "Koperasi Syariah Kelurahan Merah Putih Paccerakkang."
Registration for the Koperasi Merah Putih can be completed online at merahputih.kop.id. There are three registration schemes available:
- Establishing a New Cooperative: This option is for areas without existing cooperatives, beginning with a community meeting followed by online registration.
- Developing an Existing Cooperative: For already established cooperatives, this scheme allows for registration aimed at expansion, including necessary amendments to the cooperative's foundational documents.
- Revitalizing an Inactive Cooperative: This provides a chance to reactivate long-dormant cooperatives through support, potential mergers, and identification of local opportunities.
Each registration scheme involves similar steps: filling out regional data, uploading supporting documents, and registering the cooperative's name along with a notary.
The Koperasi Merah Putih initiative represents a significant governmental effort to reshape the economic landscape of rural Indonesia through a collaborative and inclusive approach. With its diverse business units, including the vital savings and loans services, this cooperative model aims to become a cornerstone of local economic empowerment.
For residents of villages, local officials, and MSME actors, now is the time to engage in this new economic movement. Forming or revitalizing cooperatives in your area could lead to a brighter and more prosperous future for all involved.
