Indonesia Nears Goal as Over 71,000 Merah Putih Village Cooperatives Established
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JAKARTA, Investortrust.id — Indonesia’s Ministry of Cooperatives announced on Friday that 71,262 Merah Putih Village Cooperatives have been established as of 5:00 p.m. local time, moving closer to the national target of 80,000 units.
Minister of Cooperatives Budi Arie Setiadi said the cooperatives, also known as Kopdes or Kopkel Merah Putih, were formed with the involvement of more than 200 residents in each village or subdistrict. These participants include youth, women, religious and community leaders, and local officials, all of whom took part in special village deliberations
Backed by 18 ministries and local governments, the effort has overcome early logistical and administrative challenges, Budi Arie noted.
“Community support for these cooperatives has been exceptional. People see them as a concrete solution for boosting local economies and promoting social justice,” Budi Arie said in a written statement from Jakarta.
The minister emphasized that musdesus meetings are pivotal in selecting each cooperative’s core leadership, underscoring the importance of inclusive representation to ensure accountability and long-term viability.
The participatory nature of the process not only reinforces Indonesia’s spirit of mutual cooperation (gotong royong) but also lends legitimacy to the cooperatives. This is in line with official guidelines that require broad community involvement in the founding process.
“These cooperatives are not being created haphazardly. Each business model is carefully crafted to align with the village’s economic potential and viability,” Budi Arie explained.
The ministry is also preparing mockups and operational models to guide cooperative operations prudently and strategically.
Following the planning and community meetings, founding members proceed to draft the cooperatives’ articles of association, detailing the organization’s name, sector of business, required capital contributions, and organizational structure. These documents are then certified by a Cooperative Deed Notary (Notaris Pembuat Akta Koperasi) and registered with the Ministry of Law and Human Rights.
The government sees the formation of 80,000 Merah Putih Village Cooperatives as a major step toward building an independent, just, and sustainable rural economy. Officials hope the cooperatives will serve as grassroots economic aggregators and accelerators.
“We want these cooperatives to become the engine of rural economic development, grounded in mutual support and self-reliance. Let's join cooperatives—Koperasi Bangkit,” Budi Arie concluded.