Jakarta - The government, through the Ministry of Cooperatives (Kemenkop), is accelerating the operationalization of 80,000 Merah Putih Village/Sub-District Cooperatives (Kopdes/Kel) to restore the original spirit (khittah) of cooperatives as the Backbone of the National Economy. One of the key strategies for accelerating the operation of Merah Putih Kopdes/Kel is by involving the academic community in human resource training for cooperative managers, village/sub-district potential mapping, and community-based research initiatives.

Minister of Cooperatives Ferry Juliantono emphasized that activating all 80,000 Merah Putih Kopdes/Kel, which were established in July 2025, is a significant step by the government to reinstate cooperatives as a primary pillar of the national economy, as mandated in Article 33 of the 1945 Constitution, which promotes a family-based and mutual cooperation (gotong royong) economic system.

“Under President Prabowo’s administration, he wants to realign the direction of economic development, which in recent times has strayed from the ideals of our republic’s founders and the mandate of our constitution,” said Minister Ferry in his keynote speech at the 9th Graduation Ceremony of Ary Ginanjar University (UAG) at Menara 165, Jakarta, on Wednesday (10/09/2025).

Minister Ferry explained that over the past few decades, the national economic system has become overly dependent on free market mechanisms, often favoring large entities while marginalizing smaller ones. The establishment of 80,000 Merah Putih Kopdes/Kel is seen as a shortcut to shift the main driver of the economy away from dominance by private companies or SOEs (State-Owned Enterprises), placing cooperatives at the center of national economic development.

“If market mechanisms are not regulated by the state, large market players will dominate key sectors, causing small communities to be increasingly marginalized,” he stated.

The government acknowledges that economic disparities persist, particularly in rural areas. Therefore, the Merah Putih Kopdes/Kel program is designed to address long-standing rural issues, such as loan shark traps, online lending, and limited access to basic goods and healthcare services.

“Many rural communities still face significant difficulties. Through Kopdes, we aim to restore the role of cooperatives in protecting, serving, and economically empowering the people,” Minister Ferry explained.

In the operationalization phase of the Kopdes program, Kemenkop encourages the participation of young people, particularly university graduates, to take on roles as cooperative managers. He believes that with educated youth at the helm, the implementation of Merah Putih Kopdes/Kel will be smoother and more effective.

“Once the Kopdes are operational, they will need managers—especially young people, including graduates from UAG. This is where the contribution of the educated class is put to the test,” said the Minister.

To date, Kemenkop has established partnerships with university rector forums and various provincial-level universities to support institutional and human resource development for the Merah Putih Kopdes/Kel. Human resource development training programs have already been launched, involving various parties, with universities taking on a major role.

“The cooperative approach now must be education-based, because ideally, these village cooperatives will be managed by young people equipped with innovative ideas,” he added.

Minister Ferry also highlighted the importance of leveraging Artificial Intelligence (AI) in operating the Merah Putih Kopdes/Kel. The use of AI is intended to map the talents of cooperative managers to ensure accurate human resource placement.

“Cooperative management is analyzed using AI identifying who is best suited for finance, trade, and so on. This method is relatively more precise and cost-effective,” he explained.

In this operational phase, Kemenkop, together with the National Task Force for the Acceleration of Merah Putih Kopdes/Kel Formation, is focusing on encouraging each Kopdes unit to prepare a solid business proposal to collaborate with Himbara banks or other partners. For initial operational funding needs, the government, through the Ministry of Finance, has allocated up to Rp16 trillion sourced from Excess Budget Balance (SAL), regulated under Minister of Finance Regulation (PMK) Number 63 of 2025 on the Use of SAL.

With synergy across stakeholders and a well-planned operational roadmap, Minister Ferry expressed confidence that Indonesia will achieve its target of inclusive economic growth, driven in part by the role of cooperatives.

“Hopefully, these Kopdes can restore Indonesia’s greatness in line with our founding aspirations, so that by 2045, we can achieve the Golden Indonesia Vision,” he concluded.