Learn More About: Merah Putih Cooperatives
- MICRA
- Jun 12
- 3 min read
Writer Fadel M. Ibrahim, MICRA Program Assistant
Editor Regita M. Rusli, MICRA Program Development & Alternatives Manager
Merah Putih Village Cooperative (Kopdes/Kopkel) is a programme that will be launched by the Ministry of Cooperatives (Kementerian Koperasi/Kemenkop). The programme is planned to launch on 12 July 2025, coinciding with National Cooperative Day.
Under Presidential Instruction (Inpres) Number 9 of 2025, the government targets the establishment of 80,000 Merah Putih Village Cooperatives. This programme is a form of the government's commitment to strengthening the village economy and improving community welfare. Through gotong royong (mutual cooperation), kinship, and joint participation are the basic principles of implementing this programme.
The initiative will initially be announced by President Prabowo in a Limited Meeting at the State Palace on Monday, 3 March 2025. The establishment of the Merah Putih Village Cooperative is one of the efforts to improve food security. With 7 types of business units that will be owned by the Merah Putih Village Cooperative, namely pharmacies, clinics, savings and loan business units, cooperative offices, basic food procurement, warehousing or cold storage, and logistics.
Furthermore, the capital for the establishment of this cooperative is sourced from the State, Regional, and Village Budgets, as well as other legal sources in accordance with statutory provisions.
BENEFIT OF MERAH PUTIH VILLAGE COOPERATIVES
The establishment of the Merah Putih Village Cooperative has many benefits, from reducing extreme poverty, to curbing inflation.
Following are the details of the benefits of establishing Merah Putih Village Cooperatives:
Improving welfare of the village community
Creates work opportunities
Increasing people's participation in economic activities through cooperatives
Modernising the management of the cooperative system
Reducing prices at the consumer level
Increase prices for farmers to improve farmer exchange rate (Nilai Tukar Petani/NTP) or farmer welfare
Improving the supply chain
DETERMINATION OF NAMING THE MERAH PUTIH VILLAGE COOPERATIVES
There are special rules for naming a Merah Putih village cooperative, which are regulated by the Ministry of Cooperatives. Cooperative names must begin with the word “Cooperative”, followed by “Merah Putih Village” or “Merah Putih Sub-district”, and continued with the name of the local village or sub-district. If there are similar village names, add the name of the sub-district, district, or city. Cooperatives that operate based on sharia principles must include the word ‘Sharia’.
MICRA'S SUPPORT TOWARDS MERAH PUTIH VILLAGE COOPERATIVES PROGRAMME
As a non-governmental organisation that focuses on MFIs and financial inclusion, MICRA is open and supportive towards this programme. MICRA has a specialised service management unit formed to assist stakeholders in setting up microfinance institutions such as cooperatives. These include feasibility studies, licences to set up cooperatives, recruitment of employees, development of ethical codes and management assistance. In addition, MICRA also provides technical assistance to existing cooperatives for reorganisation, restructuring and strategy development. Furthermore, MICRA helps manage funds provided by international donors for microfinance institutions. Acting as a partner to MFIs, MICRA assists organisations in developing projects from start to finish, helping with implementation monitoring and reporting. MICRA is open to provide consultation through the following link https://www.micra-indo.org/schedule-consultation
CONCLUSION
The Merah Putih Village Cooperative Programme is a government programme to improve food security, control inflation, empower MSMEs, reduce dependence on foreign parties and encourage community economic independence. This programme is very suitable for MICRA services, including Technical Assistance, MFI Establishment and Management Support to assist with the administration of cooperative establishment and management capacity building.
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Sources:
https://www.detik.com/edu/detikpedia/d-7906142/apa-itu-koperasi-merah-putih-ini-pengertian-bentuk-usaha-dan-cara penamaannya#:~:text=dan%20Ciri%2Dcirinya-,Cara%20Penamaan%20Koperasi%20Merah%20Putih,Diawali%20kata%20%22Koperasi%22
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