1,508 Merah Putih Village Cooperatives Established, with Minimal Operations
The strategic programme for Merah Putih Village or Urban Village Cooperatives in Bengkulu Province has recorded significant progress in terms of institutional legality. As of 27 March 2026, 1,508 Merah Putih Village Cooperatives have been officially established and legally incorporated out of the total target of 1,513 villages and urban villages in Bengkulu Province.
However, according to the Head of the Regional Office of the Directorate General of the Treasury in Bengkulu Province, M Irfan Surya Wardana, the activation of operations and business partnerships for these cooperatives remains minimal.
“Digitalisation and operations are not yet evenly distributed. Data from the Directorate General of the Treasury shows a gap between institution formation and the reality on the ground,” said Irfan at the Bengkulu Economic Seminar on Thursday, 9 April 2026.
He explained that for digitalisation, out of 1,508 cooperatives, 1,505 already have marketplace accounts (Simkopdes), but only 176 cooperatives have official emails and active operational accounts.
Meanwhile, for physical outlets, only 207 cooperative outlets are recorded as actively operating at the village level. For partnerships, only 53 cooperatives have submitted partnership applications, with a total of 256 ongoing collaborations.
“In general, the Merah Putih Village Cooperatives programme in Bengkulu is progressing well in the formation stage, but acceleration is still needed in business activation, partnerships, and asset utilisation to make the village’s economic impact more optimal,” hoped Irfan.
The report also highlights strategic issues related to funding. The high allocation of Village Funds absorbed for physical development and facilities of the Merah Putih Village Cooperatives raises concerns about potential “cannibalisation” of budgets for other village programmes.
“There are concerns that other programmes such as social assistance, basic infrastructure, or food security could be squeezed due to the high budget portion for Kopdes Merah Putih,” he revealed.
According to Irfan, this creates a dilemma for village governments between long-term investment through cooperatives or meeting the community’s short-term needs.
In addition, there is a risk of building grand physical facilities without accompanying them with capable management capacity. This condition has the potential to make the prepared assets—1,149 plots of land/assets—economically unproductive.
In response to this situation, the Directorate General of the Treasury recommends that every Merah Putih Village Cooperative immediately prepare a specific business plan according to local potential, whether in the distribution of agricultural products or the trade of basic necessities.
Strengthening the capacity of administrators in financial management and simple accounting becomes a key factor so that cooperatives are not only organisationally active but also financially healthy.
“Local governments are also encouraged to implement an annual evaluation system based on turnover and impact on residents’ income to maintain transparency and accountability in the use of Village Funds,” said Irfan.