Economist Values Kopdes Merah Putih as Aligned with Article 33 of the 1945 Constitution
The Red and White Village Cooperative (Kopdes Merah Putih) programme is considered to be in line with the spirit of a people’s economy as mandated by Article 33 of the 1945 Constitution. The programme’s presence is viewed as the government’s effort to strengthen cooperatives as an instrument for economic equality down to the village level.
Economist and academic from the University of Muhammadiyah Bengkulu, Dr Surya Vandiantara, stated that cooperatives have been the founding fathers’ idea since the beginning to build the national economy through the principle of mutual cooperation without distinguishing between social or economic backgrounds. “The main idea behind the establishment of cooperatives by our founding fathers was to advance the economy through mutual cooperation without discriminating against classes or groups in society,” Surya said in a statement on Sunday (12/7).
According to Surya, the principle of mutual cooperation is the main characteristic of cooperatives. In a savings and loan cooperative scheme, members pool capital through principal savings and mandatory savings, which are then used to help other members through loan facilities, whether for productive or consumptive needs. The profits obtained are subsequently returned to members in the form of residual business results (SHU). “This mutual cooperation principle is implemented through members’ principal savings and mandatory savings. These funds are then used to help other cooperative members through loans, so the benefits can be felt together,” he said.
He assessed that through the Kopdes Merah Putih, the government is trying to expand the application of the cooperative concept to the grassroots level. The difference is that while conventional cooperatives rely on raising capital from members, Kopdes Merah Putih receives capital support sourced from the state budget. “Unlike savings and loan cooperatives that rely on member savings, the management of Kopdes Merah Putih utilises funds originating from tax revenues to help the community. However, the principle of mutual cooperation remains its main foundation,” he said.
According to Surya, this approach can also address the classic problem that cooperatives have faced so far, namely low public participation due to the limited ability to pay principal and mandatory savings. “This Kopdes Merah Putih innovation has the potential to overcome the obstacles that cooperatives have faced so far, namely the difficulty of attracting members due to the limited ability to pay principal and mandatory savings,” he said.
Nevertheless, Surya cautioned that the success of the programme heavily depends on accountable governance. He assessed that transparency in budget management and regular supervision are important factors for achieving the goal of community economic empowerment. “Budget transparency is the main key so that the management of Kopdes Merah Putih gains public support. The government also needs to conduct regular audits, not only through the BPK but also involving law enforcement agencies such as the KPK, the Police, and the Prosecutor’s Office so that its implementation is not misappropriated,” he said.
Previously, Minister of Cooperatives Ferry Juliantono stated that the development of Kopdes Merah Putih throughout Indonesia is a concrete implementation of the people’s economy concept, which is part of President Prabowo Subianto’s policy direction. According to Ferry, Kopdes Merah Putih is an instrument to strengthen the community-based economy while correcting the direction of economic development, which has so far been considered too liberal and capitalist. “The President wants to return our economic direction, which has been misguided, too liberal and capitalist, to a people’s economy within the cooperative framework, specifically Kopdes Merah Putih,” Ferry said during a National Seminar on Prabowonomics, Democracy, and the Republic’s Future Direction at the Bandung Institute of Technology, West Java, some time ago.