Government Rolls Out Koperasi Merah Putih Programme with Full Legal Framework
Jakarta — The government is rolling out a major programme to establish Koperasi Merah Putih (Red and White Cooperatives) in villages and sub-districts across Indonesia. The programme, enacted through Presidential Instruction (Inpres) No. 9 of 2025, will be a priority of the Prabowo Subianto administration to strengthen the people's economy. Crucially, the government has emphasised that the legal status of these cooperatives must be clearly established, with all cooperatives required to be founded on a proper legal basis and comply with prevailing regulations.
**Legal Entity Status: Full State Legitimacy**
Every Koperasi Merah Putih is required to hold official legal entity status. The legal foundations for their establishment include Law No. 25 of 1992 on Cooperatives, which governs the structure, function and principles of cooperatives; the latest Ministry of Cooperatives and SMEs regulation governing the registration process through the Online Single Submission (OSS) system; and the OSS system itself as the official registration channel integrated with the Ministry of Cooperatives and SMEs.
This legal entity status ensures that cooperatives can operate legally, transparently and accountably. Accordingly, cooperatives are entitled to access financing from banks, legal protection and government incentives.
**What Is Koperasi Merah Putih?**
Koperasi Merah Putih is a village/sub-district-based multipurpose cooperative model launched by the government to strengthen the grassroots economy. Beyond savings and loans, these cooperatives will also handle distribution of basic commodities and staple goods, cold storage and processing of agricultural and fishery products, village clinics and pharmacies, and management of micro-enterprises and logistics.
**Legality and Organisational Structure**
To obtain legal entity status, a cooperative must possess a deed of establishment from a cooperative notary, articles of association and bylaws that conform to cooperative principles, a management and supervisory structure ratified at a members' meeting, and a Cooperative Identification Number and legal entity number from the Ministry of Cooperatives and SMEs.
This legality is not merely symbolic but an absolute requirement for cooperatives to become official government partners in managing national strategic programmes.
**Prabowo to Oversee Regulation-Based Cooperative Implementation**
The Prabowo Subianto administration will directly oversee the implementation of legally grounded Koperasi Merah Putih. With a target of 80,000 active cooperatives by 2029, the approach encompasses revitalisation of existing cooperatives, establishment of new legally incorporated cooperatives, training and mentoring of cooperative human resources, and utilisation of village funds for active legally incorporated cooperatives.
**Legal Entity Status: Full State Legitimacy**
Every Koperasi Merah Putih is required to hold official legal entity status. The legal foundations for their establishment include Law No. 25 of 1992 on Cooperatives, which governs the structure, function and principles of cooperatives; the latest Ministry of Cooperatives and SMEs regulation governing the registration process through the Online Single Submission (OSS) system; and the OSS system itself as the official registration channel integrated with the Ministry of Cooperatives and SMEs.
This legal entity status ensures that cooperatives can operate legally, transparently and accountably. Accordingly, cooperatives are entitled to access financing from banks, legal protection and government incentives.
**What Is Koperasi Merah Putih?**
Koperasi Merah Putih is a village/sub-district-based multipurpose cooperative model launched by the government to strengthen the grassroots economy. Beyond savings and loans, these cooperatives will also handle distribution of basic commodities and staple goods, cold storage and processing of agricultural and fishery products, village clinics and pharmacies, and management of micro-enterprises and logistics.
**Legality and Organisational Structure**
To obtain legal entity status, a cooperative must possess a deed of establishment from a cooperative notary, articles of association and bylaws that conform to cooperative principles, a management and supervisory structure ratified at a members' meeting, and a Cooperative Identification Number and legal entity number from the Ministry of Cooperatives and SMEs.
This legality is not merely symbolic but an absolute requirement for cooperatives to become official government partners in managing national strategic programmes.
**Prabowo to Oversee Regulation-Based Cooperative Implementation**
The Prabowo Subianto administration will directly oversee the implementation of legally grounded Koperasi Merah Putih. With a target of 80,000 active cooperatives by 2029, the approach encompasses revitalisation of existing cooperatives, establishment of new legally incorporated cooperatives, training and mentoring of cooperative human resources, and utilisation of village funds for active legally incorporated cooperatives.