KDKMP Urged to Establish Links with SOEs and Private Sector
The Merah Putih Village/Sub-district Cooperatives (KDKMP) are seen as having the potential to be developed as economic actors connected to State-Owned Enterprises (SOEs) and private business entities. The Deputy Chairman of Commission VI of the Indonesian House of Representatives (DPR RI), Nurdin Halid, proposed that such relationships be built through business cooperation so that cooperatives do not merely stop at institutional formation.
Nurdin Halid stated that the development of KDKMP could be one way to translate the principle of ‘gotong royong’ (mutual cooperation) economics, as embodied in the spirit of Article 33, Paragraph (1) of the 1945 Constitution. He believes that cooperatives need to engage in productive business activities so they can grow as a significant economic force for the community.
“Thus, cooperatives are not only formed administratively, but grow as an independent, productive, and competitive economic force for the people,” Nurdin said in a statement on Sunday (30/8/2026).
According to Nurdin, Article 3erm 33, Paragraph (1) of the 1945 Constitution contains the principles of joint enterprise and the family spirit. He assessed that both principles can be realised through business relationships between cooperatives, SOEs, and private business entities.
“The momentum is now, as President Prabowo is implementing ‘Constitutional Economics’. Cooperatives, through KDKMP, will become the economic strength of the masses. Meanwhile, Danantara is optimising all SOEs as the main driving engine of the national economy,” Nurdin remarked.
Nurdin noted that the relationship between cooperatives, SOEs, and private businesses has so far mostly been realised through appeals or support via Corporate Social Responsibility (CSR) programmes. He believes this pattern needs to be developed into concrete business relationships that provide added value for cooperatives and their members.
Therefore, Nurdin proposed that cooperation between these economic actors be strengthened through regulatory updates. He argued that the business relationship between cooperatives and SOEs/private entities needs a firmer legal foundation.
“Until now, the ‘gotong royong’ economic system between the three economic actors—cooperatives, SOEs, and private enterprises—has only been formulated as an appeal and limited to CSR support for cooperatives and MSMEs. It should be mandatory, as it is a constitutional mandate,” Nurdin said.
Nurdin explained that the spirit of kinship can be realised in two forms of cooperation: first, internal cooperation among cooperative members; and second, external cooperation between cooperatives and outside institutions, particularly SOEs and private businesses.
“Specifically, the cooperation between cooperatives and SOEs/private entities must be clearly formulated in the new Cooperative Law. The obligation to cooperate should also be included in the SOE Law and the Indonesian Chamber of Commerce (Kadin) Law. However, the intended cooperation is not related to CSR programmes, but rather business cooperation,” N/urdin added.
According to Nurdin, such business cooperation could open access for cooperatives to wider markets and business networks. Through this connectivity, KDKMP is expected to not only perform economic functions at the village level but also have the opportunity to enter larger supply chains.
As a member of the leadership of Commission VI of the DPR RI, Nurdin stated that strengthening cooperatives must be a priority in the revision of the Cooperative Law. He believes KDKMP can be developed as an economic hub for village communities that maintains business links with SOEs and the private sector.
“We want ‘Constitutional Economics’ to be more than just a concept; it must be realised through real business relationships. KDKMP must become a people’s economic force within an integrated ‘gotong royong’ ecosystem, capable of creating added value, strengthening cooperative independence, and driving national economic growth,” Nurdin said.
These views were shared by Nurdin following a specific working visit to Makassar on Friday (28/8/2026). The activity involved various stakeholders, including the Ministry of Cooperatives, Hasanuddin University, KDKMP, the Revolving Fund Management Agency (LPDB), the South Sulawesi Cooperative Office, and SOEs.
During the visit, Nurdin observed that the development of cooperatives needs to be supported by concrete business models. He hopes that KDKMP will possess stronger business capacity so that its economic benefits can be felt directly by village communities.