Indonesia: Merah Putih Cooperative, New Pillar of Village Economic Independence in West Papua

Manokwari – The government continues to strengthen the foundations of the people’s economy in eastern Indonesia through the establishment of the Merah Putih Village Cooperative (Kopdes) in the provinces of West Papua and Southwest Papua. This strategic step is considered capable of promoting village economic independence, strengthening financial inclusion, and reducing inequality in the distribution of agricultural and marine products.

Deputy Minister of Cooperatives and SMEs, Ferry Juliantono, stated that the Merah Putih Kopdes is a manifestation of the state’s welfare approach. He emphasized the importance of making Papuans the subjects of economic development. According to him, the Merah Putih Kopdes is being encouraged to become a professionally managed center for people’s economic services and a forum for productive collaboration.

“Farmers, fishermen, and other community economic actors have not yet achieved economic justice. Their commodities are sold cheaply due to the long distribution chain controlled by middlemen,” said Ferry.

Furthermore, Ferry highlighted the high prices of staple foods in West Papua, which are still supplied from outside the region. He believes this situation can be addressed if these products are produced and managed directly by local communities through village cooperatives.

In addition to supporting the distribution of local commodities, the Red and White Village Cooperatives (Kopdes Merah Putih) are also expected to provide a solution to the lack of employment opportunities in villages. Ferry is optimistic that the existence of village cooperatives will be able to absorb the workforce, especially educated young people, preventing them from continuing to migrate to big cities.

Piet Bukorsyom, Head of the West Papua Regional Office of the Ministry of Law and Human Rights, stated that institutionally, the Red and White Village Cooperatives (Kopdes Merah Putih) program has shown significant progress. A total of 899 villages and sub-districts in Southwest Papua have also held special village meetings as a prerequisite for cooperative formation.

“As of July 15, 2025, 584 Kopdes units in Southwest Papua have received legal entity approval, out of a total target of 1,014 cooperatives. Sorong City is the region with the highest achievement, followed by Maybrat, South Sorong, Raja Ampat, Sorong, and Tambrauw Regencies,” he explained.

For your information, the Red and White Kopdes program is part of the central government’s strategic agenda under President Prabowo Subianto’s leadership to expand financial inclusion and realize village-based national economic equality.