RADAR TULUNGAGUNG – The government’s ambitious Merah Putih Village Cooperatives program is now facing growing criticism after economists questioned whether the initiative truly creates new economic activity or simply shifts consumers away from existing businesses such as Alfamart, Indomaret, and local shops.
The debate intensified after videos showing the opening of several KDMP outlets spread widely across YouTube and social media. Many observers noticed that the products sold inside the cooperatives looked almost identical to those commonly found in modern minimarkets. Snacks, rice, cooking oil, instant noodles, and daily household necessities dominated the shelves, triggering concerns over the real economic impact of the program.
Economist Raden Pard became one of the strongest voices highlighting the issue. He warned that the Merah Putih Village Cooperatives could fail to generate meaningful economic growth if they only move consumers from one retail channel to another without creating fresh demand or new productive sectors.
Economists Question the Real Impact of KDMP
Speaking during an economic forum in Jakarta, Raden explained that the biggest concern lies in the possibility of “market shifting.” According to him, if villagers simply stop buying from neighborhood warungs, Alfamart, or Indomaret and move their spending to KDMP stores, the overall economic impact will remain limited.
He emphasized that economic growth should come from additional production, innovation, and job creation rather than redistribution of existing transactions. If the program only changes where people shop, then the benefits to the national economy could be minimal.
Raden also warned that employment generated by the cooperatives may not necessarily represent new jobs. Workers could merely move from existing retail businesses into KDMP operations without increasing the total number of employment opportunities.
The criticism quickly gained public attention because the government has promoted the cooperative program as one of its flagship strategies to strengthen village economies and improve goods distribution in rural areas.
Comparison With Successful Global Cooperatives
To explain his concerns, Raden compared KDMP with successful international cooperative models such as Fonterra in New Zealand. He noted that Fonterra grew organically from small dairy farmers who united to strengthen their bargaining power and production capacity.
According to him, Fonterra succeeded because it developed through a bottom-up approach driven directly by community needs and business initiatives. Over time, the cooperative expanded into a global-scale company while maintaining strong participation from its members.
In contrast, Raden argued that the Merah Putih Village Cooperatives rely heavily on a top-down system. The government plays a dominant role in designing the program, providing funding, facilitating loans, and determining operational structures.
Under this model, local communities mostly act as executors of a system already prepared by policymakers. Critics fear this structure could weaken community ownership and reduce the ability of cooperatives to innovate independently.
KDMP Still in Early Development Stage
Despite the criticism, Raden admitted that the final outcome of the program cannot yet be fully judged because KDMP remains in the early stages of implementation. He said the real impact will only become visible after the cooperatives operate consistently over a longer period.
Supporters of the program argue that the cooperatives could still improve access to affordable goods in underserved villages while helping stabilize supply chains outside major urban areas.
The government itself has repeatedly stated that the cooperative movement aims to empower rural communities and strengthen economic equality between cities and villages. Officials believe cooperatives can become important distribution centers that connect local producers with consumers more efficiently.
However, economists insist that opening new stores alone is not enough. They argue that the long-term success of KDMP depends on whether the cooperatives can create additional economic value through local production, agricultural partnerships, small business development, and community-based industries.
Public Waiting for Proof of Economic Benefits
As more KDMP outlets begin operating across Indonesia, public curiosity continues to grow. Many people now question whether the Merah Putih Village Cooperatives can truly become a people-powered economic movement or whether they will simply become another version of existing minimarkets.
The discussion has also sparked broader debate about the future of village economies in Indonesia. Experts believe cooperatives can succeed if they focus on empowering local producers instead of competing directly with established retail chains.
For now, the public is still waiting for concrete evidence. The coming months will likely determine whether KDMP evolves into a transformative economic force for rural communities or struggles to differentiate itself from businesses already dominating the market.