The Merah Putih Village Cooperative-Based People's Economic Model: Institutional Strategy and Regional Policy for Sustainable Village Development

Authors

  • Anik Nur Cholifah Research and Development Agency (Bappeda) of Gresik Regency
  • Tomi Indarto Research and Development Agency (Bappeda) of Gresik Regency
  • Nilam Enggarsasi Setyoningrum Research and Development Agency (Bappeda) of Gresik Regency
  • Sukaris Universitas Muhammadiyah Gresik
  • Suwandi Universitas Muhammadiyah Gresik
  • Wiwik Widiyawati Universitas Muhammadiyah Gresik

DOI:

https://doi.org/10.61194/ijjm.v7i2.2197

Keywords:

village cooperatives, people’s economy, institutional strategy, regional policy, sustainable rural development

Abstract

Introduction: Strengthening the people’s economy is a key strategy in sustainable village development to reduce regional disparities and improve community welfare. The Merah Putih Village Cooperative (KDMP) serves as an institutional instrument to mobilize local economic potential through participation and independence. However, uneven institutional capacity, varying policy support, and limited integration with the local economy hinder its effectiveness. This study examines how institutional strategies and regional policies can optimize the role of village cooperatives. This study contributes by identifying a governance mechanism linking policy orchestration, capacity building, and ecosystem integration, and by proposing a replicable people-centered collaborative governance model that specifies actor roles, coordination mechanisms, and policy leverage points in the KDMP context. Methods: The study uses a qualitative descriptive-explanatory approach based on data from ten informants from five KDMPs and five local village government stakeholders. Data were collected through in-depth interviews, observations, documentation, and supporting questionnaires, and analyzed using thematic analysis to identify recurring institutional and policy patterns. Results: The findings indicate that although KDMPs have formal institutional structures, their effectiveness depends on managerial capacity, policy coordination, and integration within local economic networks. Novelty: These results suggest that strengthening cooperative performance requires not only improved governance but also alignment with the broader economic ecosystem. Contribution: This study offers theoretical insights into enhancing collaborative governance and practical guidance through measurable policy and institutional interventions.

Downloads

Download data is not yet available.

References

Afriansyah, Afdhal, Mustanir, A., Mursalat, A., Kusnadi, I. henri, Fauzan, R., Amruddin, Siswanto, D., Widiyawati, R., & Abdurohim. (2023). Pemberdayaan masyarakat (Cetakan Pe). PT. Global Ekskutif Teknologi.

Aminullah. (2025). Analysis of the Implementation of the Merah Putih Village Cooperative from a Political Economy Perspective. Journal of Economic, Management and Entrepreneurship, 3(2), 91–98. https://doi.org/https://doi.org/10.61502/jemes.v3.i2.132

Ansell, C., & Gash, A. (2007). Collaborative Governance in Theory and Practice. Journal of Public Administration Research and Theory, 543–571. https://doi.org/10.1093/jopart/mum032

Antwi, L. A. A., Nimoh, F., Agyemang, P., & Apike, I. A. (2023). Perception and adoption of free fatty acid reduction techniques by small scale palm oil processors: Evidence from Ghana. Journal of Agriculture and Food Research, 11(November 2022). https://doi.org/10.1016/j.jafr.2022.100462

Arfah, A. (2025). Strengthening Cooperative Governance and Organizational Ethics Through Community-Based Participation. Aksi Kita: Jurnal Pengabdian Kepada Masyarakat, 1(4), 823–828. https://doi.org/doi.org/10.63822/ctj32s18

Arief, S., & Haeruddin, H. (2025). Strategi Pengembangan Koperasi Desa Merah Putih: Tinjauan Literatur atas Praktik Terbaik dan Tantangan Global. Al-Buhuts, 21, 284–299. https://doi.org/DOI: https://doi.org/10.30603/ab.v21i1.6469

Barid, M., Wajdi, N., P, R. S. S. A., & Ferawati, L. A. (2024). Asset-Based Community Development : Leveraging Local Strengths for Empowering Communities : A Bibliographic Analysis. Jurnal Pengabdian Kepada Masyarakat, 8(1), 308–324. https://doi.org/https://doi.org/10.29062/engagement.v8i1.1784

Berge, S. T., Bokoumbo, K., Johnson, K. A., & Yabi, J. A. (2021). Cooperative Development : Sustainability Agricultural Planning Viewed Through Cooperative Equilibrium Management Theory in. Frontiers in Sustainable Food System, 5(November), 1–16. https://doi.org/10.3389/fsufs.2021.758363

Candemir, A., Duvaleix, S., & Latruffe, L. (2021). Agricultural Cooperatives and Farm Sustainability – A Literature Review. Journal of Economic Surveys, 35(4), 1118–1144. https://doi.org/10.1111/joes.12417

Cao, A., Guo, L., & Li, H. (2025). Understanding farmer cooperatives’ intention to adopt digital technology: mediating effect of perceived ease of use and moderating effects of internet usage and training. International Journal of Agricultural Sustainability, 23(1), 1–21. https://doi.org/10.1080/14735903.2025.2464523

Eric, S., & Yaweri, K. (2025). The Role Of Cooperative Societies In Economic Development Of Rural Communities. The Case Of Semuliki Cooperative Society Bundibugyo District. Metropolitan Journal Of Academic Multidisciplinary Research, 4(8), 201–211. https://doi.org/Dogarawa, Ahmad Bello, The Role of Cooperative Societies in Economic Development (June 8, 2010). Available at SSRN: https://ssrn.com/abstract=1622149 or http://dx.doi.org/10.2139/ssrn.1622149

Feisali, M., & Niknami, M. (2021). Towards sustainable rural employment in agricultural cooperatives : Evidence from Iran ’ s desert area. Journal of the Saudi Society of Agricultural Sciences, 20, 425–432. https://doi.org/https://doi.org/10.1016/j.jssas.2021.05.004

Galib, M., Ardasanti, A., Syam, J., & Gunawan, A. (2025). Penguatan Kelembagaan Ekonomi Masyarakat Desa melalui Pembentukan Koperasi Digital. ABDI DAYA: Jurnal Pengabdian Dan Pemberdayaan Masyarakat Penguatan, 3(1). https://doi.org/https://doi.org/10.52421/abdidaya.v3i1.636

Handayani, E., Garad, A., Suyadi, A., & Tubastuvi, N. (2023). Increasing the performance of village services with good governance and participation. World Development Sustainability, 3(June). https://doi.org/https://doi.org/10.1016/j.wds.2023.100089

Hariyanto, A., Saraswati, S., Akliyah, L. S., & Nurhayati, A. (2024). Spatial Pattern Analysis of Rural Development Success Rates Based on the New Rural Development Paradigm (NRDP) Indicators: A Case Study of Cimenyan District. International Journal of Sustainable Development and Planning, 19(10), 3837–3847. https://doi.org/https://doi.org/10.18280/ijsdp.191012

Helliwell, R., & Burton, R. J. F. (2021). The promised land ? Exploring the future visions and narrative silences of cellular agriculture in news and industry media. Journal of Rural Studies Journal, 84(January), 180–191. https://doi.org/https://doi.org/10.1016/j.jrurstud.2021.04.002

Iliopoulos, C., Theodorakopoulou, I., Gonzalez, M., Filippi, M., Nizza, U., & Tektas, A. (2026). Challenges facing agricultural cooperatives in Mediterranean countries. Journal of Rural Studies, 123(January). https://doi.org/https://doi.org/10.1016/j.jrurstud.2026.104004

Jamal, A. C., & Gordon, R. (2024). Grappling with governance : Emerging approaches to build community economies ☆. Journal of Rural Studies, 107(December 2023). https://doi.org/https://doi.org/10.1016/j.jrurstud.2024.103242

Jamaluddin, F., Saleh, N. M., Abdullah, A., Hassan, M. S., Hamzah, N., Jaffar, R., Aziz, S., Ghani, A., & Embong, Z. (2023). Cooperative Governance and Cooperative Performance : A Systematic Literature Review. SAGE Open, (September), 1–21. https://doi.org/10.1177/21582440231192944

Jayant, C. (2025). Role of Technology in Strengthening Cooperative Societies in India: Challenges and Opportunities. International Journal For Multidisciplinary Research, 7(5), 1–6. https://doi.org/10.36948/ijfmr.2025.v07i05.56040

Junaidi, S. H., Sjah, T., & Budastra, K. (2025). Mungkinkah Koperasi Merah Putih Berhasil. JURNAL ECONOMINA, 4(November), 422–434. https://doi.org/doi.org/10.55681/economina.v4711.1802

Li, J., Wang, H., & Soh, W. (2024). Digital transformation , financial literacy and rural household entrepreneurship. Finance Research Letters Journal, 62(February), 1–7. https://doi.org/https://doi.org/10.1016/j.frl.2024.105171

Li, Y., Westlund, H., & Liu, Y. (2019). Why some rural areas decline while some others not : An overview of rural evolution in the world. Journal of Rural Studies, 68(August 2018), 135–143. https://doi.org/https://doi.org/10.1016/j.jrurstud.2019.03.003

Li, Z. (2026). Digital rural development and agricultural economic resilience. International Review of Economics and Finance, 106, 1–16. https://doi.org/https://doi.org/10.1016/j.iref.2025.104851

Liu, Y., Garnevska, E., & Shadbolt, N. (2024). Journal of Co-operative Organization and Management Organizational structures of agriculture cooperatives in China : Evidence from the green vegetable sector. Journal of Co-Operative Organization and Management, 12(May), 1–10. https://doi.org/https://doi.org/10.1016/j.jcom.2024.100246

Manjuladevi, H. (2025). Digital Transformation of Cooperatives in the Global South. The Academic: International Journal of Multidisciplinary Research, 3(1), 1–11. https://doi.org/https://doi.org/10.5281/zenodo.17300727

Martino, G. (2024). The institutional analysis of rural development processes: an interpretation of the writings of Flaminia Ventura. Italian Review of Agricultural Economics, 79(3), 19–29. https://doi.org/10.36253/rea-15489

Martos-pedrero, A., Cort, F. J., Abad-segura, E., & Belmonte-ure, L. J. (2025). Internationalization , innovation , and resilience : Financial performance of agricultural cooperatives in southeastern Spain ’ s rural economy. Journal of Rural Studies, 117(January). https://doi.org/https://doi.org/10.1016/j.jrurstud.2025.103682

Mulyana, I., & Arr, T. (2025). Analisis Masalah Kelembagaan dan Manajerial Koperasi di Indonesia Berdasarkan Studi Literatur. J-COOP Journal of Co-Operatif, 1(2), 293–308. https://doi.org/https://doi.org/10.32670/jc.v1i2.33

Pakabu, D. V. L., Sabandar, S. Y., & Pasae, Y. (2025). Analisis Pembentukan Koperasi Desa Merah Putih : Studi Kasus Pemberdayaan Ekonomi Masyarakat Kampung di Kabupaten Manokwari Selatan. Jurnal Ekonomi Holistik (ECOHOLIC), 1(2), 287–292. https://doi.org/https://doi.org/10.1610/9m57ax15

Paraschou, M., Sergaki, P., Kalogeras, N., Nastis, S. A., & Staboulis, C. (2025). Agricultural Cooperatives : Roadblocks to Achieving Sustainability. Sustainability 2025, 17(8012), 1–15. https://doi.org/https://doi.org/10.3390/ su17178012

Prihandono, D., Airyq, I. M., Wijaya, A. P., Witiastuti, R. S., & Putri, V. W. (2025). Enhancing Local Economic Growth Through Digital Cooperative-Based MSME Development in Support of The Village SDGS Program. Indonesian Journal of Devotion and Empowerment, 1(1). https://doi.org/https://doi.org/10.15294/ijde.v1i1.33180

Rad, D. (2025). Reinforcing Rural Resilience : A Framework for Future-Ready Rural Policy. Future Economic Rural Network, 1–9.

Regita. (2025). Gresik Pecahkan Rekor Nasional: 239 Koperasi Merah Putih Terbentuk Serentak. Https://Suaragresik.Gresikkab.Go.Id/.

Robinson, V., & Dokubo, C. (2025). Roles of Cooperatives in Rural Development in Ikwerre and Emohua Local Government Areas , Rivers State. Journal of Public Administration and Social Welfare Research, 10(9), 12–21. https://doi.org/10.56201/jpaswr.v10.no9.2025.pg12.21

Rostami, K., & Salehi, L. (2024). Rural cooperatives social responsibility in promoting Sustainability-oriented Activities in the agricultural sector : Nexus of community , enterprise , and government. Sustainable Futures, 7(December 2023).

Saputra, R., & Havlíček, T. (2024). Strengthening Rural Governance for Rural Development Through Collaborative Strategy : the Application of Soft System Methodology and Textual Network Analysis. Systemic Practice and Action Research, 37(6), 1175–1193. https://doi.org/10.1007/s11213-024-09696-w

Saputra, R., Havlíček, T., & Marhadi, M. (2025). Collaborative Rural Governance Strategy to Enhance Rural Economy Through Village-Owned Enterprise Using Soft System Methodology. DANUBE, 16(2), 126–153. https://doi.org/10.2478/danb-2025-0007

Segovia-vargas, M. J., Miranda-garcía, I. M., & Oquendo-torres, F. A. (2023). Sustainable finance : The role of savings and credit cooperatives in Ecuador. Annals of Public and Cooperative Economics, (July 2022), 951–980. https://doi.org/10.1111/apce.12428

Sukri, A. I., Kusumastuti, R., & Lutfi, A. (2025). A Deconstruction of Rural Governance Policy to Drive Local Economies. Journal of Sustainable Development and Regulatory Issues, 3(2), 372–399. https://doi.org/https://doi.org/10.53955/jsderi.v3i2.111

Vercher, N. (2022). Territorial Social Innovation and Alternative Food Networks : The Case of a New Farmers ’ Cooperative on the Island of Ibiza ( Spain ). Agriculture 2022, 12(748). https://doi.org/https://doi.org/10.3390/ agriculture12060748

Wang, L., Luo, J., & Liu, Y. (2021). Agricultural cooperatives participating in vegetable supply chain integration : A case study of a trinity cooperative in China. PLoS ONE, 1–20. https://doi.org/. https://doi.org/ 10.1371/journal.pone.0253668

Yin, S., Li, Y., Chen, X., & Yamaka, W. (2024). Collaborative Digital Governance for Sustainable Rural Development in China : An Evolutionary Game Approach. Agriculture, 14(1553). https://doi.org/https:// doi.org/10.3390/agriculture14091535

Downloads

Published

2026-04-27

How to Cite

Cholifah, A. N., Indarto, T., Setyoningrum, N. E., Sukaris, Suwandi, & Widiyawati, W. (2026). The Merah Putih Village Cooperative-Based People’s Economic Model: Institutional Strategy and Regional Policy for Sustainable Village Development. Ilomata International Journal of Management, 7(2), 675–682. https://doi.org/10.61194/ijjm.v7i2.2197

Issue

Section

Articles