Situbondo Regent Regulation No. 36 of 2025: Strengthening Rural Economic Sovereignty through KDMP

The Situbondo Regency Government has officially enacted a strategic policy instrument: Situbondo Regent Regulation Number 36 of 2025. This regional regulation comprehensively governs the Implementation of Red and White Village/Urban-Village Cooperatives, widely known by the acronym **KDMP**. The issuance of this legal umbrella is not merely an administrative formality; it is a strategic blueprint designed to fortify the economic resilience pillars at the most fundamental community level. This policy is rooted in the values of mutual cooperation (*gotong royong*) and family principles that have long been the sociological foundation of rural communities in Situbondo.

The presence of this operational regulation brings a fresh perspective and high hopes for the realization of regional economic independence. The Situbondo Regency Government expects that the local economic wheels will no longer be dominated or intervened by large external capital forces that often marginalize small business actors in villages. Because the existence of the KDMP is crucial for public welfare, it is vital for village stakeholders to dissect, study, and understand the managerial rules and operational boundaries contained within this regulation.

With a comprehensive understanding of regulatory literacy, village governments can immediately formulate tactical steps, prepare relevant supporting documents, and execute the establishment stages within the current fiscal year to realize communal prosperity.

Philosophical and Constitutional Definition of KDMP

Before formulating business schemes and field action plans, local policymakers must align their understanding of the legal definition of this entity. A Red and White Village/Urban-Village Cooperative (KDMP) is a legally incorporated cooperative business entity whose membership is exclusively limited to citizens residing within the same administrative village or urban-village boundaries.

Authentic proof of residency is a non-negotiable requirement and must be administratively proven through the verification of a valid National Identity Card (KTP).

This strict residency requirement is philosophically designed to ensure that the circulation of capital, the distribution of remaining business results (*SHU*), and all social benefits generated by this institution flow and remain 100% within the local area. The populist economic approach championed by this regulation ensures that KDMP operates as an antithesis to free-market capitalism. The supreme sovereignty of the organization rests entirely on the collective decision of the **Member Meeting**, where every citizen has an equal and democratic voting right, ensuring that prosperity can be enjoyed inclusively by all layers of the village population.

Three Strategic Approaches to Forming KDMP

The Regional Government recognizes that the capacity of apparatus resources, commercial infrastructure readiness, and the history of economic dynamics vary across villages. Based on the flexibility explicitly stated in Article 9 of the regulation, the formation of a KDMP entity can be carried out through three approaches:

• Establishment of a New Cooperative: This is for villages or urban-villages that do not yet have a cooperative entity. This pioneering approach requires extra effort from village pioneers to educate residents, organize founding member meetings, and draft articles of association to be legalized by a notary.
• Development of Existing Cooperatives: This is applied in areas with active cooperatives that have a “good” performance record. The focus is on injecting capital and providing managerial support to expand business units to meet the progressive vision of KDMP.
• Cooperative Revitalization: This “healing” approach focuses on the emergency repair and rescue of existing cooperatives that are currently inactive or in decline. Revitalization requires massive restructuring of management, auditing liabilities, and managerial training to restart the cooperative’s economic heartbeat.

Organization Governance and Anti-Nepotism Rules

One of the most significant updates in this regulation is the structural oversight involving village leadership, balanced by strict professional ethics to prevent corruption, collusion, and nepotism. These governance rules are detailed to maintain the purity of decision-making and minimize conflicts of interest within the village hall.

In the management structure, the Chairperson of the Supervisory Board is held ex-officio by the Village Head. The total number of supervisors must always be an odd number (minimum of three), with mandatory female representation. On the operational side, the number of managers must also be an odd number (minimum of five), consisting of a Chairperson, Vice Chairperson for Business, Vice Chairperson for Membership, Secretary, and Treasurer.

The regulation strictly prohibits managers from having blood or marital relations (first degree) with other managers or supervisors. Furthermore, daily management must not consist of active Village Leaders. As a naming standard, the institution must start with “Koperasi,” followed by “Desa Merah Putih” or “Kelurahan Merah Putih,” and end with the specific name of the local village.

Productive Business Units Based on Regional Potential

The KDMP is designed to move beyond simple savings and loan services. Managers are encouraged to execute various innovative productive units. The business plan must be synchronized with an analysis of village potential and community needs, choosing from several units:

• Basic Necessity Outlets: Trading essential daily goods. These outlets are effective in stabilizing prices and preventing scarcity or price manipulation by market syndicates.
• Affordable Medicine and Village Clinics: Providing professional and affordable primary medical assistance for low-income residents.
• Logistics and Warehousing: Including the provision of cold storage facilities to stabilize the shelf life of harvest products, protecting them during peak harvest seasons.
• Other Innovative Units: Allowing for creative exploration adapted to local characteristics, such as managing tourism destinations or integrated waste recycling centers.

Commitment to Legal Protection and Local Safeguards

Starting a cooperative faces threats from modern retail chains that can systematically kill small businesses. To counter this, the Situbondo Regency Government is fully committed to providing maximum legal protection for KDMP operations.

This protection includes policies that designate certain economic sectors as exclusive to cooperatives. This safeguard prevents established community-managed businesses from being taken over by larger external entities. Furthermore, during emergencies or economic crises, the regional government pledges to provide rescue packages, including credit restructuring, capital injections, and infrastructure reconstruction support.

Execution through the Special Village Deliberation (Musdesus)

To avoid legal confusion, it is emphasized that this Regent Regulation has been officially effective since its enactment on June 26, 2025. Funding for empowerment programs is legally sourced from the Regency APBD and other legitimate, non-binding sources according to Indonesian law.

Since the legal umbrella is now wide open, it is time to build the blueprint for economic independence in each village. Crucially, the formation of a KDMP cannot be decided unilaterally by elites. It must be discussed through the highest democratic mechanism: the Special Village Deliberation (Musdesus). This forum is the strategic arena to present the program’s benefits and reach a solid consensus among all community elements.

Conclusion

Analyzing Situbondo Regent Regulation Number 36 of 2025 leads to the conclusion that the KDMP is a systematic movement for fundamental populist economic reform. With transparent governance, strict anti-nepotism rules, and full regional protection, this entity has the ideal launchpad to become a central force in the local economy. It is now up to village stakeholders to accelerate the realization of this institution for a resilient and socially just financial future.

Governance Requirements Summary Table

Visit the Village Regulations page for official access.