Minister Circular 6/2025: Technical Guidelines for Merah Putih Village Cooperatives

The formation of the Merah Putih Village Cooperative is a vital step in supporting rural businesses and public services. In this context, the Minister of Villages and Rural Development (PDT) Circular Number 6 of 2025 emphasizes the acceleration of cooperative establishment. This is a strategic move to increase rural economic independence. These cooperatives are expected to serve as a hub for managing local resources, specifically in providing basic necessities, healthcare services, and other ventures that enhance community welfare.

The Ministry of Villages plays an active role in facilitating this development. Specifically, their involvement includes inventorying village potential, conducting socialization, and providing professional assistance. By establishing a Merah Putih Village Cooperative, residents can independently manage economic activities. This focus goes beyond profit, aiming for social empowerment. For instance, cooperatives can manage village clinics, pharmacies, or even cold storage facilities to improve access to essential goods and services.

To achieve these goals, this Circular serves as a mandatory guide for Village Heads, Village Consultative Bodies (BPD), and professional facilitators. They are tasked with organizing a Special Village Assembly to discuss the establishment and development of the cooperative. Through strong collaboration, this initiative is expected to run effectively and bring a positive impact to the rural economy in 2025 and 2026.

Objectives and Scope of Cooperative Establishment

The primary goal of this Circular is to provide technical procedures for the Merah Putih Village Cooperative. Key highlights include:

• Potential Identification: Village governments and the BPD must collect data on village characteristics by involving various groups. This includes farmers, fishermen, community leaders, and marginalized groups to understand local problems and potentials.
• Special Village Assembly (Musyawarah Desa Khusus): This assembly must be held to reach an agreement on the cooperative’s formation. Key topics include determining capital sources, membership rules, and the organizational structure.
• Professional Facilitator Involvement: The Circular encourages the active role of professional assistants to help with socialization. This ensures that every stage of formation is inclusive and participation is high.

Every step taken is not only about the economy but also about improving the quality of life. Cooperatives are designed to be social empowerment tools that create a healthier economic climate for all community members.

Implementation Mechanisms at the Village Level

Once the Special Village Assembly reaches a consensus, the next phase is implementation. Several critical factors must be addressed in the Merah Putih Village Cooperative operations:

1. Official Establishment: The cooperative must be officially registered and structured with complete legal documentation according to prevailing laws.
2. Capital Sources: Funding can originate from the village budget (APBDes) and community contributions. Villages are encouraged to allocate a minimum budget to support food security initiatives through the cooperative.
3. Business Activities: The cooperative needs to determine which sectors to enter—whether micro, small, or medium enterprises—by utilizing surrounding local resources.
4. Synergy with BUMDes: Collaboration with Village-Owned Enterprises (BUMDes) and other economic institutions is crucial. This partnership can strengthen distribution systems and increase market access for local products.

Conclusion

The formation of the Merah Putih Village Cooperative is a serious government effort to support economic self-reliance. Through Circular Number 6 of 2025, all stakeholders are expected to play an active role. With clear technical instructions and community involvement, these cooperatives will become solutions to economic challenges. Ultimately, a well-operating cooperative will not only drive growth but also turn the village into a self-sustaining economic center.

Visit the Village Regulations page for official access.