The position of cooperatives in Indonesia's economic landscape is currently still far from expectations as the pillar of the nation's economy. Based on data from the last decade, the contribution of cooperative business volume to the national Gross Domestic Product (GDP) is minimal, ranging at only 1.04 percent. This phenomenon indicates a deep gap between the mandate of Article 33 of the 1945 Constitution and reality on the ground.
The fundamental issue lies in the dominance of cooperatives in the consumer savings and loan sector, accounting for around 80 percent of total existing cooperative entities. The minimal role of cooperatives in the production sector and supply chain means their existence lacks significant added value for the broader public economy. To address this, bold steps are required from the government to crack down on 'paper-only' cooperatives and encourage consolidation for institutionally healthy cooperatives.
On the other hand, there is an inequality of access to policy support. The banking sector has long enjoyed various special state facilities, whereas cooperatives—as business entities oriented toward serving members—receive minimal similar intervention. This disparity must end immediately so that cooperatives can compete fairly in the modern business ecosystem.
As a strategic solution, the government is urged to optimize the role of the Red and White Village/Sub-district Cooperatives (KDKMP) as the frontline in distributing subsidized public goods. Commodities such as fertilizer, seeds, and 3-kilogram LPG gas subsidized by public funds should be distributed through KDKMP. This approach will not only shorten the distribution chain but also minimize economic mafia practices that have often abused the maximum retail price (HET).
By making KDKMP the primary distribution channel, the state simultaneously strengthens social oversight and accountability. Cooperatives managed democratically by local communities have less incentive to engage in cartel practices. This step is seen as a crucial momentum to restore the dignity of cooperatives as an instrument of economic democracy capable of achieving social justice for all Indonesian people.
