Not a true cooperative

The Red and White Cooperatives program, mandated by the government in July 2025, aims to stimulate local economies and empower grassroots communities through access to basic goods and microcredit. However, the initiative's expansion appears top-down and manipulates its original purpose, raising concerns about civil governance and fiscal discipline.

Cooperatives are now permitted to provide primary healthcare, though their medical facilities are still limited. This duplication of services by cooperatives may undermine the existing national insurer and public health infrastructure, raising questions about the allocation of state resources. The proposal to route civil service salaries and pensions through cooperatives, recently rejected by Finance Minister Suahasil Nazara, could lead to administrative bottlenecks and extra fees.

Additionally, the program's diversification into mineral mining, crude palm oil, and heavy logistics, along with the involvement of active military personnel, raises alarms about the program's expansion and its potential to revive the military's dual function. The financial burden of the program is substantial, with an initial allocation of hundreds of trillions of rupiah and the diversion of up to 58 percent of the national village funds, which could undermine village-level infrastructure and services.