Not a true cooperative

The Red and White Cooperatives initiative, mandated by Indonesia's government in July 2025, is not living up to its original promise as a genuine cooperative, but rather functions as an expansion of state control. While the program's aim was to stimulate local economies and empower communities, it now risks undermining existing healthcare providers by duplicating services offered by over 10,000 community health centers and accredited private clinics already serving the National Health Insurance system.

The expansion into sectors like mineral mining, palm oil, and heavy logistics is also problematic, as it attempts to scale cooperatives into conglomerates, diverting resources from rehabilitation of public infrastructure. The involvement of active military personnel in the program further raises concerns, as it reintroduces military command-and-control into civilian commerce, violating principles of civilian autonomy and participatory democracy.

Furthermore, the financial burden of the program is immense, with an initial allocation of hundreds of trillions of rupiah and the diversion of up to 58 percent of the Rp 60 trillion village fund pool away from village-level infrastructure. These issues collectively threaten the integrity of the cooperative model and call into question its efficacy and sustainability.