Bridging the policy gap of Koperasi Desa/Kelurahan Merah Putih (KDMP) - from national design to village level practices

Sep 10, 2026

Uploaded by Logic

This study examines the policy implementation gap between the national design of the Koperasi Desa/Kelurahan Merah Putih (KDMP) program and its execution at regional and village levels, focusing on Riau Province. Employing an exploratory qualitative method, it draws evidence from literature review, focus group discussions, and in-depth interviews with key stakeholders. Gap analysis is conducted across five dimensions: policy content and context, institutional capacity, stakeholder participation, stakeholder roles and interests, and collaboration and digital governance. Results show a major discrepancy: rapid legal establishment outpaces limited operational readiness. Although 1,866 KDMP units are formally established, only a small proportion operates in business activation, financing access, and partnerships.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages22

Reading Time55 min

AccessFree to download

Introduction

Policy background of KDMP

Legal and implementation framework

Financing and operationalization

Digital governance direction

Development in Riau Province

KDMP formation data

Pilot and launch regions

Otoritas : Jurnal Ilmu Pemerintahan Vol. 16 , No. 1 , 2026 DOI: [https://doi.org/10.26618/ojip.v16i1.19676](https://doi.org/10.26618/ojip.v16i1.19676) Bridging the policy gap of Koperasi Desa/Kelurahan Merah Putih (KDMP): from national design to village level practices Auradian Marta 1*), Raja Muhammad Amin2, Rury Febrina3, Sofyan Hadi4, Margina Ferlan5, Meris Essio Mento6 1,2,3,4,5,6 Department of Government Studies, Universitas Riau, Indonesia Abstract This study examines the policy implementation gap between the national design of KDMP program and its implementation at regional and village levels, particularly in Riau Province. Using an exploratory qualitative approach, data were collected through literature review, focus group discussions, and in-depth interviews with key stakeholders. The analysis applies a gap analysis framework across five dimensions: policy content and context, institutional capacity, stakeholder participation, stakeholder roles and interests, and collaboration and digital governance. The findings reveal a significant discrepancy between rapid legal establishment and limited operational readiness. Although 1,866 KDMP units have been formally established in Riau, only a small proportion are operational in terms of business activation, financing access, and partnerships. This study contributes by developing a multilevel governance framework to explain how national policy design, local institutional capacity, and multi-actor collaboration shape policy outcomes. Strengthening institutional capacity, regulatory alignment, and collaborative networks is essential for ensuring the effectiveness of KDMP as a driver of inclusive rural development. Keywords: policy gap, national design, KDMP, rural economic development, village level practices *)Corresponding Author E-mail: [auradian.marta@lecturer.unri.ac.id](auradian.marta@lecturer.unri.ac.id) Introduction The KDMP program represents a state-driven policy initiative aimed at restructuring rural economic governance through cooperative institutionalization. This program was stipulated through Presidential Instruction Number 9 of 2025 concerning the Acceleration of the Establishment of KDMP, which targets the establishment of 80,000 new cooperatives or the revitalization of old cooperatives throughout Indonesia. This Presidential Instruction emphasizes acceleration through data integration between institutions, budget support from the State Budget, Regional Budget, and Village Fund, as well as continuous assistance for cooperative administrators. Conceptually, KDMP is designed as a rural economic hub that integrates multiple business functions, including basic goods provision, financial services, logistics distribution, and local resource-based enterprises. Through this approach, cooperatives are expected to function as an instrument of inclusive economic development that can improve the welfare of rural communities. As a follow-up, the Ministry of Cooperatives and SMEs issued Implementation Guidelines for the Minister of Cooperatives of the Republic of Indonesia Number 1 of 2025 concerning the Establishment of KDMP and the Circular Letter of the Minister of Cooperatives of the Republic of Indonesia Number 1 of 2025 concerning Procedures for the Establishment of KDMP, which serves as a technical guide in the formation, management of membership, and institutional governance of cooperatives. On the financing side, Minister of Finance Regulation Number 49 of 2025 concerning Loan Procedures in the Context of KDMP Funding was issued, which provides a legal basis for village cooperatives to access official funding sources through the governmentfinancial institution synergy mechanism. (2) This regulation emphasizes that the KDMP is not only formed as a formality, but is directed to be truly operational, transparent, and able to become the centre of village economic activities. In general, the KDMP program has the main goal of shortening the su

FAQs

What gap does the study focus on in the KDMP program?

The study focuses on the discrepancy between the national design of KDMP and how it is implemented at regional and village levels in Riau Province.

What research approach and data sources are used?

An exploratory qualitative approach is used, with data collected through literature review, focus group discussions, and in-depth interviews with key stakeholders.

Why are many KDMP units not fully operational in Riau?

The findings indicate a significant discrepancy where rapid legal establishment occurs faster than operational readiness, limiting business activation, financing access, and partnership formation.

Sep 10, 2026

Uploaded by Logic