The Merah Putih Village Cooperative-Based People's Economic Model - Institutional Strategy and Regional Policy for Sustainable Village Development

Sep 10, 2026

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Strengthening the people’s economy is central to sustainable village development, addressing regional disparities and community welfare. The Merah Putih Village Cooperative (KDMP) is framed as an institutional mechanism for mobilizing local economic potential through participation and independence. Uneven institutional capacity, inconsistent policy support, and weak integration with the local economy limit KDMP effectiveness. The study analyzes how institutional strategies and regional policies optimize cooperative roles and proposes a replicable people-centered collaborative governance model with actor roles and policy leverage points.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages8

Reading Time20 min

AccessFree to download

Abstract

Introduction

Challenges in rural economic independence

KDMP development context in Gresik Regency

Methods

Research design and data sources

Data collection and thematic analysis

Results

Determinants of KDMP effectiveness

Contribution

Governance insights and practical policy guidance

Ilomata International Journal of Management RECEIVED 18 February 2026 ACCEPTED 31 March 2026 PUBLISHED 30 April 2026 CITATION Kholifah AN, Indarto T, Setyoningrum NE, Sukaris, Suwandi, Widiyawati W, (2026) . The Merah Putih Village Cooperative-Based People's Economic Model: Institutional Strategy and Regional Policy for Sustainable Village Development. Ilomata International Journal of Management. 7 (2), 675-682. doi: 10.61194/ijjm.v7i2.2197 TYPE Original Research PUBLISHED 30 April 2026 DOI 10.61194/ijjm.v7i2.2197 VOL 7 Issue 2 April 2026 COPYRIGHT © 2026 Kholifah, Indarto, Setyoningrum, Sukaris, Suwandiand Widiyawati. This is an openaccess article distributed under the terms of the Creative Commons Attribution License (CC BY) . The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms. The Merah Putih Village CooperativeBased People's Economic Model: Institutional Strategy and Regional Policy for Sustainable Village Development Anik Nur Kholifah1, Tomi Indarto2, Nilam Enggarsasi Setyoningrum3, Sukaris4 *, Suwandi5, Wiwik Widiyawati6 123Research and Development Agency (Bappeda) of Gresik Regency, East Java, Indonesia, 456Universitas Muhammadiyah Gresik, East Java, Indonesia Correspondence: [sukaris21@umg.ac.id](sukaris21@umg.ac.id4)[4](sukaris21@umg.ac.id4) Abstract Introduction: Strengthening the people’s economy is a key strategy in sustainable village development to reduce regional disparities and improve community welfare. The Merah Putih Village Cooperative (KDMP) serves as an institutional instrument to mobilize local economic potential through participation and independence. However, uneven institutional capacity, varying policy support, and limited integration with the local economy hinder its effectiveness. This study examineshow institutional strategies and regional policies can optimize the role of village cooperatives. This study contributes by identifying a governance mechanism linking policy orchestration, capacity building, and ecosystem integration, and by proposing a replicable people-centered collaborative governance model that specifies actor roles, coordination mechanisms, and policy leverage points in the KDMP context. Methods: The study uses a qualitative descriptive-explanatory approach based on data from ten informants from five KDMPs and five local village government stakeholders. Data were collected through in-depth interviews, observations, documentation, and supporting questionnaires, and analyzed using thematic analysis to identify recurring institutional and policy patterns. Results: The findings indicate that although KDMPs have formal institutional structures, their effectiveness depends on managerial capacity, policy coordination, and integration within local economic networks. Novelty: These results suggest that strengthening cooperative performance requires not only improved governance but also alignment with the broader economic ecosystem. Contribution: This study offers theoretical insights into enhancing collaborative governance and practical guidance through measurable policy and institutional interventions. KEYWORDS village cooperatives; people’s economy; institutional strategy; regional policy; sustainable rural development. Introduction Gresik Regency faces serious challenges in promoting the economic independence of rural communities, primarily due to dependence on conventional supply chains, limited access to capital, and weak marketing of local products. These conditions leave some residents vulnerable to poverty and fluctuations in product prices. Village economic transformation through cooperatives is intended to empower local potential and improve community welfare, b

FAQs

What issue does the study address in KDMP development?

The study addresses uneven institutional capacity, varying policy support, and limited integration between KDMP and the local economy that reduce effectiveness.

How is the research conducted?

It uses a qualitative descriptive-explanatory approach with data from ten informants across five KDMPs and five local government stakeholders, collected via interviews, observations, documentation, and supporting questionnaires, then analyzed thematically.

What determines KDMP effectiveness according to the findings?

Effectiveness depends on managerial capacity, policy coordination, and integration within local economic networks rather than formal institutional structures alone.

Sep 10, 2026

Uploaded by Paura