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Despite its strong potential to affect local economies, understanding of how KDMP impacts multiplier transmission mechanisms remains limited. This study develops a conceptual model mapping KDMP multiplier effect pathways using qualitative systematic literature review.",{"@graph":69,"@context":123},[70,84,106],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/transmission-mechanisms-of-the-merah-putih-village-cooperative-multiplier-effect-on-the-local-economy-conceptual-analysis/229084/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/transmission-mechanisms-of-the-merah-putih-village-cooperative-multiplier-effect-on-the-local-economy-conceptual-analysis/229084.png","ImageObject",300,407,{"name":92,"@type":93},"Ethan Miller","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-27","2026-09-10",true,{"@type":102,"interactionType":103,"userInteractionCount":105},"InteractionCounter",{"@type":104},"ViewAction",18,{"@type":107,"mainEntity":108},"FAQPage",[109,115,119],{"name":110,"@type":111,"acceptedAnswer":112},"What is the main objective of this study on KDMP?","Question",{"text":113,"@type":114},"To analyze and formulate a conceptual model that maps how KDMP’s multiplier effect is transmitted to the local economy through specific mechanisms.","Answer",{"name":116,"@type":111,"acceptedAnswer":117},"What qualitative approach does the study use?",{"text":118,"@type":114},"It uses a qualitative method through a systematic literature review to identify and synthesize pathways of cooperative economic impact.",{"name":120,"@type":111,"acceptedAnswer":121},"What three transmission pathways are identified for KDMP’s multiplier effects?",{"text":122,"@type":114},"Input provision and consumption; financial intermediation and investment; and value chain aggregation and integration.","https://schema.org",{"og:url":83,"og:type":125,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":127,"canonical":83},"index,follow",{"doc_id":129,"site_id":62},229084,1789035724,{"code":4,"msg":5,"data":132},{"doc_id":129,"user_id":133,"nickname":92,"user_avatar":134,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":135,"file_id":136,"file_url":137,"file_type":138,"file_size":139,"view_count":105,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":140,"language":141,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":142,"faqs":143,"seo_title":144,"seo_description":67,"update_tm":130,"read_time":145,"preview_page_count":4},687207017582,"https://ap-avatar.wpscdn.com/davatar_994ba38a5ba835b3df7d355c54d3ed8d","Transmission mechanisms of the Merah Putih Village cooperative's multiplier effect on the local economy: A conceptual analysis  \nDaniel Simamora  \nGovernment of Bandung Regency, Jl. Raya Soreang No. 17, Kabupaten Bandung, Jawa Barat 40912  \nIndonesia  \n*[e-mail: daniel.simamora.1998@gmail.com](e-mail: daniel.simamora.1998@gmail.com)  \nReceived 23 October 2025 Revised 06 November 2025 Accepted 24 December 2025  \nABSTRACT  \nThe Merah Putih Village Cooperative (KDMP) program is a strategic program initiated by the Indonesian Government to accelerate economic development starting from the village level, aligned with the national long-term development plan agenda. Although this program has significant potential for economic impact, a fundamental understanding of its transmission mechanisms to the local economy remains limited. This study aims to analyze and formulate a conceptual model that maps the multiplier effect transmission mechanisms generated by the KDMP. Using a qualitative method through a systematic literature review, this study identifies and synthesizes various pathways of cooperative economic impact on the local economy. The study results show that KDMP, with its business model, creates multiplier effects through three primary transmission pathways. First, the input provision and consumption. The second is financial intermediation and investment, and the third is value chain aggregation and integration. These pathways collectively generate reinforcing direct, indirect, and induced multiplier effects. This study also formulatesa conceptual framework that can serve as an analytical tool for policymakers to design effective support interventions and as a foundation for future research to measure the actual magnitude of the KDMP’s multiplier effect.  \nKeywords: Cooperative, Local Economy, Multiplier Effect  \n1. INTRODUCTION  \nRural economies, particularly in Indonesia, whose economic structure is people-based and agrarian, have long faced persistent structural economic challenges, such as high poverty rates, dependence on the agricultural sector with high price volatility, limited access to business capital, and supply chains dominated by informal intermediaries who often disadvantage producers (Arham et al., 2020; Theresia et al., 2025) . In the last decade, the Indonesian government has shifted its development focus by positioning villages as both subjects and epicenters of local economic growth. This development focus, driven from the periphery, is a manifestation of the effort to realize economic equity and justice, which is stated in the National Long-Term Development Plan (RPJPN) 2025-2045. The Golden Indonesia 2045 Vision targetsan economic transformation that is not merely strong in the aggregate but also inclusive and rooted in local potential. (Rencana Pembangunan Jangka Panjang Nasional Tahun 2025-2045, 2024) . Within this framework, strengthening village-level economic institutions is necessary. As a primary policy to achieve this goal, the government has launched the Merah Putih Village Cooperative (KDMP) program, a largescale program in cooperative development targeting the establishment of up to 80,000 cooperative units in all villages and sub-districts across Indonesia. This program is not only a sectoral initiative but also an integrated part of the national economic development architecture. In the National Medium-Term Development Plan (RPJMN) 2025-2029, the role of cooperatives is clearly mandated in National Priority 3 to develop the agro-maritime industry and National Priority 6, which focuses on village development for economic growth and equity. Thus, the KDMP is positioned as a policy spearhead to enhance food security, shorten supply chains, create employment, control inflation, expand financial inclusion, and accelerate economic turnover at the grassroots level by serving as an aggregator and consolidator of local village products. (Peraturan Presiden Nomor 12 Tahun 2025 Rencana Pembangunan Jangk","cbCaihza4mqKHnjg","https://ap.wps.com/l/cbCaihza4mqKHnjg","pdf",243793,11,"English","# Abstract\n# Introduction\n## Rural economic challenges and policy direction\n## KDMP as village-level institutional support\n## Cooperatives and local multiplier effects\n## Economic multiplier effect theory","[{\"question\":\"What is the main objective of this study on KDMP?\",\"answer\":\"To analyze and formulate a conceptual model that maps how KDMP’s multiplier effect is transmitted to the local economy through specific mechanisms.\"},{\"question\":\"What qualitative approach does the study use?\",\"answer\":\"It uses a qualitative method through a systematic literature review to identify and synthesize pathways of cooperative economic impact.\"},{\"question\":\"What three transmission pathways are identified for KDMP’s multiplier effects?\",\"answer\":\"Input provision and consumption; financial intermediation and investment; and value chain aggregation and integration.\"}]","Transmission Mechanisms of the Merah Putih Village Cooperative Multiplier Effect on the Local Economy - Conceptual Analysis | PDF",28]