Challenges in Implementing the Merah Putih Village Cooperative for Village Economic Development in Kampar

Abstract

The Merah Putih Village/Urban Ward Cooperative was designed as an instrument for strengthening the village economy, but its implementation in the regions has only just entered the early operational stage. This study aims to analyze the challenges of implementing the program in Kampar Regency across three dimensions: access to capital and savings and loans, the supply chain and marketing of village products, and the capacity and participation of members. The novelty of this study lies in its integrated mapping of these three dimensions at the regency level during the program's early stage, whereas previous studies have tended to discuss these issues separately. Its contribution takes the form of an analytical framework for implementation challenges and strategic recommendations for local government. The study uses a qualitative approach through literature review and document analysis of regulations, official publications from central and local government, media coverage, and scientific literature, which were analyzed thematically. The findings show that the three dimensions are interrelated: loan-based financing requires business readiness and governance, supply chain development depends on the fit between business units and village potential and infrastructure, while top-down formation requires strengthening the capacity of administrators and member participation. The study concludes that the success of cooperatives in Kampar is determined by the alignment of the national design with local conditions and by sustained mentoring. The findings are analytical in nature and need to be tested through field research.

Keywords: village cooperative; Merah Putih Cooperative; village economy;

       policy implementation; Kampar Regency