Integrating Inclusive Environmental Rural Development in the KDMP Cooperative Model

^1,3-7 University of Riau, Department of Governmental Science, 28291, Pekanbaru, Indonesia
² Communication Program, Faculty of Leadership and Management, Universiti Sains Islam Malaysia, 71800, Nilai, Malaysia

Abstract

The Koperasi Desa Merah Putih (KDMP) initiative, established through Presidential Instruction No. 9/2025 and Ministerial Regulation No. 1/2025, represents Indonesia’s national strategy for advancing environmental sustainability, rural equity, and poverty reduction. This study examines the integration of inclusive and green development principles within the KDMP cooperative model. Employing a qualitative-explanatory approach through literature reviews, focus group discussions, stakeholder interviews, and KDMP dashboard analysis, the research evaluates the policy’s implementation progress and environmental outcomes. Findings reveal that while KDMP legalization has been achieved nationwide— recording 1,866 registered cooperatives in Riau Province—operational activation and regional adaptation remain uneven. Success depends on inclusive governance practices, environmental efficiency in logistics systems, and adaptive institutional frameworks. Integrating KDMP with Village-Owned Enterprises (BUMDes), optimizing green supply chains, and promoting renewable energy-based warehousing are critical for achieving sustainable rural economic transformation. The study proposes a multi-level monitoring and evaluation framework that embeds environmental, inclusivity, and governance indicators to improve cooperative performance and accelerate the transition toward sustainable, equitable rural development.