Enabling Village Cooperatives Through Digital Transformation

SIMALUNGUN - The modernization of village cooperatives has become one of the key drivers in boosting local economic activity. This spirit of digital transformation is now taking shape in Simalungun.

The digitalization of village cooperatives in Simalungun Regency, North Sumatra, is being realized through the Simkopdes program — an information and management system for village cooperatives developed by the Ministry of Cooperatives and SMEs.

This milestone took center stage during the Workshop on Accelerating the Operationalization of KDKMP (Red-and-White Village/Subdistrict Cooperatives) held on October 4. A total of 413 KDKMP representatives from various regions attended, marking a major step toward more modern and integrated cooperatives.

Henra Saragih, Deputy for Institutional and Cooperative Digitalization at the Ministry of Cooperatives and SMEs, described digitalization as a vital foundation for building resilient and transparent cooperatives.

“Simkopdes is more than just a system upgrade. It’s the foundation for building a broader ecosystem of partnerships, financing, and business networks among village cooperatives,” Henra stated in a written release.

He explained that cooperatives adopting digital systems will find it easier to connect with the banking sector, financial institutions, and industry partners. This connectivity is crucial for enabling village cooperatives to become part of the national supply chain.

The workshop also involved several strategic partners such as BRI, Bulog, and PT Pos Indonesia. This cross-sector collaboration reflects a shift in how village cooperatives are viewed — no longer as traditional entities, but as potential business partners in strengthening local economies.

One notable example of modern cooperative innovation is Koperasi Konsumen Kana from Surabaya, which pioneered the “Koperasi Manis” program. The initiative introduces a partnership-based retail model among cooperatives, emphasizing professionalism and sustainability.

Tresya Wijaya, Executive Chair of Kana, explained that “Koperasi Manis” helps village cooperatives expand their roles beyond the savings and loan sector.

“We want to help village cooperatives level up. Through a consignment system, KDKMP can operate retail stores supplied by us without having to bear heavy capital risks,” said Tresya.

Under the program, Kana provides consignment goods worth up to Rp200 million and operational support of Rp2 million for cooperatives that pass the selection process. Essential goods such as sugar, soy sauce, and canned foods are distributed through an integrated logistics system. So far, over 400 KDKMP in East Java have adopted this model.

The integration of Simkopdes from the government and Koperasi Manis from the modern cooperative sector creates strong synergy. The government acts as a digitalization facilitator, while cooperatives like Kana strengthen the commercial and supply chain aspects — together building a more connected and competitive cooperative ecosystem.