Novie Afif Mauludin, Ary Wahyudi, Hafizatul Ulum

Legal Policy Model of the Red and White Village Cooperative (KDMP): Implementation Factors and Comparative Insights from Brazil, Denmark, and Japan

Introduction

Legal policy model of the red and white village cooperative (kdmp): implementation factors and comparative insights from brazil, denmark, and japan. Examines Indonesia's Red and White Village Cooperative (KDMP) legal policy model, implementation, and comparison with Brazil, Denmark, and Japan. Insights for sustainable governance.

Abstract

This study examines the legal policy model of the Red and White Village Cooperative (KDMP), the determinants of its implementation, and Indonesia’s comparative position vis-à-vis cooperative systems in Brazil, Denmark, and Japan. The urgency of this research stems from the Indonesian government’s large-scale initiative to establish and revitalize more than 80,000 village cooperatives through a centralized, top-down regulatory framework, implemented amid persistent structural challenges, including regulatory ambiguity, limited managerial and digital capacity, uneven infrastructure, and variations in community participation. Without careful legal policy evaluation, this model risks reproducing structural weaknesses previously observed in Indonesia’s Village Unit Cooperatives (KUD). Employing a normative–empirical legal methodology that integrates statutory analysis, conceptual inquiry, comparative law, and a sociological approach supported by interviews and field-based questionnaires in selected villages in West Nusa Tenggara, the study finds that KDMP’s legal policy is predominantly shaped by Thomas R. Dye’s institutional and process models. This centralized framework enables rapid nationwide implementation but reveals a structural misalignment between legal design and practical readiness at the village level. Implementation outcomes are influenced by both juridical factorsparticularly regulatory clarity and policy coherence and non-juridical factors, including human resources, digital infrastructure, and levels of member participation. A comparative analysis based on Ragone and Smorto’s functional framework demonstrates that, while Indonesia shares normative cooperative objectives with Brazil, Denmark, and Japan, differences in governance structures significantly affect sustainability outcomes. Brazil and Denmark illustrate the advantages of autonomy-based, bottom-up cooperative models operating under flexible legal regimes. At the same time, Japan represents a hybrid trajectory in which early state coordination gradually transitions toward member-centered governance. This study contributes an integrated legal-policy model of KDMP that connects implementation realities with comparative insights. The findings indicate that strengthening member-based governance, simplifying overlapping regulations, and gradually reducing excessive centralization are essential to enhance sustainability, community ownership, and the long-term effectiveness of village-based cooperatives in Indonesia. Journal keywords: Legal Policy Model, Comparative Law, and Merah Putih Village Cooperative

Review

This study offers a timely and comprehensive examination of Indonesia's Red and White Village Cooperative (KDMP) legal policy model, critically assessing its implementation factors and situating Indonesia within a comparative framework alongside Brazil, Denmark, and Japan. The research effectively addresses the pressing need for policy evaluation given the Indonesian government's ambitious, top-down initiative to establish thousands of new cooperatives amid persistent structural challenges. By employing a robust normative–empirical legal methodology that integrates statutory analysis, conceptual inquiry, comparative law, and a sociological approach supported by field-based data, the paper provides a nuanced understanding of both the legal design and practical realities of cooperative development. Its key contribution lies in presenting an integrated legal-policy model that skillfully connects local implementation challenges with broader international insights. The findings reveal a significant structural misalignment within the KDMP's centralized legal policy, predominantly shaped by Dye's institutional and process models. While this framework facilitates rapid nationwide implementation, it critically overlooks the practical readiness at the village level, risking the reproduction of past failures observed in Indonesia’s Village Unit Cooperatives. The study meticulously identifies both juridical factors, such as regulatory clarity and policy coherence, and non-juridical factors, including human resources, digital infrastructure, and member participation, as crucial determinants of implementation outcomes. Furthermore, the comparative analysis using Ragone and Smorto’s functional framework highlights stark contrasts: while Indonesia shares normative objectives with the comparator nations, its governance structure, unlike the autonomy-based, bottom-up models of Brazil and Denmark or Japan's evolving hybrid model, significantly impedes sustainability. Based on its insightful analysis, the study concludes with essential recommendations for enhancing the long-term effectiveness and sustainability of village-based cooperatives in Indonesia. It strongly advocates for strengthening member-based governance, simplifying the existing complex regulatory landscape, and gradually reducing excessive centralization. These proposed policy adjustments are crucial for fostering greater community ownership and ensuring the resilience of these vital economic entities. This research provides a valuable roadmap for policymakers and practitioners, underscoring the imperative of balancing rapid expansion with careful structural reform to cultivate genuinely sustainable and effective cooperative ecosystems.

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