The Merah Putih Village Cooperative is a national policy aimed at strengthening the economy of rural communities through the establishment and strengthening of cooperative enterprises. The significant role played by the government raises questions about the position and autonomy of the cooperative once it is officially recognized as a legal entity. This study aims to analyze the status of the Merah Putih Village Cooperative from the perspective of Indonesian corporate law, the consequences arising after the cooperative is recognized as an independent legal entity, and the limits of the government’s role in assisting and supervising its management. The study employs a normative legal method with a legislative and conceptual approach. Primary and secondary legal sources were analyzed qualitatively through grammatical and systematic interpretation. The results of the study indicate that the Merah Putih Village Cooperative is a private legal entity, not a public legal entity, a government agency, or a new type of legal entity. Its legal status arises through the actions of the founders, the deed of incorporation, the articles of association, and the ratification decision pursuant to cooperative law. Once approved, the cooperative possesses assets, rights, obligations, and responsibilities that are separate from the government, members, and management. The ideal model is a cooperative that receives state support, yet remains democratically managed and controlled by its members.
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