This research aims to analyze the management dynamics of Koperasi Merah Putih (KMP) Tipar, which was established through a Top-Down approach based on central government instructions. The main issue addressed is the gap between government structural policies and the sociological readiness and Human Resources (HR) capacity at the village level, which implies low community trust due to the historical trauma of past cooperative failures. The research method used is descriptive qualitative with a case study approach. Data were collected through in-depth interviews with cooperative management, field observations, and literature analysis of 15 related journal references. The results show that KMP Tipar is currently in the "Lelengkah Halu" phase, where operations are still manual and the digital system (Simkopdes) has not been optimally implemented due to limited digital literacy. The strategy for strengthening community trust is carried out through the development of real business units (LPG gas) and the application of profit-sharing transparency (50:50). This study concludes that the success of top-down cooperatives highly depends on strengthening social capital and synchronizing government instructions with local wisdom.
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