<![CDATA[The Koperasi Desa Kelurahan Merah Putih (KDMP) Program is a national policy initiative aimed at strengthening villages through the establishment, development, and revitalization of cooperatives at the village and urban village (Kelurahan) levels. Through Presidential Instruction No. 9 of 2025, the establishment of KDKMP has been positioned as a cross ministerial and cross agency agenda involving both central and local governments, with a target of establishing 80.000 cooperatives, supported by financing from national, regional, and village budgets. These developments raise questions about how national policy intervention affects the space for village autonomy that has previously been established through the framework of decentralization and the Village Law. The analysis indicates the emergence of new patterns of relations among the central government, local governments, village governments, and local economic institutions through policy standardization, hierarchical coordination, and financing mechanisms that connect state fiscal resources with the development of village economic institutions. PKM No. 15 of 2026 further demonstrates the linkage between KDKMP financing and the General Allocation Fund (DAU)/Revenue Sharing Fund (DBH) as well as the Village Fund (Dana Desa). These conditions suggest that village autonomy is neither simply diminished nor expanded; rather, it is reconfigured through changes in authority, fiscal arrangements, and institutional relations. This study contributes to the literature on decentralization by demonstrating how national economy policy interventions can reshape the space of village autonomy through institutional and fiscal mechanisms.]]>
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