{
    "success": true,
    "data": {
        "id": 1995181,
        "msgid": "economist-consignment-scheme-insufficient-to-meet-kdkmp-working-capital-needs-1790078438",
        "date": "2026-09-22 17:57:26",
        "title": "Economist: Consignment scheme insufficient to meet KDKMP working capital needs",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Economy",
        "summary": "An economist from CORE Indonesia warns that while consignment schemes can reduce inventory costs for Red White Village\/Sub-district Cooperatives (KDKMP), they cannot fully replace the need for working capital. The expert highlights that certain commodities still require upfront cash payments and that slow inventory turnover could still lead to cash flow issues.",
        "content": "<p>Jakarta (ANTARA) - Yusuf Rendy Manilet, an economist at the Centre of\nReform on Economics (CORE) Indonesia, believes that the consignment\n(consignment\/sale-on-approval) scheme can help reduce the capital\nrequirements for Red White Village\/Sub-district Cooperatives (KDKMP) to\nprovide stock, but it cannot entirely replace the cooperatives\u2019 working\ncapital needs.<\/p>\n<p>According to him, through consignment, cooperatives do not need to\npay suppliers immediately for all goods displayed in outlets. This\nscheme can be applied particularly to local products and micro, small,\nand medium enterprises (MSMEs).<\/p>\n<p>\u201cThe consignment scheme can indeed reduce cash requirements for\ncertain inventories, especially local products and MSMEs. However, this\nscheme does not resolve all working capital needs,\u201d he said when\ncontacted in Jakarta on Tuesday.<\/p>\n<p>Yusuf explained that certain commodities still require cash payments\nto farmers or suppliers. Cooperatives must also provide funds for\ndistribution needs and other operational costs.<\/p>\n<p>Furthermore, he noted that the effectiveness of consignment depends\non the speed of inventory turnover. If consigned goods are not sold\nquickly, cooperatives will still face cash flow problems despite not\nbearing the full cost of the inventory.<\/p>\n<p>\u201cIf sales are low, the outlet may appear full, but the cooperative\u2019s\ncash flow remains weak,\u201d he added.<\/p>\n<p>Previously, Deputy Minister of Cooperatives Farida Farichah stated\nthat the government would optimise equity participation, including from\nthe Revolving Fund Management Agency (LPDB), and consignment schemes as\nsources of working capital for KDKMP once the cooperatives begin\noperations.<\/p>\n<p>This statement was made to address questions regarding the sources of\nworking capital for KDKMP after the Rp3 billion loan ceiling is utilised\nto finance the construction of warehouses and outlets, as well as goods\nprocurement.<\/p>\n<p>However, Member of Commission VI of the Indonesian House of\nRepresentatives (DPR RI), Darmadi Durianto, assessed that the\nconsignment scheme would be difficult to implement for the procurement\nof fast-moving consumer goods (FMCG).<\/p>\n<p>\u201cThose goods cannot be consigned. No one would offer consignment to\nKDKMP for products from companies like Indofood or Unilever,\u201d said\nDarmadi.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/economist-consignment-scheme-insufficient-to-meet-kdkmp-working-capital-needs-1790078438",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}