Jakarta, CNBC Indonesia - The Minister of Trade (Mendag) Budi Santoso\nhas affirmed that the presence of Village\/Urban Merah Putih Cooperatives\n(KDKMP) is not intended to be a competitor to modern retailers or\ntraditional shops. Instead, the Village\/Urban Merah Putih Cooperatives\nare opened as a space for collaboration so that the distribution of\ngoods to rural communities can be closer and more efficient.<\/p>\n
This was conveyed by the Minister of Trade after meeting with the\nMinister of Villages, Disadvantaged Regions Development, and\nTransmigration (Mendes) Yandri Susanto, to discuss the fate of modern\nretailers and traditional shops along with the development of\nVillage\/Urban Merah Putih Cooperatives. Budi appealed to both types of\nbusinesses to collaborate with the KDKMP.<\/p>\n
\u201c(We) met with Mendes yesterday,\u201d said Budi when met at his office,\nJakarta, Thursday (February 26, 2026).<\/p>\n
According to Budi, the Village\/Urban Merah Putih Cooperatives were\nformed from the beginning to empower the village economy. The existence\nof the KDKMP can actually be an opportunity for modern retailers and\ndistributors to channel their products to rural areas through a\npartnership scheme.<\/p>\n
\u201cSo, the Village Cooperatives are indeed aimed at empowering the\neconomy in the village. So the village cooperatives or existing\ncooperatives in the regions actually want to be closer in distribution\nto consumers in the village,\u201d he said.<\/p>\n
He said that this kind of collaborative pattern is not new. So far,\ntraditional shops in various regions have also received a lot of\nsupplies from modern retailers and large distributors.<\/p>\n
\u201cWell, this is actually a good opportunity to collaborate with\nminimarkets, with distributors to channel their products through village\ncooperatives. This practice of collaboration or partnership has also\nbeen and is often carried out, and it still applies to traditional\nshops,\u201d he explained.<\/p>\n
Furthermore, Budi explained that the Village\/Urban Merah Putih\nCooperatives have the advantage of having a wider scope of business\ncompared to modern retailers. In addition to functioning as a minimarket\nwith a variety of products, the KDKMP can also provide other needs for\nthe community in the village.<\/p>\n
\u201cFirst, it can function as a minimarket with a wider variety of\nproducts. For example, if we look at it, the KDKMP also sells a lot of\nagricultural tools. There is also fertilizer, there are medicines,\u201d he\nexplained.<\/p>\n
In addition, the KDKMP can also carry out additional functions as a\npharmacy, clinic, and even act as an exporter.<\/p>\n
\u201cThen, second, the KDKMP can also function as a pharmacy, as a\nclinic, and also one of them as an exporter,\u201d added Budi.<\/p>\n
Regarding concerns about the expansion of modern retailers, Budi\nemphasized that the licensing for the establishment of modern retailers\nis entirely in the hands of the local government, in accordance with\napplicable laws and regulations.<\/p>\n
\u201cThen, according to regulations, the licensing for modern retailers\nis delegated to the local government. So it is in accordance with the\nRT\/RW, or the Regional Spatial Plan,\u201d he said.<\/p>\n
He hopes that the local government can act wisely in developing\nvillage cooperatives and regulating the existence of modern retailers,\nso that the goal of empowering the village economy can still be\nachieved.<\/p>\n
\u201cSo I think the local government will be wise in developing the\ncooperatives, for the prosperity of the village. Because the village\ncooperatives belong to the village,\u201d said Budi.<\/p>\n
With this scheme, the government hopes that the KDMP can grow\nproportionally and become a strong village economic institution.<\/p>\n
\u201cSo that whatever is produced for the welfare of the village\ncommunity or the village government, so that economic empowerment can\nrun well. So we hope that the KDMP will become more proportional, so\nthat it becomes an institution that is indeed strong, and an institution\nthat has a function to empower the economy in the village,\u201d he\nconcluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/trade-minister-assures-that-merah-putih-cooperatives-will-not-undermine-modern-retailers-1772098750", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }