Indonesian Political, Business & Finance News

900 Merah Putih Cooperative Units to Trial Social Assistance Distribution

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Economy

The Ministry of Social Affairs will conduct a trial for the distribution of social assistance (bansos) in various regions through the Merah Putih Cooperative. Minister of Social Affairs Saifullah Yusuf stated that 900 cooperative units across the country are ready to begin the distribution. “The distribution of social assistance will be trialled in stages through the Merah Putih Cooperative,” he said during a meeting at the Coordinating Ministry for Food office in Jakarta on Tuesday, 28 July 2026.

According to Saifullah, the social assistance to be distributed includes the Family Hope Programme (PKH) and non-cash food assistance (BPNT). The Merah Putih Cooperative is also designed to serve as a distributor of government-subsidised staple goods, providing recipients with access to affordable prices. “Beneficiaries will receive social assistance and can also purchase goods at competitive prices,” he explained.

Saifullah noted that the distribution mechanism will initially involve agents from state-owned banks (Himbara) operating within the cooperative units. He added that the cooperatives will eventually serve as hubs for products created by social empowerment programme participants. “Going forward, if regulations change, the distribution could be handled directly by the Merah Putih Cooperative without going through Himbara,” he said.

He further explained that the cooperative will work in synergy with Pos Indonesia, which will continue to deliver assistance to remote, frontier, and outermost regions, as well as to persons with disabilities and the elderly who require direct delivery. “In the end, it will be synergistic,” he concluded.

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