Indonesian Political, Business & Finance News

Cooperatives Minister Dialogues with 10 Village Associations to Resolve KDKMP Issues

| Source: DETIK Translated from Indonesian | Economy
Cooperatives Minister Dialogues with 10 Village Associations to Resolve KDKMP Issues
Image: DETIK

Cooperatives Minister Ferry Juliantono has stated that the central government is continuously seeking the best solutions and middle ground for every problem through various dialogue and discussion initiatives with stakeholders. Together with 10 Village Associations from across Indonesia, Ferry inventoried various issues in villages and sub-districts to find the best solutions.

"Through this national seminar, we are deliberating so that preparations for the operationalisation of the Koperasi Desa/Kelurahan Merah Putih (KDKMP) can run well. This event is held so that we, the management, supervisors, and all parties, can sit together to find the best solutions," said Minister Ferry Juliantono in a written statement on Thursday. He made the remarks during the KDKMP National Seminar themed ‘KDKMP for Realising People’s Economic Sovereignty’ held at Sasana Kriya, Taman Mini Indonesia Indah (TMII) complex, Jakarta.

The event was attended by Coordinating Minister for Food Zulkifli Hasan, Minister of Villages and Development of Disadvantaged Regions Yandri Susanto, Deputy Commander of the Indonesian National Armed Forces Tandyo Budi Revita, and President Director of PT Agrinas Pangan Nusantara Joao Angelo De Sousa Mota. Also present were the Vice Rector for Research and Innovation of the University of Indonesia Hamdi Moeloek, deputy ministers from the Merah Putih Cabinet, and representatives of the All-Indonesia Village Association.

Regarding specific issues, Ferry emphasised that the Ministry of Cooperatives, together with relevant ministries and agencies, will soon hold a special forum involving KDKMP management and supervisors. This is needed so that the solutions formulated are precisely targeted based on the identification of problems in each region. He added that a new Cooperatives Law will be enacted this year, providing a legal umbrella for cooperatives in running their businesses, including KDKMP. Fundamental problems often faced by cooperatives are expected to be resolved through this new regulation, including the establishment of a deposit insurance institution to protect members’ funds.

During the forum, Ferry also mentioned the results of a limited meeting with President Prabowo Subianto the previous night. According to the President’s directive, KDKMP will be designated as the official institution for distributing subsidised goods and social assistance. Items such as 3-kilogramme LPG canisters, fertiliser, cooking oil, and rice will be channelled directly through cooperatives. Additionally, social assistance programmes like direct cash transfers and non-cash food aid will be distributed via KDKMP. Financing schemes from banks, including the channelling of KUR and the BRI Mekar programme, will strengthen the cooperative’s function as a financial service outlet in villages.

Coordinating Minister for Food Zulkifli Hasan added that KDKMP will become the main infrastructure for distributing subsidised food, as decided in the limited meeting. He stated that this government support is expected to boost the welfare and economic independence of village communities. Minister of Villages and Development of Disadvantaged Regions Yandri Susanto stressed the role of villages as the main locus of the KDKMP programme, with efforts to optimise village potential. The Ministry of Villages will consistently provide assistance to realise economic empowerment in villages. He noted that 20 per cent of the KDKMP’s business proceeds will become locally generated revenue, while 80 per cent will be recirculated within the village.

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