Coordinating Minister Zulhas: Red and White Village Cooperatives await Presidential Regulation for operations

Coordinating Minister for Food Zulkifli Hasan (Zulhas) has said that the operation of the Koperasi Desa Merah Putih (KDMP) is awaiting a Presidential Regulation (Perpres), with a target for 30,000 KDMP units to have been completed by the end of August.

“We estimate that 30,000 will be completed this August. So preparations are being made gradually while we wait for the Perpres,” said Zulhas in Jakarta on Friday, during a press conference on the Financial Note and the 2027 State Budget Draft (RAPBN).

Zulhas emphasised that the KDMP is government-owned infrastructure and will later be used to distribute subsidised assistance as well as to act as an offtaker.

According to him, the government has a number of subsidy programmes that can be channelled through the KDMP, such as fertiliser from the Ministry of Agriculture, 3-kilogramme gas cylinders from the Ministry of Energy and Mineral Resources, the Family Hope Programme (PKH) from the Ministry of Social Affairs, and several others.

“The KDMP will become a distribution point for subsidised goods and government assistance. For example, rice for deciles 1, 2, 3, and 4,” he said.

Zulhas added that the operation of the KDMP must first await the Presidential Regulation, which is expected to be completed in the near future.

“The Perpres is being processed. Therefore, we cannot proceed before the Perpres is completed,” he said.

Previously, President Prabowo Subianto set a target for 30,000 Koperasi Desa dan Kelurahan Merah Putih (KDKMP) to be operating optimally by the end of 2026.

He said the target was set to strengthen cooperatives as centres of the people’s economy while also strengthening the role of micro, small and medium enterprises (MSMEs) at the village level.

“Our target is 30,000 cooperatives operating optimally by the end of 2026. That is the target,” said the President during the 2026 Annual Session of the People’s Consultative Assembly (MPR RI) and the Joint Session of the House of Representatives and the Regional Representatives Council (DPR-DPD RI) at the MPR/DPR RI Building.

Currently, 10,000 KDKMP are already operating. Of that number, 3,300 cooperatives are operating optimally, while the remainder are still in the adjustment phase.

According to him, a cooperative operating optimally means that all supporting facilities are available, from electricity and water to a digital system for centrally monitoring stock.