Coordinating Minister Zulhas: Village Cooperatives Are Not Supermarkets

Coordinating Minister for Food Zulkifli Hasan has stated that many people misunderstand the role of the ‘Red and White Village Cooperatives’ (Kopdes). According to Zulhas, they are mistaken in thinking the cooperatives will function like supermarkets, whereas they are actually government infrastructure and offtakers.

Speaking at the Presidential Palace in Jakarta on Wednesday, 15 July 2026, Zulhas explained the dual role of the cooperatives. ‘The Kopdes is not just a shop selling various necessities. It is also an offtaker of agricultural products,’ he said. As an offtaker, the cooperative can purchase commodities such as unhusked rice and maize when market prices fall below the government’s standard.

President Prabowo Subianto had previously announced that the distribution of all subsidised goods would be channelled through the Kopdes. This move is set to alter the national distribution flow for subsidised items, which previously involved official distributors and retailers.

‘All subsidised goods must be distributed to the people through the Kopdes,’ President Prabowo stated during a speech at the National Cooperative Day commemoration in Jakarta on Sunday, 12 July 2026.

Public policy expert Achmad Nur Hidayat from the Universitas Pembangunan Nasional Veteran Jakarta commented that the idea appears promising in theory, as it could shorten the supply chain, reduce prices, and weaken the role of middlemen. However, he cautioned that the policy’s success depends on more than just good intentions. ‘When the state moves the subsidy distribution channel to a single dominant conduit, the main question is not just who distributes it, but whether that channel is ready, fair, transparent, and properly supervised,’ he said in an official statement on Monday, 13 July 2026.