Finance Minister Confident Village Cooperatives Will Profit from Subsidised Goods Distribution

Finance Minister Purbaya Yudhi Sadewa believes the Merah Putih Village Cooperatives (KDKMP) can turn a profit by becoming the distributors of government-subsidised goods. The President has decided that the cooperatives will be the exclusive channel for all subsidised items. “From that alone, the Merah Putih Village Cooperatives should already be certain to profit. As long as there is no corruption, it should be safe,” he stated in Yogyakarta.

Purbaya also detailed the funding scheme for the cooperatives, which involves a Rp240 trillion loan from the Association of State-Owned Banks (Himbara). He explained that the Ministry of Finance will cover the principal and interest payments, amounting to roughly Rp40 trillion per year over a six-year tenor. He believes this amount is sufficient to support the cooperatives’ operations, adding that the state will also finance employee salaries and training for the first one and a half to two years before they become self-sustaining.