Indonesian Political, Business & Finance News

Food Coordinating Minister Plans to Cut Out Middlemen by Making Village Cooperatives Off-Takers for Fishermen

| Source: DETIK Translated from Indonesian | Economy
Food Coordinating Minister Plans to Cut Out Middlemen by Making Village Cooperatives Off-Takers for Fishermen
Image: DETIK

Coordinating Minister for Food Zulkifli Hasan has revealed the grand concept behind the establishment of the Red and White Village Cooperatives (Kopdes Merah Putih). Zulkifli Hasan stated that the government is preparing the Village Cooperatives to act as off-takers, providing market certainty to prevent farmers and fishermen from suffering losses. He initially highlighted the plight of fishermen in East Nusa Tenggara (NTT), who were forced to sell their catch to middlemen at low prices, resulting in losses. He assessed that the presence of middlemen in the community prevents farmers and fishermen from developing. Consequently, the government is building fishing villages where it can assist fishermen in distributing their catch to communities across various regions. He explained the system: the Kopdes Merah Putih will purchase fish from the fishermen and then supply it to the public. “The concept of the Kopdes is that the President wants the economy to grow in the villages; the essence is empowerment. Just like in the past, modern retail was only allowed in the capital cities, not in village shops. But what the President wants to accelerate now is the building of these cooperatives in 80,000 villages. His idea is truly grand and fundamental,” Zulkifli Hasan said during a national coordination meeting for the marine and fisheries sector at the Mina Bahari III Building, Central Jakarta, on Thursday. He mentioned that to build 80,000 Red and White Kopdes, President Prabowo Subianto issued a presidential instruction assigning the National Food Agency (Agrinas Pangan) to cooperate with the Indonesian National Armed Forces (TNI). Zulkifli Hasan guaranteed that the role of the Kopdes Merah Putih is better than the free tender system, revealing that the cooperative will be the off-taker for village interests. He clarified that the Kopdes is not a supermarket but an off-taker serving the village’s needs. Beyond being an off-taker, the Kopdes Merah Putih will also distribute government aid and manage it to prevent misuse by irresponsible individuals. “Later, the Kopdes will distribute the Family Hope Programme (PKH) aid, including the 10-kilogramme rice assistance. Previously handled by the village, it will now be managed by the Red and White Village Cooperatives. Other aid like farming tools and tractors will also be managed by the Kopdes so that everyone can use them,” he said. He added that the cooperative will serve as government infrastructure to stabilise prices, preventing market operations from being compromised by adulteration. He concluded that this off-taker role is a fundamental policy of President Prabowo.

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