Indonesian Political, Business & Finance News

Government clarifies status of Kopdes managers after two-year contract

| Source: ANTARA_ID Translated from Indonesian | Social Policy
Government clarifies status of Kopdes managers after two-year contract
Image: ANTARA_ID

Jakarta (ANTARA) - The government has clarified the status of managers of the Merah Putih Village/Urban Village Cooperatives (Kopdes) after the end of their two-year employment contract period. Coordinating Minister for Food Affairs and Head of the Task Force for Accelerating the Formation of Kopdes Merah Putih, Zulkifli Hasan, stated that managers who pass the selection will be contracted under a fixed-term employment agreement (PKWT) under the auspices of the state-owned enterprise PT Agrinas Pangan Nusantara for two years. “For the time being (PKWT) for two years. After two years, they will become cooperative staff,” he said during a press conference at his office in Jakarta on Monday. With this scheme, Zulkifli noted that the managers in the initial stage will have the status of Agrinas Pangan employees. The government considers this model necessary to support the establishment and initial operations of Kopdes Merah Putih in various regions. Regarding salaries, Zulkifli stated that payments during the contract period will be made by Agrinas Pangan because the managers are still under that state-owned enterprise. “Later, because they are Agrinas employees, Agrinas Pangan will certainly pay,” he said. However, Zulkifli stated that he could not yet disclose details of the funding sources or the amount of salaries that the Kopdes Merah Putih managers will receive. The government is opening 30,000 positions for Kopdes Merah Putih managers. Until the registration closure on 24 April 2026, the number of applicants recorded reached 639,732 people. Zulkifli stated that Kopdes Merah Putih is formed as a centre for new economic growth at the village and urban village level, in line with the President’s directive to strengthen the people’s economy from the grassroots. Through these cooperatives, the government aims to shorten the supply chain, which has so far been deemed too long, while strengthening the position of farmers and village business actors. Kopdes Merah Putih is also said to play a role as an offtaker or absorber of community production output so that commodity prices remain stable. In addition to economic functions, the government states that Kopdes Merah Putih will also serve as an extension of the government’s hand in distributing social assistance and subsidised goods to ensure they reach the right targets.

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