Government prepares 18 million social aid beneficiaries for empowerment through Merah Putih Village/Subdistrict Cooperatives

Jakarta (ANTARA) - The government, through the Ministry of Social Affairs, is preparing as many as 18 million beneficiary families (KPM) of social assistance to be empowered as workers in the Merah Putih Village/Subdistrict Cooperatives programme.

“All social assistance beneficiaries are encouraged to become members of the Merah Putih Village/Subdistrict Cooperatives as part of efforts to empower and enhance economic independence,” said Social Minister Saifullah Yusuf after a meeting with the Cooperatives Minister at the Ministry of Cooperatives office in Jakarta on Monday.

Saifullah explained that, as per the meeting’s outcomes, productive-age KPM are being prepared to work in the Merah Putih Village/Subdistrict Cooperatives, for example, as drivers, managers, and so on.

Meanwhile, KPM of less productive age or the elderly will be optimised more as cooperative participants.

“We will certainly provide adequate legal umbrella support, including mechanisms for primary savings and member contributions. This is what is being prepared in the coming times, including joint mapping with the Ministry of Cooperatives and SMEs on what specifications are needed,” he said.

Although not yet finalised, he revealed that based on preliminary studies, the primary savings amount for the cooperative is Rp50,000-100,000 and can be paid in instalments, while mandatory membership fees are estimated at Rp5,000-Rp10,000 per month.

“It also includes preparing regulations so that part of the social assistance funds can be utilised as initial membership contributions to the cooperative. This is why, to ease the burden on KPM who are in the lowest economic conditions, deciles 1-4 of the poor,” he said.

He emphasised that this programme is part of the KPM graduation strategy to advance from social assistance recipients to economically independent citizens. This aligns with Presidential Instruction Number 8/2024 and Presidential Instruction Number 9/2024.