Government Prepares Social Assistance Distribution Scheme Through Village Cooperatives

Minister of Social Affairs Saifullah Yusuf, or Gus Ipul, has said the government is preparing for social assistance (bansos) to be distributed to beneficiaries through the Red-and-White Village/Urban Ward Cooperatives (KDMP).

Speaking after a limited meeting at the Presidential Palace complex in Jakarta on Wednesday, Gus Ipul explained that two types of social assistance are distributed through the Ministry of Social Affairs: the Non-Cash Food Assistance (BPNT) and the conditional cash transfer under the Family Hope Programme (PKH), which are usually disbursed via bank transfer.

“Going forward, we will certainly try to distribute it through the Kopdes (Village Cooperatives) as well. Because within the Kopdes there will be outlets, including those of the Himbara banks (state-owned bank association),” said Gus Ipul.

Gus Ipul said the Ministry of Social Affairs has coordinated with the Ministry of Cooperatives and various relevant parties regarding the distribution of social assistance through various KDMP locations.

The distribution process through KDMP itself will be trialled at a number of cooperative locations.

“It will now be tested in several places. Hopefully, the target, as mentioned earlier, is for the trial to take place around August,” he said.

He said that in his instructions on Wednesday, President Prabowo Subianto called for strengthened implementation of the KDMP.

The distribution of social assistance through KDMP is in line with Presidential Instruction Number 9 of 2025 on the Acceleration of the Establishment of Red-and-White Village/Urban Ward Cooperatives, which encourages social assistance beneficiaries to become KDMP members, as it is one of the government’s priority programmes.

Under the instruction, the Ministry of Social Affairs has also been asked to facilitate the marketing and promotion of products made by beneficiaries of social empowerment programmes through KDMP.

Previously, data from the Ministry of Cooperatives showed that 15,845 KDMPs had been completed as of mid-July 2026, with 19,539 cooperatives still under construction.

The government itself is targeting the physical construction of 35,000 KDMPs to be completed by August 2026.