Government to Channel Social Assistance Through Village Cooperatives

The Indonesian government is preparing a new scheme to distribute social assistance through the Village Cooperatives (Koperasi Desa/Kelurahan Merah Putih/KDMP). Social Affairs Minister Saifullah Yusuf, known as Gus Ipul, stated that the ministry is coordinating the plan to channel aid, which includes Non-Cash Food Assistance (BPNT) and conditional cash transfers under the Family Hope Programme (PKH), via these cooperatives. “In the future, we will try to distribute it through the Village Cooperatives, as they will have outlets, including those from state-owned banks (Himbara),” Gus Ipul said after a limited meeting with President Prabowo Subianto at the Presidential Palace in Jakarta on Wednesday. He added that a trial is expected to begin around August. The plan is part of the implementation of Presidential Instruction Number 9 of 2025, which accelerates the establishment of the cooperatives and encourages social assistance beneficiaries to become members. The Ministry of Social Affairs is also tasked with facilitating the marketing and promotion of products made by beneficiaries through the cooperative network. According to data from the Ministry of Cooperatives, 15,845 village cooperatives have been completed as of mid-July, with thousands more still under construction.