Government to Channel Social Assistance Through Village Cooperatives
Social Affairs Minister Saifullah Yusuf, better known as Gus Ipul, has said the government is preparing a scheme to distribute social assistance (bansos) through the Merah Putih Village/Urban Neighbourhood Cooperatives (KDMP).
There are currently two forms of social assistance distributed through the Ministry of Social Affairs: the Non-Cash Food Assistance (BPNT) and conditional cash transfers under the Family Hope Programme (PKH), which are usually disbursed via bank transfer.
“Going forward, we will certainly try to distribute it through the village cooperatives as well, because the cooperatives will have outlets, including outlets from the Himbara banks (state-owned banks association),” said Gus Ipul after a limited meeting with President Prabowo Subianto at the Presidential Palace in Jakarta on Wednesday (15 July).
Gus Ipul said the Ministry of Social Affairs had coordinated with the Ministry of Cooperatives and various related parties regarding the distribution of social assistance through KDMP locations.
“Hopefully, the target is that it will be trialled around August,” he said.
Saifullah added that during the limited meeting, President Prabowo Subianto instructed that the implementation of the KDMP programme continue to be strengthened.
The plan to distribute social assistance through KDMP is part of the implementation of Presidential Instruction (Inpres) Number 9 of 2025 on the Acceleration of the Establishment of Merah Putih Village/Urban Neighbourhood Cooperatives. Under the regulation, social assistance beneficiaries are encouraged to become KDMP members as one of the government’s priority programmes.
In addition, the Ministry of Social Affairs has been tasked with facilitating the marketing and promotion of products made by beneficiaries of social empowerment programmes through the KDMP network.
According to data from the Ministry of Cooperatives, as of mid-July 2026, 15,845 KDMP have been completed. Meanwhile, a further 19,539 cooperatives are still under construction.
The government aims to complete the physical construction of 35,000 KDMP by August 2026.