Government to Pilot Social Aid Distribution Through Village Cooperatives

Jakarta, CNBC Indonesia — Social Affairs Minister Saifullah Yusuf has revealed a new scheme for the distribution of social assistance (bansos) being prepared by the government. In future, beneficiaries will have the opportunity to withdraw their social assistance funds through Red-and-White Village/Neighbourhood Cooperatives (KDKMP), making access to aid expectedly easier.

He said the government is currently simulating the scheme at 900 Red-and-White Village/Neighbourhood Cooperative points that are ready to operate. In the initial phase, the distribution mechanism remains unchanged, as it still uses banks from the Association of State-Owned Banks (Himbara) as the channel, whilst the Red-and-White Cooperatives will serve as collection points for the assistance.

“We are continuing to simulate this. So far, distribution has gone through two channels — either via Himbara or PT Pos, correct? Now, we will try to distribute through KDKMP. These are located in villages, so beneficiaries will find it far easier to access,” said Saifullah when met at the Office of the Coordinating Ministry for Food Affairs, Jakarta, on Tuesday (28/7/2026).

He explained that the government is preparing two schemes. Under the first, Himbara banks will open agent services at the Red-and-White Village/Neighbourhood Cooperatives, allowing beneficiaries to withdraw their assistance and spend it at the cooperative at the same time.

Meanwhile, the second scheme can only be implemented once regulations have been amended. Under that scheme, social assistance could potentially be channelled directly through the Red-and-White Village/Neighbourhood Cooperatives, without going through Himbara.

“Perhaps in future, once the regulations change, it could go directly to KDKMP — no longer through Himbara. But as it stands, the regulations specify Himbara or PT Pos,” he said.

Nevertheless, Saifullah stressed that the current distribution mechanism has not changed. The government will only conduct trials at the 900 Red-and-White Village/Neighbourhood Cooperative points that are ready to operate.

“No, not yet for now. So in this first phase, we will simulate it at those 900 points that are ready for operation — we will trial collection at KDKMP. Those serving will be agents from Himbara banks,” he said.

Saifullah said the trial is likely to take place after the third-quarter 2026 social assistance distribution is completed.

“The third-quarter distribution is already under way. Perhaps in the fourth quarter we will trial it. But first we will try distribution at these 900 points as a pilot,” he said.

According to him, the scheme is expected to make it easier for beneficiaries to obtain assistance whilst also purchasing goods at competitive prices, as the Red-and-White Cooperatives are located close to where people live.

“The non-cash assistance is meant to be spent at places near beneficiaries’ homes. Now that KDKMP exists, beneficiaries will also be able to get goods at competitive prices,” he said.

Saifullah also explained that the types of social assistance covered by the scheme are the Family Hope Programme (PKH) and food assistance, known as Non-Cash Food Assistance (BPNT).

“We have two types of social assistance. One is the Family Hope Programme, with its various components. The second is food assistance, or non-cash food assistance — Rp200,000 per month. It has been distributed every three months, so there are four disbursements a year,” said Saifullah.

Separately, he assured that PT Pos will continue to be involved in distributing social assistance to people in areas not reached by banking services, as well as vulnerable groups such as the elderly and persons with disabilities.

“PT Pos handles areas that banks cannot reach — for instance, in remote, underdeveloped and frontier (3T) regions, or where beneficiaries are elderly or persons with disabilities who need the money delivered to their homes. That goes through PT Pos. But that comes at a cost,” he explained.

Therefore, he said, going forward KDKMP, Himbara and PT Pos will complement one another in distributing social assistance.

He further stressed that the existence of the Red-and-White Village/Neighbourhood Cooperatives is not intended to replace the entire existing mechanism, but rather to provide additional, closer collection points for the public.