Govt to Centralise Social Aid Distribution Through Village Cooperatives
The government, through the Ministry of Villages and Development of Disadvantaged Regions (Kemendes PDT), is introducing a new scheme to centralise the distribution of social assistance (Bansos) through Village Cooperatives (Kopdes). Coordinating Minister for Food Zulkifli Hasan stated that the plan aims to make Kopdes a powerful economic infrastructure at the village level. “This September, I am drafting a Presidential Regulation (Perpres), so it will be very strong. Later, Kopdes will be powerful. Government aid will be channelled through Kopdes; for example, all social assistance from the Ministry of Social Affairs will go to Kopdes,” Zulhas said in a written statement on Tuesday.
Under the new system, residents will no longer need to travel far to receive basic necessities. Cooperative administrators will take over the responsibility of distributing aid directly to residents’ homes in every village corner. The centralised distribution scheme also covers fertiliser, LPG cylinders, and postal deliveries, which will all be routed through the Kopdes before final delivery. Furthermore, the cooperatives will serve as a single gateway for capital access, including the distribution of credit and agricultural machinery assistance.
Zulhas confirmed that the breakthrough has received direct approval from President Prabowo Subianto during a limited cabinet meeting. He also clarified that the Kopdes will function as an off-taker for local farmers’ harvests, buying commodities that are difficult to sell on the market, similar to the role of the national logistics agency Bulog but at the village level. “People imagine a cooperative is a supermarket; it is not. Its core function is as government infrastructure and an off-taker,” he explained.
Village Minister Yandri Susanto emphasised that the programme is part of the President’s Asta Cita mission to build the nation from the village level. Speaking at a national seminar in Makassar, he noted that the initiative aims to make village cooperatives the ‘small candles’ that will light up the entire Indonesian archipelago, paving the way for the Golden Indonesia 2045 vision.