Indonesia completes 4,741 village cooperatives, awaits rollout
Deputy Minister Farida Farichah said that although construction has reached completion for those units, business operations have yet to begin due to pending supporting equipment.
“The cooperatives that have reached 100 percent physical construction will gradually receive equipment and transportation, a process already underway,” she said at a press conference in Jakarta.
On human resources, Farichah said the government is preparing recruitment schemes for cooperative management, with discussions ongoing with state-owned food firm PT Agrinas Pangan Nusantara, which is responsible for building KDMP facilities.
She said each cooperative is expected to employ between 15 and 18 workers for operational roles, including drivers, security personnel and warehouse staff, with priority given to local residents.
The government also plans to integrate social assistance beneficiaries into the program’s workforce as part of broader efforts to expand employment opportunities at the village level.
To support this, recruitment will be aligned with data from the Social Affairs Ministry to identify eligible candidates, particularly those classified as poor or extremely poor.
Indonesia aims to complete essential facilities for around 30,000 village cooperatives by June 2026, including grocery outlets, offices, warehouses, pharmacies and clinics.
Once construction is finalized, the government plans to assign Agrinas to assist the cooperatives during their first two years of operations to ensure stability and proper management.
Agrinas President Director Joao Angelo de Sousa Mota said in late March that cooperative operators would also be involved as supervisors during the early stages.
He added that up to 97 percent of profits generated by the cooperatives would be returned to rural communities, reinforcing the program’s goal of strengthening local economies and improving livelihoods.
The KDMP initiative is a key part of the government’s strategy to promote inclusive economic growth and reduce inequality by empowering village-based enterprises across Indonesia.
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Translator: Shofi Ayudiana, Tegar Nurfitra