KDKMP Cooperatives to Become Centres for Subsidy Distribution and Village Economy

Cimahi (ANTARA) - Cooperatives Minister Ferry Juliantono has said that the Red and White Village/Neighbourhood Cooperatives (KDKMP) scheme has been prepared to serve as the centre for managing and distributing government-subsidised commodities, as well as driving potential economic activity at the village level.

During a visit to Cimahi, West Java, on Friday, Ferry Juliantono said KDKMP will play a role in the distribution of a number of subsidised commodities, such as 3 kg LPG, subsidised fertiliser, rice and cooking oil, to the public.

“It should be noted that the President, during National Cooperatives Day, made the decision that all subsidised goods — 3 kg LPG, subsidised fertiliser, rice, cooking oil — all will be distributed through KDKMP,” he said.

He said the policy is a strategic step by the government to strengthen the role of cooperatives in the national economy, whilst at the same time improving the governance of distribution for various public needs so it becomes more effective.

“All central government programmes, including direct cash assistance, social aid, and non-cash food assistance, will also be channelled through the Red and White Village/Neighbourhood Cooperatives,” he said.

Beyond the distribution of government programmes, he said KDKMP is also being directed to become the centre of village economic activity, through the sale of basic necessities, the development of local MSME products, micro-financial services, warehousing, and logistics distribution.

He explained that KDKMP could in future become a storage place for a variety of village production outputs, ranging from agriculture, plantations and fisheries to handicrafts, whilst also providing the means of production for local communities.