Lampung to Develop MSME Clusters via Village Cooperatives

The Lampung Provincial Government will develop micro, small, and medium enterprises (MSMEs) based on the region’s leading commodities through the Merah Putih Village Cooperative (KDKMP) programme to strengthen downstream industries and expand market access for local products.

Governor Rahmat Mirzani Djausal stated in Bandarlampung on Wednesday that the KDKMP will not only support downstream processing but also serve as a platform for developing MSMEs based on the region’s leading commodities. He explained that MSME players will be grouped into various clusters according to their commodities, allowing them to receive mentoring, brand strengthening, and marketing access within a single integrated ecosystem.

He noted that there are currently around 484,000 MSMEs in Lampung, including 134,000 accommodation, food, and beverage businesses and 112,000 processing industries. According to Rahmat, many MSMEs still produce similar goods under different brands, resulting in them competing in the same market without a strong distribution network.

He said the cooperatives will act as a driving force that integrates production, packaging, training, and marketing so that MSMEs no longer operate in isolation. Furthermore, strengthening the distribution network through the KDKMP is expected to shorten the supply chain for essential goods, bringing prices closer to the highest retail price (HET) while simultaneously increasing people’s purchasing power.

Rahmat added that the implementation of the KDKMP is estimated to generate additional money circulation in villages of around IDR 40 trillion to IDR 50 trillion and strengthen the role of cooperatives as drivers of the village economy.