Limited Cabinet Meeting Decides KDKMP as Offtaker for Farmers' Harvests and Distributor of Social Assistance
Jakarta (ANTARA) - A limited meeting led by President Prabowo Subianto at the Presidential Palace in Jakarta on Wednesday decided that the Red and White Village/Neighbourhood Cooperatives (KDKMP) will act as distributors of social assistance (bansos) and offtakers of farmers’ harvests, particularly rice/paddy and maize.
“The Red and White Village Cooperatives are government infrastructure. One, what infrastructure? For delivering goods such as assistance, social aid, and subsidised goods — everything will go through the Red and White Village Cooperatives. That was decided today,” said Coordinating Minister for Food Zulkifli Hasan, popularly known as Zulhas, at a press conference following the meeting at the Presidential Palace on Wednesday (15/7) evening.
“Secondly, (KDKMP) will act as an offtaker. If prices of goods such as paddy and maize fall below the prices determined by the government, the cooperative can serve as an offtaker by buying agricultural products at the government-set prices,” Zulhas continued.
As a result, he said, KDKMP will not replace or compete with village-owned enterprises (BUMDes), as the two will complement and strengthen each other’s functions.
“Farmers will work according to each village’s potential, because there are 75,266 villages with various existing potentials. Each village cooperative will cooperate with BUMDes to ensure all village products match their potential and bring benefits to villagers,” said Minister of Villages, Development of Disadvantaged Regions Yandri Susanto.
Yandri added that going forward, all village potential will also be maximised through KDKMP.
“Once it is running, we will certainly maximise its function through each village’s potential. Moreover, it is funded by the Village Fund, and 20 per cent of the cooperative’s profits will become the village’s own-source revenue,” he said.
Consequently, Yandri said, village governments and all their elements have a stake in the success of these cooperatives because of the positive effects for the village, including the remaining 80 per cent that will flow back to the village’s people.
The limited meeting discussed KDKMP and the Free Nutritious Meal (MBG) programme at the Presidential Palace from Wednesday afternoon into the evening, attended by several ministers, including Coordinating Minister Zulkifli Hasan, Minister of Villages Yandri Susanto, Minister of Cooperatives Ferry Joko Juliantono, Minister of Finance Purbaya Yudhi Sadewa, Minister of Marine Affairs and Fisheries Sakti Wahyu Trenggono, Minister of State Secretary Prasetyo Hadi, and Cabinet Secretary Teddy Indra Wijaya.
Also present were Minister of Investment and Downstreaming/CEO of Danantara Rosan Perkasa Roeslani, President Director of Agrinas Pangan Nusantara Joao Angelo De Sousa Mota, Minister of Energy and Mineral Resources Bahlil Lahadalia, and Minister of Home Affairs Tito Karnavian.
In addition, Commander of the Indonesian National Armed Forces General Agus Subiyanto, Deputy Commander General Tandyo Budi Revita, Minister of Micro, Small and Medium Enterprises Maman Abdurrahman, Minister of Trade Budi Santoso, Deputy Minister of Communication and Digital Angga Raka Prabowo, President Director of Pertamina Simon Aloysius Mantiri, Deputy Head of the National Nutrition Agency Agustina Arumsari, and Minister of Social Affairs Saifullah Yusuf attended.