Minister: 80 Percent of 'Red and White Cooperative' Profits to Return to Villagers

Minister of Villages and Development of Disadvantaged Regions (Mendes PDT) Yandri Susanto has assured that the majority of economic benefits from the Red and White Village/Sub-district Cooperatives (KDKMP) will be enjoyed by rural communities. According to him, up to 80 percent of the cooperative’s profits will be returned to residents, while the remaining 20 percent will become Village Original Revenue (PAD). Yandri stated that the scheme is prepared so that KDKMP truly becomes a driver of the village economy while improving community welfare. This programme is also part of the 12 Actions to Build Villages, Build Indonesia as an implementation of President Prabowo Subianto’s eighth Asta Cita, which is building from the village for economic equality and poverty alleviation. “Because we at the Ministry of Villages certainly want this programme to be truly successful because it uses village funds,” Yandri said while attending the KDKMP National Seminar at Sasana Kriya, Taman Mini Indonesia Indah (TMII), Jakarta, on Thursday (16/7/2026). He emphasised that the formation of KDKMP does not mean reducing the allocation of village funds. According to Yandri, the government is merely changing the governance of village fund utilisation to be more productive through cooperatives. “It has never been cut by the Minister of Finance, but the governance has been changed,” he said. Yandri stressed that the amount of village funds received by village governments remains the same. Changes are only made to the management mechanism so that the funds can create sustainable economic activity. According to him, KDKMP is projected to become a centre for village economic activity as well as a means for the government to channel various programmes to the community. Meanwhile, President Director of PT Agrinas Pangan Nusantara, Joao Angelo de Sousa Mota, said KDKMP was established so that rural communities gain equal access to various products at more affordable prices. According to Joao, the cooperative will shorten the distribution chain so that goods that have been easily obtained in urban areas can also be accessed by villagers at fairer prices. The presence of KDKMP is also expected to revive village stalls through a more efficient distribution system. He added that KDKMP will be managed professionally and transparently. With its distribution network, the cooperative is expected to help maintain the price stability of various community necessities. The national seminar was attended by Coordinating Minister for Food Zulkifli Hasan, Minister of Cooperatives Ferry Juliantono, Deputy Minister of Villages PDT Ahmad Riza Patria, Deputy Commander of the Indonesian National Armed Forces General Tandyo Budi Revita, chairpersons of village associations, regional heads, and university representatives. On the same occasion, a Village Featured Products Exhibition was also held in the TMII area, showcasing various potential products from villages across Indonesia through the utilisation of regional pavilions.