Minister calls for unity to advance village cooperatives programme

“KDMP is a national strategic program that deserves support through concerted efforts,” he said during a dialogue with journalists at an iftar event held at his official residence in Jakarta on Monday night (March 16).

In a statement issued on Tuesday, Susanto outlined several reasons why the priority program should be advanced, emphasizing that it operates on a business model requiring each cooperative to allocate its net surplus strictly for the benefit of rural communities.

“One hundred percent of the net surplus is returned to villages, delivering benefits especially for poor residents,” he said, referring to those categorized as economically disadvantaged in the National Single Socioeconomic Data (DTSEN).

He added that at least 20 percent of village cooperatives’ profits would be contributed to regional original revenue, as mandated by Village Minister’s Regulation No. 10 of 2025, which stems from a 2025 presidential instruction on accelerating the program’s implementation.

The minister noted that the government envisions KDMPs as a means of empowering rural communities by absorbing locally produced commodities.

Furthermore, Susanto emphasized safeguards for the cooperatives by supporting a policy to restrict the issuance of permits for major modern retail companies seeking to open new outlets in villages. He expressed concern that such retailers tend to provide limited benefits to rural communities.

“Modern retailers may employ local workers, but their profits do not flow into the community. In contrast, village cooperatives channel all profits directly to the people,” he concluded.

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Translator: Tri/Citro, Tegar Nurfitra