Minister for Cooperatives: Transforming Social Welfare Recipients into Economic Empowerment Initiative

Pasuruan, East Java – Indonesia’s Minister for Cooperatives Ferry Juliantono has affirmed that transforming social welfare beneficiaries into members of Village Red-White Cooperatives (KDKMP) constitutes a strategic approach to advancing community economic empowerment.

“Social welfare programme recipients from the Ministry of Social Affairs who become cooperative members are expected to improve their living standards and wellbeing, enabling beneficiaries to achieve independence in the future,” said Ferry during a socialisation event at the KDKMP Gejugjati facility in Pasuruan Regency, East Java, on Tuesday.

During the joint activity with the Ministry of Social Affairs, Ferry underscored that through these cooperatives, welfare recipients are expected to gain additional income from annual profit distributions shared amongst members.

The programme also aims to enhance rural community welfare, including encouraging households previously categorised in the lowest two income deciles of the National Unified Social and Economic Data (DTSEN) to advance economically.

“The KDKMP facilities constructed can be directly utilised by village communities as economic activity hubs, including local product trading and distribution,” he said.

Accordingly, he expressed hope that with the establishment of KDKMP, village economies can develop independently through collective community strength.

“In East Java there are more than five million beneficiaries of programmes distributed through the Ministry of Social Affairs, with Pasuruan Regency alone having 229,000 beneficiaries who can join as KDKMP members and potentially strengthen the region’s economy,” he added.