Indonesian Political, Business & Finance News

Minister: KDKMP not just a distributor of subsidised goods

| Source: ANTARA_ID Translated from Indonesian | Economy
Minister: KDKMP not just a distributor of subsidised goods
Image: ANTARA_ID

Jakarta (ANTARA) - Minister of Cooperatives Ferry Juliantono has emphasised that the Koperasi Desa/Kelurahan Merah Putih (KDKMP) programme is being developed not only as a distributor of subsidised goods but also as a driver of the local economy. Speaking at the launch of a book and a national symposium in Jakarta on Tuesday, Ferry stated that KDKMP is directed to develop various village economic potentials, including tourism, crafts, and the creative economy. He asserted that KDKMP would not merely be a channel for aid but a centre for driving the people’s economy.

Ferry acknowledged that the programme’s implementation still faces a number of challenges. He noted that while public enthusiasm for KDKMP is high, some residents remain hesitant as they are not yet accustomed to the modern cooperative concept. “This is where, in fact, every transformation, every change, will have its consequences,” he said.

The minister reiterated that the development of KDKMP is part of the government’s efforts to strengthen the people’s economy, in line with Article 33 of the 1945 Constitution. He added that the programme also reflects the ideas of economist Soemitro Djojohadikusumo regarding economic development based on togetherness and mutual cooperation. At the same event, a senior expert from the Presidential Staff Office, Guruh Muamar Khadafi, stated that economic development must not only pursue growth but also ensure equitable distribution of benefits to all levels of society, including through the KDKMP programme.

The government has designated KDKMP as one of the distribution infrastructures for various government programmes at the village level. Beyond distributing subsidised goods such as 3 kg LPG, subsidised fertiliser, Minyakita cooking oil, and rice, KDKMP is also being prepared as a channel for social assistance, including the Family Hope Programme and Non-Cash Food Assistance. As of 4 August 2026, approximately 1,000 KDKMP units are already operating in Central Java and East Java. Data from the KDKMP Information System shows that a total of 83,382 units have been formed, though not all yet possess operational facilities such as buildings, warehouses, outlets, and other supporting infrastructure. A total of 19,527 cooperatives have completed the construction of these supporting facilities.

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