Minister: KDKMP to Become State Infrastructure for Strengthening Supply Chains

Cooperatives Minister Ferry Juliantono has stated that the government is preparing the Koperasi Desa/Kelurahan Merah Putih (KDKMP) as state infrastructure to strengthen the supply chain for staple goods, subsidised goods, and government assistance to the public. “It will become state infrastructure to replace the mechanisms and systems of practice that have so far been carried out by non-state actors,” Ferry said at the Great Institute Seminar in Jakarta on Tuesday. According to Ferry, through this role, KDKMP is expected to become a distribution node for various goods needed by the public, which have so far faced persistent problems with lengthy supply chains. He said the government is currently finalising a Presidential Regulation that will serve as the operational basis for KDKMP. The regulation is being prepared alongside the training and placement of cooperative managers so that thousands of cooperatives that already have physical buildings can begin operating immediately. The draft regulation also includes the assignment of KDKMP as distributors of subsidised goods, such as 3-kilogram LPG, subsidised fertiliser, and cooking oil, as well as strengthening synergy with state-owned enterprises, regional-owned enterprises, and village-owned enterprises. Ferry said President Prabowo Subianto has also decided that various subsidised goods and government aid will be distributed through KDKMP. “All subsidised goods, 3-kilogram LPG gas, subsidised fertiliser, cooking oil, rice, will all be distributed directly through the Koperasi Desa/Kelurahan Merah Putih, including assistance from the central government,” he stated.