Minister of Trade: Merah Putih Village/Urban Cooperatives to Collaborate with Modern Retailers
Minister of Trade Budi Santoso emphasised that the development of Merah Putih Village/Urban Cooperatives is not just about competing with modern retailers, but about creating opportunities for distribution collaboration to strengthen the village economy.
According to him, the main goal of Merah Putih Village/Urban Cooperatives is to bring goods closer to consumers in rural areas while empowering the local economy.
“These village cooperatives are indeed for economic empowerment in the villages. This is a good opportunity to collaborate with minimarkets and distributors so that products can be distributed through village cooperatives,” said Budi in Jakarta, Thursday (26/2).
He explained that this partnership is not something new. For a long time, traditional shops in various regions have been working together with modern retailers and large distributors. A similar scheme can be applied to the Merah Putih Cooperatives.
Budi believes that Merah Putih Village/Urban Cooperatives have several advantages. In addition to functioning like a minimarket with a wider variety of products, village cooperatives can also provide agricultural tools, fertilizers, and even medicines. In its development, Merah Putih Village/Urban Cooperatives can potentially function as pharmacies, clinics, and even become aggregators for village product exports.
“The reach of Merah Putih Village/Urban Cooperatives is wider. It is not only retail, but can also support the productive needs of the village community,” he said.
Regarding the licensing of modern retailers, Budi emphasised that the authority lies with the local government in accordance with the regional spatial plan (RTRW). Therefore, he believes that the local government will be wise in regulating the balance between modern retail and village cooperatives.
“These village cooperatives belong to the village. Whatever is produced will return to the prosperity of the village community. So economic empowerment can run well,” he said.
He hopes that Merah Putih Village/Urban Cooperatives can develop proportionally as a strong village economic institution, while also becoming a strategic partner in the national distribution system without creating a dichotomy with modern retail players. (Z-10)