Minister: Operational preparations for Red and White Village Cooperatives include business model

The operational activities of the Merah Putih Village/Sub-district Cooperatives (KDKMP) are currently undergoing the finalisation of their business models and feasibility studies.

The Minister of Cooperatives, Ferry Juliantono, stated that his ministry is continuously preparing the operational stages of the KDKMP, with a primary focus on discussing business models.

“We are currently maturing the business model and feasibility study for the operational activities of the Merah Putih Village/Sub-district Cooperatives,” Ferry said during his opening speech at the MPDI National Seminar in Malang, East Java, on Saturday.

He explained that the KDKMP programme is driven to move the economy towards a more productive direction, necessitating detailed profit potential calculations to ensure benefits for the community.

The cooperatives will serve as distribution points for subsidised goods, ranging from 3kg LPG cylinders and fertiliser to rice and cooking oil.

He noted that for subsidised goods, such as 3kg LPG marketed through KDKMP, prices must be ensured to be affordable. Furthermore, stock levels must be guaranteed to meet the needs of the community within each village or sub-district.

“Similarly, for subsidised fertiliser, PT Pupuk Indonesia will supply directly to the Merah Putih Village/Sub-district Cooperatives,” he added.

KDKMP is also expected to act as an entity that absorbs and trades products from agriculture, livestock, plantations, fisheries, and local handicrafts at competitive prices.

Additionally, Minister Ferry mentioned that there are currently approximately 13,000 KDKMP outlets where physical construction has reached 100 per cent completion.

Furthermore, the construction of these outlets is being carried out by PT Agrinas Pangan Nusantara in collaboration with the Indonesian National Armed Forces (TNI), allowing the stages to proceed rapidly.

“Meanwhile, around 20,000 [units] are currently in progress,” he added.

The Minister stated that while the KDKMP was initially a top-down policy, the programme’s implementation involves the roles of regional heads and relevant local agencies.

Moreover, the process of establishing the legal entity for each KDKMP is conducted through special deliberations at the village and sub-district levels.

“Therefore, it remains a bottom-up process, involving the participation of the community,” he concluded.