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

Malang, East Java (ANTARA) - Minister of Cooperatives Ferry Juliantono has stated that his ministry is continuing to prepare the operational stages of the Red and White Village/Sub-district Cooperatives (KDKMP), with one focus being the discussion of the business model. “We are currently finalising the business model and feasibility study for the operational activities of the Red and White Village/Sub-district Cooperatives,” Ferry said in his opening speech at the MPDI National Gathering agenda at the Daarul Ukhuwwah Islamic Boarding School in Malang Regency, East Java, on Saturday. He explained that the KDKMP programme is being pushed to drive the economy in a more productive direction, making it necessary to calculate the profit potential in detail so that it provides benefits to the community. The cooperative will serve as a place to distribute subsidised goods, including 3-kilogram LPG, fertiliser, rice, and cooking oil. Subsidised goods, such as 3-kilogram LPG marketed through KDKMP, must be ensured to be affordable, he said. Furthermore, stock must be guaranteed to be sufficient according to the needs of the community in a particular village or sub-district area. “Likewise with subsidised fertiliser, PT Pupuk Indonesia will go directly to the Red and White Village/Sub-district Cooperatives,” he stated. He mentioned that KDKMP will also act as the party that absorbs and trades the products of agriculture, livestock, plantations, fisheries, and community crafts at competitive prices. In addition, Minister Ferry noted that there are currently 13,000 Red and White Village/Sub-district Cooperative outlets whose physical construction has reached 100 percent. He added that the outlet construction is being carried out by PT Agrinas Pangan Nusantara, which is collaborating with the Indonesian National Armed Forces (TNI), allowing the stages to proceed quickly. “And around 20,000 more are currently in progress,” he said. The Minister remarked that KDKMP was initially a top-down policy, but as it progressed, the programme has also involved the roles of regional heads and relevant agencies. The process of establishing the legal entity for each KDKMP is then carried out through a special deliberation at the village and sub-district level. “So it remains bottom-up, there is an event that involves the community,” he added.