Minister: 'Red and White' Village Co-ops to Slash Agricultural Supply Chain

REPUBLIKA.CO.ID, JAKARTA – Agriculture Minister Andi Amran Sulaiman said the government is shortening the supply chain in the agricultural sector through the Red and White Village/Neighbourhood Cooperatives (KDKMP), cutting it from eight links to three.

“For the agricultural sector, the main function is to cut the supply chain — from eight links down to three,” Amran said at a press conference on the draft Presidential Regulation (Perpres) on the Governance of KDKMP Implementation in Jakarta on Tuesday (28/7/2026).

Amran explained that the three links consist of farmers, cooperatives, and the public as consumers. According to him, the government has calculated the potential economic value of nine agricultural commodities, finding that middlemen or intermediaries in the sector reap profits of around Rp 313 trillion.

“Let’s say the cooperatives take just Rp 50 trillion. That means there is Rp 263 trillion that farmers can enjoy,” Amran said.

He said the Rp 263 trillion would circulate within villages, thereby driving the grassroots economy. Beyond shortening the supply chain, Amran said the KDKMP would also make it easier for farmers to access fertiliser.

“So fertiliser will no longer be far from farmers, because it will be available in the villages through the cooperatives that distribute it,” he said.

For this reason, Amran expressed confidence that the presence of Red and White Village Cooperatives in every village would accelerate village economic turnover, shorten supply chains, improve farmers’ welfare, and boost people’s purchasing power.

The government targets around 25,000 Red and White Village Cooperatives to begin operating between August and September 2026, with the number expected to rise to 35,862 units by the end of 2026.