Indonesian Political, Business & Finance News

Ministry of Social Affairs and Agrinas Finalise Scheme to Empower PKH Beneficiaries in Red and White Village Cooperatives

| Source: ANTARA_ID Translated from Indonesian | Social Policy
Ministry of Social Affairs and Agrinas Finalise Scheme to Empower PKH Beneficiaries in Red and White Village Cooperatives
Image: ANTARA_ID

Jakarta (ANTARA) - The Ministry of Social Affairs, together with PT Agrinas Pangan Nusantara, is finalising the scheme to empower beneficiary families of the Family Hope Programme (PKH) social assistance in the operations of Red and White Village/Ward Cooperatives.

Social Affairs Minister Saifullah Yusuf emphasised that the programme’s implementation must prioritise honesty, maximum effort, and a solution-oriented approach, so that programme achievements are reported realistically in line with field capabilities.

“The most important thing is maximum effort, honesty with existing capabilities, and continuing to provide solutions so that this programme truly benefits the community,” he said when receiving the President Director of PT Agrinas Pangan Nusantara, Joao Mota, at the Ministry of Social Affairs office on Tuesday.

In that meeting, the readiness for programme implementation was also discussed comprehensively, from institutional schemes, workforce recruitment, training, to distribution systems and digitalisation of village cooperatives integrated from the centre to the village level.

Saifullah appreciated the concept of the Red and White Village Cooperative, which he considered simple yet functional. The cooperative’s design allows it to be utilised as a warehouse, distribution outlet, and centre for village community economic activities in an efficient and straightforward manner.

“We go directly to the community and dialogue with PKH recipients. The most important thing is honesty and basic experience. This programme opens opportunities for them to become empowered,” said Joao.

He explained in that meeting that the recruitment scheme is focused on local villagers, with qualifications adjusted to operational needs. Positions such as sales assistants, cashiers, and logistics staff can be filled by community members with a minimum junior high school education and basic work experience.

To support operations, Agrinas is preparing tiered training. Each cooperative will have two deputy unit heads who will undergo intensive training for 10-12 days.

Subsequently, they will train around 15-16 operational staff at the village level, covering service, administration, and goods distribution functions.

“This system is digital-based with measurable standard operating procedures. Performance will be monitored, so the cooperative runs optimally and accountably,” said Joao.

He assured that the Red and White Village/Ward Cooperative system is fully integrated. Goods flow management is controlled from Agrinas’s head office, connecting principals or producers with distribution centres. From distribution centres, goods are delivered directly to village cooperatives or retail cooperatives and then sold to the community.

On the other hand, the Red and White Village/Ward Cooperative also serves as an aggregator of community production outputs, such as agricultural harvests, which then re-enter the distribution system. Thus, the cooperative not only becomes a distribution point for incoming goods but also a marketing channel for village produce.

That scheme is seen to simultaneously shorten long distribution chains, allowing village communities to obtain goods at more affordable prices. In addition, producers gain broader market access down to the village level.

From an institutional perspective, all villagers become part of the cooperative through a participatory approach. The majority of cooperative profits are returned to the village, while Agrinas acts as a companion during the two-year transition period before full management is handed over to the village cooperative.

“In some areas, cooperative buildings are already ready. This becomes important capital so that the programme can run quickly and provide benefits,” said Agus Jabo, adding optimism that through this collaboration, the Red and White Village/Ward Cooperative can become a strategic instrument in accelerating the eradication of extreme poverty, while also promoting village community economic independence through community-based empowerment.

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