PKH and Food Aid to Be Distributed Through Village Cooperatives: Here’s How It Will Work
Jakarta, CNBC Indonesia — The government has begun distributing social assistance under the Family Hope Programme (PKH) and the Non-Cash Food Assistance programme (BPNT), also known as food assistance, through Merah Putih Village/Urban-Ward Cooperatives (KDKMP). The scheme is expected to make assistance easier to access while encouraging economic activity in villages.
Social Affairs Minister Saifullah Yusuf, known as Gus Ipul, said distribution through Merah Putih cooperatives was being piloted in several locations. Assistance can be distributed at cooperatives that are already operating and have all the necessary supporting equipment.
“Today we also tested the distribution of social assistance, both PKH and Non-Cash Food Assistance, which can now be collected at cooperatives. Where they are operational and fully equipped, we can operate or distribute it through the cooperatives,” Gus Ipul said in a Social Affairs Ministry statement, quoted on Friday (16 October 2026).
Gus Ipul explained that distribution would involve the state-owned banks belonging to the Himbara association. Their banking agents will open service counters directly at village cooperatives.
As a result, social assistance recipients are expected to no longer have to travel long distances to access payment services.
“The distributing banks will open counters at the Village Cooperatives. This will bring services closer to beneficiaries. Secondly, they can spend the assistance directly on various basic necessities available at the cooperative,” he said.
Gus Ipul said PKH and food assistance beneficiaries would automatically become members of KDKMP.
He stressed that distributing assistance through cooperatives would not incur additional charges or deductions from recipients’ entitlements.
“Gradually, trials have already begun at several locations. Later, everything will go through there [the cooperatives], in line with the President’s direction. Not a single rupiah will be deducted,” he said.
The government will gradually expand the scheme until all social assistance can be distributed through Merah Putih cooperatives, in line with President Prabowo Subianto’s instructions.