PKH Beneficiaries Can Gain Additional Income from Merah Putih Village Cooperatives, Here's the Explanation
In Jakarta, Minister of Cooperatives Ferry Juliantono and Coordinating Minister for Community Empowerment Muhaimin Iskandar held a meeting to discuss strengthening Village/Urban Village Cooperatives (Kopdes) Merah Putih as a strategic instrument to drive community empowerment at the Ministry of Cooperatives office on Monday (13/4/2026). During the audience, both parties emphasised the importance of cross-sectoral synergy to ensure Kopdes Merah Putih becomes a centre for rural community empowerment to address poverty and serves as an inclusive, productive, and sustainable hub for people’s economic activities. The meeting also discussed the potential for beneficiaries of the Family Hope Programme (PKH) to become members of Kopdes Merah Putih.
“Kopdes Merah Putih is also certain to be an important instrument in achieving the target of reducing extreme poverty to zero percent,” said Ferry in a written statement in Jakarta on Monday (13/4/2026).
Ferry stated that the Coordinating Ministry for Community Empowerment has also provided guidance for Kopdes as an offtaker to absorb all community production, including agriculture, livestock, crafts, and other products. The Ministry of Cooperatives, Ferry continued, has already established cooperation with the Ministry of Social Affairs regarding PKH beneficiaries becoming members of Kopdes.
Ferry explained that by becoming members of Kopdes, beneficiaries receive economic empowerment through the cooperative and annual distribution of Remaining Business Results (SHU). This will impact the welfare of the beneficiaries, thereby accelerating their exit from decile 1 (extremely poor) and decile 2 (poor).
Coordinating Minister for Community Empowerment Muhaimin Iskandar affirmed that the government will strive as hard as possible for cooperatives to grow into an economic force capable of overcoming poverty.
“Empowerment is a mission to grow production capacity and meet domestic needs. Kopdes will drive our economy to prepare the nation to stand on its own feet,” said Muhaimin.
Muhaimin stated that Kopdes will be promoted as a centre for growing community economy through village-based local products, agriculture, or creative economy to meet local and national markets.
“In this context, local products should always emerge to fill Kopdes; we hope the existing outlets become a means of growing community productivity,” said Muhaimin.
Muhaimin emphasised that the government will continue to encourage cooperatives to enhance institutions ready to compete in challenging markets and global competition.