Purbaya assures that managers' salaries for KDMP will not add new budget allocation

Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa has assured that the budget for paying the salaries of managers of the Merah Putih Village Cooperatives (Kopdes Merah Putih) will not create a new budgetary position. The required funding can be met from the remaining allocations of the Kopdes Merah Putih programme funds that have not yet been fully absorbed. “We will allocate from several related ministries and agencies. Like this, the Kopdes Merah Putih is allocated a certain amount each year. Not all have been formed yet, right? There is still excess money there that can be used for that (managers’ salaries) for the time being. It’s only for the next two years. So, the money is there,” Purbaya said during a media briefing in Jakarta on Monday. Previously reported, Coordinating Minister for Food Affairs and Head of the Task Force for Accelerating the Formation of Kopdes Merah Putih, Zulkifli Hasan, explained the status of Kopdes Merah Putih managers after their two-year contract period ends. He stated that managers who pass the selection will be contracted under a fixed-term employment agreement (PKWT) under the auspices of the state-owned enterprise PT Agrinas Pangan Nusantara for two years. “For the time being (PKWT) two years. After two years, they will become cooperative officials,” he said during a press conference at his office in Jakarta on Monday. Under this scheme, the managers in the initial stage will have the status of Agrinas Pangan employees. The government considers this model necessary to support the formation and initial operations of Kopdes Merah Putih in various regions. Regarding salaries, Zulkifli stated that payments during the contract period will be handled by Agrinas Pangan, in line with the managers’ status under the state-owned enterprise. “Later, because they are Agrinas employees, of course Agrinas Pangan will pay,” he said. However, Zulkifli has not yet disclosed in detail the funding source or the amount of salary the managers will receive. The government is opening 30,000 positions for Kopdes Merah Putih managers. Until the registration closure on 24 April 2026, the number of applicants reached 639,732 people. Zulkifli explained that Kopdes Merah Putih is formed as a centre for new economic growth at the village and sub-district level, in line with the President’s directive to strengthen the people’s economy from the grassroots. Through these cooperatives, the government aims to shorten the supply chain, which has so far been deemed too long, while strengthening the position of farmers and village business actors. Kopdes Merah Putih will also serve as an offtaker or absorber of community production results so that commodity prices remain stable. In addition to its economic function, this cooperative will act as an extension of the government in distributing social assistance and subsidised goods to ensure they reach the right targets.