Social Affairs Ministry Simulates Social Assistance Distribution via 'Red and White' Cooperatives

The Ministry of Social Affairs (Kemensos) is currently simulating the distribution of social assistance (bansos) to beneficiaries through the Village/Sub-district Red and White Cooperatives (KDKMP). Social Affairs Minister Saifullah Yusuf stated that the ministry is exploring and simulating the distribution of social assistance in KDKMPs that are already operational. “We will try to see what is suitable and what works best,” he told reporters after a Plenary Cabinet Session at the Presidential Palace complex in Jakarta on Monday. The ministry has two types of social assistance: Non-Cash Food Assistance (BPNT) and the conditional cash transfer of the Family Hope Programme (PKH), which are usually distributed via bank transfer. Specifically for the PKH cash assistance, which has been distributed through PT Pos Indonesia and state-owned banks (Himbara), there is potential for disbursement at KDKMP outlets that host Himbara bank services. “It is also possible to spend the social assistance at the KDKMP,” the Minister said. The Minister previously stated that his ministry had coordinated with the Ministry of Cooperatives and various related parties regarding the distribution of social assistance through KDKMP locations. “We will now test this in several places. Hopefully, the target is to start the trial around August,” he said. This initiative aligns with President Prabowo Subianto’s directive for ministries and agencies to support the strengthening of KDKMP implementation. The distribution of social assistance through KDKMP is based on Presidential Instruction Number 9 of 2025 concerning the Acceleration of the Establishment of Village/Sub-district Red and White Cooperatives, which encourages social assistance beneficiaries to become KDKMP members. Under this instruction, the Ministry of Social Affairs is also asked to facilitate the marketing and promotion of products made by social empowerment programme beneficiaries through the KDKMP. Data from the Ministry of Cooperatives shows that 15,845 KDKMPs had been completed by mid-July 2026, with a further 19,539 cooperatives still under construction.