Two Functions of the Koperasi Merah Putih According to Zulkifli Hasan

Coordinating Minister for Food Zulkifli Hasan has reiterated that the Koperasi Merah Putih is not a supermarket. The clarification addresses what is considered a mistaken perception regarding the cooperative’s function.

“This cooperative is a government infrastructure for distributing subsidised goods and government aid items,” he said following a meeting on the Draft Presidential Regulation on the Governance of KDKMP Implementation at the Coordinating Ministry for Food’s office in Jakarta on Tuesday, 28 July 2026.

Zulkifli stated that the Koperasi Merah Putih has two functions. First, as a government infrastructure for distributing subsidised goods and government aid. Second, as an offtaker or absorber of agricultural products such as grain and other commodities.

Additionally, the cooperative will purchase farmers’ Harvested Dry Grain (GKP) at the Government Purchase Price (HPP), which is currently set at Rp 6,500 per kilogram. “Of course, the most fundamental aspect will be implemented first,” he said.

If a cooperative is already running well, Zulkifli said, its function could develop into a tourism village or thematic village. However, he did not elaborate further on when that phase would begin.

The government is targeting 35,334 cooperative units to be fully operational this year. From that number, the final target for operating cooperatives is 80,000 units.

Currently, the Koperasi Merah Putih is still drawing criticism from various parties. This is because each unit is still implementing sales practices similar to existing retail outlets, and there are issues with locations.