Video: Cooperatives Minister Reveals Agrinas and TNI Partnership to Accelerate Village Cooperative Construction

Cooperatives Minister Ferry Juliantono has provided an update on the development of the Merah Putih Village/Sub-district Cooperatives (KDMP). Involving 18 ministries and agencies chaired by the Coordinating Minister for Food, Zulkifli Hasan, the formation of 83,000 KDMP business entities has now been completed. The next phase involves the physical construction of KDMP facilities, including warehouses and retail outlets, carried out by Agrinas and the Indonesian National Armed Forces (TNI). Although the process faces challenges related to location and land availability, 12,700 units have been completed so far, with a target of 30,000 units by August 2026 and 40,000 units by the end of the year. The operation of the KDMP will be carried out in stages to ensure the business model maximises its function as a distributor and seller of subsidised goods and staple foods. The KDMP also acts as an off-taker or buyer of village community products, ranging from agriculture and plantations to handicrafts and fisheries, as well as an instrument for distributing government social assistance programmes to ensure they are precisely targeted. All activities within the KDMP will encompass the entire spectrum of community economic activity, including addressing issues related to middlemen and loan sharks. Furthermore, village residents will serve as the management of the KDMP, although the manager position will be filled through a public recruitment process. The Minister also assured that the government is receiving public input regarding the development of the KDMP, including on the currently viral issues of land and cooperative locations.