Indonesian Political, Business & Finance News

Video: Cooperatives Minister Reveals Update on 30,000 Kopdes Merah Putih Construction

| Source: CNBC Translated from Indonesian | Economy
Video: Cooperatives Minister Reveals Update on 30,000 Kopdes Merah Putih Construction
Image: CNBC

Indonesian Cooperatives Minister Ferry Juliantono has provided an update on the development of the Kopdes Merah Putih (Red and White Village Cooperatives). Involving 18 ministries and agencies chaired by Coordinating Minister for Food Zulkifli Hasan, the establishment 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, 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 KDMP will be carried out in stages so that the business model can maximise its function as a distributor of subsidised goods and basic necessities. KDMP will also act as an off-taker for village products, including agriculture, plantations, handicrafts, and fisheries, as well as serving as an instrument for channelling government social assistance programmes to ensure they are precisely targeted. All activities within KDMP will encompass the entire economic activity of the community, including addressing issues with middlemen and loan sharks. Furthermore, villagers will serve as KDMP administrators, although the manager position will be filled through a public recruitment process. The minister also assured that the government is receptive to public input regarding KDMP development efforts, including issues concerning land and cooperative locations that have recently gone viral.

View JSON | Print