Village Associations Hope KDKMP Can Boost Productivity and Drive Local Economy

The All-Indonesia Village Government Association (APDESI) Merah Putih has positively welcomed the formation of the Merah Putih Village Cooperative (KDKMP). The presence of this cooperative is expected to accelerate a self-reliant and prosperous economy at the village level. Chairman of DPP APDESI Merah Putih, A. Anwar Sadat, stated that the KDKMP aligns with President Prabowo Subianto’s grand vision, which establishes a framework for a sustainable economy that leverages the natural potential and human resources of villages. Anwar emphasised that villages must be pioneers and guardians to ensure the KDKMP programme is implemented properly. The association has high hopes that the cooperative can boost residents’ productivity across various sectors. “The great hope is to build productivity, both in terms of mindset and lifestyle, as well as productivity related to natural potential, whether in agriculture, plantations, fisheries, or livestock,” Anwar stated at the KDKMP National Seminar at the Sasana Kriya Building, Taman Mini Indonesia Indah, Jakarta, Thursday (16/7). According to him, a broad allocation of money circulation for villages will significantly bring economic services closer to the community. “When the market, when this money is given as widely as possible to villagers, it brings services and the village economy closer, so that rural communities have hope and a future, building optimism that the village can become the frontline in economic, social, cultural, educational, and health fields, among others,” he continued.

Similar support came from the Chairman of the National Association of Village Consultative Bodies (APERTNAS), Ir. H. Indra Utama. He stated that this national seminar serves as a strategic platform to correct misperceptions within the community. “Regarding today’s seminar, this is the result of a long discussion with colleagues, the General Chairpersons of Village Associations, and village friends to find and provide solutions and answers. There are many questions and perhaps misperceptions about how this future programme will be implemented. The hope is that today’s seminar can answer all the issues and questions that have been present among some village communities,” Indra explained. Indra confirmed his party’s strong support for KDKMP because the programme is believed to be able to break the long chain of bureaucracy. “APERTNAS sees and strongly supports the Merah Putih Village Cooperative programme initiated by President Prabowo Subianto, because this can truly drive the village economy and cut the long bureaucratic chain. The process is indeed still ongoing. We see that in the future, the Village Cooperative will become the backbone and mainstay of the village community,” he said. He outlined three key preparations for the cooperative’s success: “1. The management of the Village Cooperative must be orderly and in accordance with applicable legal regulations. 2. The administrators must be professional, have integrity, and possess competence, especially regarding cooperatives. 3. APERTNAS and the community must play an active role in supervising so that the cooperative can run according to the community’s expectations.”

Indra also dismissed concerns about the potential for KDKMP to kill off local small businesses. “We see that this Merah Putih Village Cooperative will have many derivatives. There was information yesterday that the ministry has started to agree that the Village Cooperative will be the distributor of all subsidies provided by the government to the community. I think this is progress. We might have thought the Merah Putih Village Cooperative would kill off community stalls that have existed in the village for decades, but it turns out it won’t. Instead, the Merah Putih Village Cooperative will become a distributor for every community stall, so they will get better prices because it cuts the chain from large distributors or agents,” he explained.

A commitment to protecting village MSMEs was also emphasised by the Chairwoman of the All-Indonesia Village Government Officials Association (PAPDESI), Hj. Wargiyati. “Our hope from DPP PAPDESI and also village governments throughout Indonesia—we have 343 branches across Indonesia—is that what has been conveyed by the Vice Minister, the Minister, and the speakers can be implemented in the Village Cooperatives in all villages and sub-districts throughout Indonesia. So, to improve the people’s economy, facilitate the procurement of fertiliser, gas canisters, health access, and daily necessities that can be marketed through village stalls at prices cheaper than the market,” Wargiyati explained. “And of course, our commitment to the Village Cooperative is that we agree not to sell products directly to the village community, because we prefer to be a distributor or supplier for the stalls in the village. So, it does not kill the small and medium enterprises in our villages,” she added. Wargiyati hopes that KDKMP will be truly empowered to the maximum, including in supporting other national programmes. “Hopefully, what we have agreed with the Coordinating Minister and the Minister is that in the future, the Village Cooperative will truly become the distributor for the needs of the National Nutrition Agency or the Free Nutritious Meals (MBG) programme in each village. So, village products can fulfil or become suppliers for MBG through the Village Cooperative and also the Village-Owned Enterprises (BUMDes). So, the Village Cooperative is truly empowered so that it can also thrive. And finally, we hope that village communities can be facilitated to become employees of the Merah Putih Village Cooperative and also the Kelurahan according to their respective regions. Thank you,” she said.

The seminar also produced several recommendations, including: 1. Supporting the acceleration of the establishment, institutional strengthening, and development of the Merah Putih Village/Sub-district Cooperative as part of the national village-based development strategy. 2. Committing to making KDKMP a centre of village economic activity that is managed professionally, transparently, accountably, and oriented towards the welfare of its members and the community.