Village associations propose KDKMP strengthen partnerships with local shops
The Forum Organisasi Desa Indonesia, comprising 10 village associations, has proposed that the Village/Subdistrict Red and White Cooperatives (KDKMP) strengthen partnerships with local shops through their distribution function to reinforce the business ecosystem and boost economic turnover in villages.
Wargiyati, Chairperson of the Central Board of the Indonesian Village Government Officials Association (Papdesi), said the partnership model is expected to strengthen the distribution network for community needs while providing benefits to micro, small and medium enterprises (MSMEs) in villages.
“Local shops in villages need not worry, because KDKMP will not sell its products at prices lower than those of the shops,” Wargiyati said during a press conference by the Forum Organisasi Desa Indonesia in Jakarta on Wednesday.
He said the cooperative is instead expected to become a supplier for village shops, enabling small business operators to obtain goods at more competitive prices. “The Kopdes Merah Putih will actually become a distributor for village shops with prices cheaper than market prices,” he stated.
Wargiyati said the scheme is expected to allow village shops to continue thriving because they will gain access to cheaper goods sourced from the cooperative. “So the existing village shops will remain alive, and even benefit more from the presence of the Kopdes and Kelurahan Merah Putih,” he added.
Meanwhile, Asep Anwar Sadat, Chairperson of the Central Board of the All-Indonesia Village Government Association (Apdesi) Merah Putih, said KDKMP needs to function as a semi-distributor that strengthens the supply chain for community needs in villages. He said dividing roles between the cooperative and shops will create a mutually supportive business ecosystem while sustaining the community’s sources of income.
“KDKMP must not become a competitor to residents’ shops. Instead, it must be the foremost partner, a strategic partner in marketing to the community itself,” Asep said.
Beyond strengthening shop businesses, he said KDKMP is also expected to create jobs because the management of the cooperative will involve village residents.
Rudianto Indris, Vice Chairperson of the Retired Village and Subdistrict Heads Community (Kompakdesi), said many villagers still rely on additional income from selling basic necessities, so the partnership model must be a key consideration in cooperative development. “One of our suggestions from the Retired Village Heads is that the Kopdes should not sell at retail, should not conduct retail sales, because that could kill their businesses,” Rudianto said.
The Forum Organisasi Desa Indonesia believes that partnerships between KDKMP and local shops and MSMEs can strengthen the sector’s role as a sustainable driver of the village economy.
The government is directing KDKMP to become village economic service centres providing basic necessities, fertiliser, LPG, financial services, and marketing of community products. The cooperatives are also encouraged to partner with shops and MSMEs through special pricing access resulting from cooperation with several state-owned enterprises, thereby strengthening goods distribution while avoiding unfair competition with residents’ businesses.
Furthermore, KDKMP is being prepared to become a marketing hub for local MSME products and a link between producers, suppliers, shops and consumers in villages. The government considers that this model can shorten supply chains, improve distribution efficiency and strengthen the local economy.
The Ministry of Cooperatives has recorded that 83,944 KDKMP have been legally established across Indonesia. Of this number, the target is to complete the construction of 40,000 KDKMP by the end of 2026. The government notes that the physical construction of 15,845 cooperatives has been completed, while 19,539 others are still under construction.
Meanwhile, according to data from the Ministry of MSMEs as of July 2025, Indonesia has around 65.5 million MSMEs that absorb more than 119 million workers, or about 97 percent of the national workforce, contributing 61.9 percent to the gross domestic product.