Village Minister says Kopdes will complement existing BUMDes business units

Minister of Villages Yandri Susanto has said the presence of the Koperasi Desa Merah Putih (KDMP) will complement the business units already managed by Village-Owned Enterprises (BUMDes), which have their own distinctive business characteristics. “So this is just cooperation, a collaboration between BUMDes and Kopdes. They will not negate each other and will not bring each other down, but rather strengthen one another,” Yandri told the press after a Limited Coordination Meeting on Village/Sub-district Cooperatives in Jakarta on Monday. Based on business focus, BUMDes concentrates on village-scale business units such as tourist attractions, markets, clean water, and public services. Meanwhile, Kopdes is more targeted at the direct daily needs of residents, such as providing basic necessities and savings and loans, as well as becoming an aggregator for agricultural and handicraft products. He stated that BUMDes and Kopdes are designed to complement each other and strengthen the village economy without destroying one another. He said Kopdes will later complete the needs of BUMDes business units, which have so far managed specific enterprises run by villagers. For example, a BUMDes managing a tourist village will later be assisted in preparing the needs of that tourist village through goods sold at the Kopdes. Furthermore, BUMDes that create thematic villages or export villages will be strengthened by the presence of Kopdes, and it is ensured that the needs offered to the community will not overlap. Yandri also said Kopdes will primarily sell subsidised goods and its operations will be regulated in detail through a Presidential Regulation currently being drafted, targeted for completion within one month, so that Kopdes can still coexist with small shops and grocery stalls. “God willing, it will not kill off small shops or grocery stalls in the village; it will be arranged in such a way that everyone remains alive and strong,” Yandri said. Meanwhile, the government continues to accelerate the development of Kopdes across the archipelago, targeting tens of thousands of units, whilst arranging the coordination chain so that the collaboration between the two can boost residents’ welfare.