Indonesian Political, Business & Finance News

Zulhas and Cooperatives Minister Explain Viral 'Red and White' Village Cooperatives in Forests and Mountains

| Source: DETIK_BALI Translated from Indonesian | Economy
Zulhas and Cooperatives Minister Explain Viral 'Red and White' Village Cooperatives in Forests and Mountains
Image: DETIK_BALI

The location of Village/Sub-district Cooperatives (Kopdeskel) Merah Putih in the middle of fish farms, on beaches, in forests, and in mountainous areas has drawn a wave of criticism on social media. Responding to this, Coordinating Minister for Food Zulkifli Hasan and Minister of Cooperatives Ferry Juliantono have spoken out.

Coordinating Minister for Food Zulkifli Hasan stated that the location of the Kopdeskel Merah Putih is tailored to its primary function as an absorber of community produce (offtaker), not as a shopping centre or supermarket. “There is a lot of talk, why is the Cooperative in the mountains? The Merah Putih Fishermen’s Cooperative is at sea. Well, on the beach, where else would it be? Because it serves the interests of the village as an offtaker,” Zulhas said during a national coordination meeting for the maritime and fisheries sector at the Mina Bahari III Building, Central Jakarta, Thursday (2/7/2026).

“The point is, for example, the Village Cooperative, sir, is for that. The Merah Putih Fishermen’s Village is for an offtaker. It is not a supermarket,” Zulhas added. According to Zulhas, the Kopdeskel Merah Putih will also act as government infrastructure to channel various aid programmes to village communities. The distribution of aid, such as the Family Hope Programme (PKH), rice assistance, agricultural tools, and even tractors, will later be carried out through the cooperatives.

“What is government infrastructure? Later, the Village Cooperative will distribute the PKH, the 10-kilogramme rice. Previously it was the village, now it will be at the Merah Putih Village Cooperative. Tractor assistance, agricultural assistance, later the Village Cooperative will manage it so that everyone can use it, not just for certain groups,” Zulhas explained. Furthermore, the Merah Putih Village Cooperative will become an instrument for maintaining food price stability. Zulhas gave an example that if the price of rice soars in a region, market operations will be conducted through the cooperative to minimise the risk of misappropriation.

“If in one province the price of a product is very expensive, rice for example, we must conduct a market operation. Now, where do we send it? If we send it to the market, the cooking oil gets adulterated. So later, it will be through the village cooperative,” he clarified. Meanwhile, Minister of Cooperatives Ferry Juliantono assessed that the number of locations being questioned on social media is very small compared to the total construction of Kopdeskel Merah Putih across Indonesia. He has checked himself that the complaints regarding less strategic locations amount to fewer than ten points.

“I have counted the number, can you try to mention it? Less than 10 from what we often read on social media,” Ferry said during a press conference at his office in South Jakarta, Thursday (2/7/2026). He is targeting around 30,000 Kopdeskel Merah Putih to have completed the physical construction of warehouses, outlets, and supporting equipment by this coming August. Of that total, 14,000 cooperatives are currently completed and around 20,000 are under construction.

“Out of the 30,000 whose physical construction of warehouses, outlets, and equipment will be built by August, 10 points are in less than ideal condition. In my opinion, it cannot be said, that is a small percentage,” Ferry added. Ferry explained that the determination of the construction locations for the Merah Putih Cooperatives was not decided unilaterally by the central government. The selection of location points, he said, went through a lengthy deliberation process involving the village community and the local village head.

Nevertheless, he confirmed that a field verification and validation process will be carried out to check the real conditions at the disputed locations. “And yet the location determination has been deliberated by the village community and the village head, so we will think about it, we will find a solution if indeed it is considered lacking,” he explained. Regarding whether the locations will be relocated, Ferry stated that his party must go through a verification and evaluation process first. This process will involve the regional government and the community.

“Later we will think about it, we will find a solution, but there is a verification and validation process involving the government and other institutions as well. For that, we will return to deliberation with the village community and the village head as well, yes of course,” Ferry clarified.

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