Zulhas confirms all social assistance to be channelled through 'Red and White' Village Cooperatives

All social assistance and other government aid will in future be channelled through Kopdes, centralised at Kopdes.

Jakarta (ANTARA) — Coordinating Minister for Food Affairs Zulkifli Hasan has confirmed that all social assistance (bansos) and other government aid will be distributed through the Red and White Village/Neighbourhood Cooperatives (Kopdes).

Zulkifli Hasan made the statement after attending a limited meeting led by President Prabowo Subianto, which lasted around three and a half hours at the Presidential Palace complex in Jakarta on Thursday.

“Bansos, government assistance — all of it will go through Kopdes, centralised at Kopdes,” said the man affectionately known as Zulhas in his press statement.

According to him, the initial operational phase of the Red and White Village and Neighbourhood Cooperatives is targeted to begin in September. At that stage, around 25,000 cooperatives are expected to be operating from August through to September.

Zulhas said the number of operating cooperatives is targeted to increase to 35,862 units by the end of the year. After a two-year improvement process, the cooperatives will be handed over to the villages, as they are owned by the villages.

“Two years of repairs, fixing and settling things — after two years they will be handed over to the villages, because these are village-owned cooperatives,” said Zulhas.

He added that during the limited meeting, President Prabowo Subianto also stressed that all ministries and agencies must give their full support to the operations of the Red and White Village and Neighbourhood Cooperatives. That support will also involve the Indonesian National Armed Forces (TNI) and the National Police (Polri).

Previously, the Ministry of Social Affairs (Kemensos) had been simulating the distribution of social assistance to beneficiaries through the Red and White Village/Neighbourhood Cooperatives (KDKMP).

“Going forward, we are exploring and simulating the distribution of bansos through the Red and White Village Cooperatives that are already operating. We will then try out which approach is most suitable and best,” said Minister of Social Affairs Saifullah Yusuf in response to journalists’ questions after a plenary cabinet session at the Presidential Palace complex in Jakarta on Monday (20 July).

The Ministry of Social Affairs, he said, has two types of social assistance: the Non-Cash Food Assistance (BPNT) and the conditional cash transfer under the Family Hope Programme (PKH), which are usually distributed via bank transfers.

In particular, the PKH cash assistance — which has so far been distributed through PT Pos Indonesia and banks belonging to the Association of State-Owned Banks (Himbara) — could potentially be withdrawn at KDKMP outlets that host Himbara bank branches.

“The bansos could also possibly be spent at the KDKMP,” said the Minister of Social Affairs.