Merah Putih Village Cooperatives (Kopdes) are set to play a vital role in distributing subsidized essential goods like LPG and fertilizers in rural areas, according to Minister of Cooperatives Budi Arie Setiadi. The government’s strategy involves utilizing Kopdes Merah Putih as the primary distribution hub to ensure direct access to these fundamental necessities for rural inhabitants and streamline the supply chain. Although Village-Owned Enterprises (BUMDes) will continue operations as usual, Kopdes will serve as the principal channel for distributing subsidized goods and social aid.
The government’s primary objective is to establish 80,000 Kopdes Merah Putih units to empower local communities and enhance rural economies. Financing for these units will be meticulously managed to ensure that the benefits directly benefit village residents. Minister Budi stressed the importance of viewing Kopdes as a business entity owned by the village, with profits being shared among members who are local villagers. This cooperative approach aims to reinforce cooperative principles and bolster economic activities within the village.
