Merah Putih Village Cooperatives (Kopdes) are set to have a significant role in the distribution of subsidized essential goods like LPG and fertilizers in rural areas, according to Minister of Cooperatives Budi Arie Setiadi. The government’s plan is to utilize Kopdes Merah Putih as the primary distribution point to ensure direct access to these basic necessities for rural residents and to streamline the supply chain. While Village-Owned Enterprises (BUMDes) will maintain their normal operations, Kopdes will serve as the primary channel for distributing subsidized goods and social assistance.
The government’s main focus is on establishing 80,000 units of Kopdes Merah Putih to empower local communities and enhance rural economies. The funding for these units will be carefully managed to ensure that the benefits directly impact the residents of the villages. Minister Budi stressed that Kopdes should be viewed as a business institution owned by the village, with profits shared among members who are local villagers. This cooperative approach aims to reinforce the cooperative principles and strengthen economic activities within the village.