Merah Putih Village Cooperatives (Kopdes) will 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 strategy is to utilize Kopdes Merah Putih as the main distribution hub to ensure that rural residents have easy access to these crucial items and to streamline the supply chain. Even though Village-Owned Enterprises (BUMDes) will continue to function as usual, Kopdes will take on the primary responsibility for distributing subsidized goods and social assistance.
The government’s main objective is to establish 80,000 units of Kopdes Merah Putih to empower local communities and stimulate rural economies. The financing of these units will be closely monitored to ensure that the benefits directly impact the residents of the village. Minister Budi stressed that Kopdes should be viewed as a business entity owned by the village, with profits shared among members who are local villagers. This cooperative model aims to uphold cooperative principles and enhance economic activities within the village.