Merah Putih Village Cooperatives (Kopdes) are set to play a vital role in the distribution of subsidized essential goods such as 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 primary distribution hub to ensure direct access to these basic necessities for rural residents and to streamline the supply chain. While Village-Owned Enterprises (BUMDes) will continue their regular operations, Kopdes will serve as the main channel for distributing subsidized goods and social assistance.
The government’s objective is to establish 80,000 units of Kopdes Merah Putih to empower local communities and enhance rural economies. The financing of these units will be carefully managed to ensure that the benefits directly impact village residents. Minister Budi stressed that Kopdes should be regarded as a business entity owned by the village, with profits shared among its members who are local villagers. This cooperative approach aims to strengthen cooperative principles and bolster economic activities within the village.