Merah Putih Village Cooperatives (Kopdes) will have a significant 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 is to utilize Kopdes Merah Putih as the primary distribution point to ensure rural residents have direct access to these basic necessities and to streamline the supply chain. While Village-Owned Enterprises (BUMDes) will maintain 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 Kopdes Merah Putih units to empower local communities and stimulate rural economies. The financing for these units will be carefully managed to ensure that the advantages positively impact village residents. Minister Budi stressed that Kopdes should be viewed as a village-owned business institution, with profits distributed among members who are local villagers. This cooperative approach aims to bolster cooperative principles and reinforce economic activities within the village.