Antara News·Indonesia·Sunday, October 18, 2026 at 09:07 AM UTC

Village cooperatives projected to cut household spending

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Shofi, Kenzu

Jakarta (ANTARA) - The Cooperatives Ministry estimated that Red and White Village Cooperatives (KDKMP) could save households Rp200 thousand-Rp300 thousand per month.

Cooperatives Ministry Secretary Ahmad Zabadi said in a press statement here on Sunday that the savings come from distributing various subsidized commodities through the cooperatives.

The cooperatives serve as one distribution channel for subsidized commodities, including 3-kilogram liquefied petroleum gas (LPG), Food Supply and Price Stabilization (SPHP) rice, Minyakita cooking oil, and fertilizer.

"Every family is estimated to save an average of around Rp200 thousand-Rp300 thousand per month because all subsidized commodities will be distributed through KDKMP," Zabadi said.

According to him, distributing commodities through KDKMPs is directed at ensuring eligible people can obtain subsidized goods at prices in line with government policy.

The scheme is also expected to help reduce household spending burdens.

Besides serving as a channel for subsidized goods, KDKMPs are projected to become offtakers, or absorbers of village community products.

Through this function, the cooperatives are expected to absorb agricultural, fishery, and community business products so producers have market and price certainty.

Zabadi said the cooperatives are also directed to absorb commodities when prices come under pressure. For rice, for example, absorption is expected to take place when harvest prices fall below the government-set price.

Meanwhile, KDKMPs are projected to become part of the infrastructure for distributing government programs at the village level, including food aid, financing, and agricultural tools and machinery.

The ministry assessed that local cooperatives can help improve the effectiveness of program distribution while widening public access to various economic needs and services.

On the same occasion, Zabadi mentioned that the KDKMP program has the potential to create 1 million to 1.5 million jobs if more than 83,000 cooperatives, which serve as the basis for this projection, each require an average of 10 to 17 workers.

He also urged universities and graduates to take part in developing cooperatives through research, innovation, and strengthening of business models in the regions.

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