Antara News·Indonesia·Friday, October 16, 2026 at 05:09 AM UTC

Indonesia enlists village cooperatives to distribute subsidies, aid

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A. Chusna, Tegar Nurfitra

Kediri (ANTARA) - Indonesian government seeks to use facilities established under the Red and White Village Cooperatives (KDMP) program to expand the nationwide distribution of subsidized staple goods and aid, the Coordinating Minister for Food Affairs Zulkifli Hasan said.

"Village cooperatives are intended to distribute subsidized goods, enabling residents to access them directly at affordable prices without having to go through middlemen," Hasan said during a visit to a KDMP outlet in Kediri, East Java, on Thursday (Oct 15).

For instance, he noted the government had prepared one million tons of subsidized rice, priced at Rp12,500 (US$0.69) per kilogram, as part of efforts to protect consumers from rising prices.

He added village cooperatives are also expected to broaden access to subsidized fertilizer, subsidized LPG, cooking oil, business financing services, and various socioeconomic programs.

These include food assistance in the form of 30 kilograms of rice for each of 33.2 million beneficiaries through December 2026.

Hasan urged cooperative administrators and village officials to help ensuring aid is distributed to eligible recipients by verifying beneficiary data.

"Verification is essential. Those who receive the aid must truly be the ones entitled to it," Hasan stressed.

The role of village cooperatives also extends to banking services, he added, noting they will enable residents to withdraw and deposit cash, as well as pay electricity bills.

Furthermore, Hasan said the government intends to leverage KDMPs to broaden access to financing for micro, small, and medium enterprises (MSMEs).

The minister acknowledged there is still room for improvement in implementing the national priority program, underscoring the importance of collaboration among the central government, regional administrations, state-owned enterprises, and other stakeholders to identify and address shortcomings.

He emphasized the initiative aims to strengthen rural communities and expressed hope that village cooperatives would develop into growth centers that help market MSME products while bringing government programs and services closer to residents.

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