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 aims to utilize Kopdes Merah Putih as the primary distribution center to ensure direct access for rural residents to these basic necessities and streamline the supply chain. Despite the continued operation of Village-Owned Enterprises (BUMDes), Kopdes will be the key channel for the distribution of subsidized goods and social assistance.
The government is prioritizing the establishment of 80,000 Kopdes Merah Putih units to empower local communities and enhance rural economies. The funding for these units will be managed carefully to ensure that the benefits directly benefit village residents. Minister Budi stressed the importance of perceiving Kopdes as a business institution owned by the village, with profits shared among members who are local villagers. This cooperative approach aims to reinforce cooperative principles and bolster economic activities within the village.