Jakarta — The Merah Putih Village Cooperatives (Kopdes) will serve as the central distribution point for subsidized essential goods in rural areas, including LPG and fertilizers, according to Minister of Cooperatives Budi Arie Setiadi.

Speaking at the Presidential Palace in Jakarta on Thursday, May 8, Minister Budi stated that the government will channel subsidized basic necessities through Kopdes Merah Putih, ensuring direct access for rural residents while significantly shortening supply chains.

Regarding the role of Village-Owned Enterprises (BUMDes), Budi emphasized that they will continue to operate as usual. However, Kopdes will be the government’s primary vehicle for distributing subsidized goods and social assistance.

“BUMDes will still exist and continue as they are. BUMDes are village-owned enterprises. Kopdes, on the other hand, are owned by the residents themselves. Both can operate side by side,” Budi explained.

“But for distributing government-subsidized essentials, the Kopdes Merah Putih will be the official channel. The President has also emphasized that Kopdes will become the main hub for all economic activities in the village—social aid, LPG, rice—everything will go through Kopdes,” he added.

The government aims to establish 80,000 Kopdes Merah Putih units to empower local communities and build self-sufficient rural economies. The financing model will be handled with caution, ensuring that it directly benefits village residents.

“Kopdes should be understood as a business institution, but one that is owned by the village. Its profits are shared among members, who are, by definition, local villagers. That’s the cooperative principle we want to reinforce,” Budi concluded.