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Indonesia brings 10,070 village cooperatives into operation

The cooperatives recorded 85,427 transactions worth Rp208.64 billion as of October 16, according to the Cooperatives Ministry’s information system.

By Maya Santos

Rice packages and cooking oil on shelves in a village shop
Photo: Antara News

Indonesia had 10,070 Red and White Village Cooperatives (KDMP) operating as of October 15, the Government Communications Agency (Bakom) said. The milestone comes before the October 20 second anniversary of the administration led by President Prabowo Subianto and Vice President Gibran Rakabuming Raka.

Bakom’s deputy for partnerships and media relations, Kurnia Ramadhana, said the cooperatives were intended to reduce distribution steps and give farmers and local businesses better access to markets. The government also expects them to support goods supplies, improve producers’ bargaining position and increase the economic benefits reaching rural residents.

Figures from Simkopdes, the Cooperatives Ministry’s information system, showed Rp92.98 billion in transactions for five-kilogram rice packages under the Food Supply and Price Stabilization (SPHP) programme. That was the largest transaction category, followed by cooking oil at Rp47.07 billion.

Simkopdes also recorded completed operational facilities for 28,402 cooperatives, built by state-owned food company Agrinas Pangan Nusantara. The budget allocation for each project was Rp3 billion.

The government envisages cooperatives combining staple-goods distribution with sales of agricultural produce and local businesses’ products. Planned activities include grocery shops, pharmacies, clinics, banking services, storage and distribution.

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