Indonesia accelerates KDKMP village cooperative program

The Indonesian government is accelerating the operationalization of the Koperasi Desa/Kelurahan Merah Putih (KDKMP) program to strengthen the national economy through village-level cooperatives. Minister of Cooperatives Ferry Juliantono has directed officials to expedite implementation in Banjarnegara, Central Java, focusing on technical socialization, physical verification of warehouses and outlets, and the deployment of professional managers to oversee daily operations.

President Prabowo Subianto expressed optimism that the economic impact of KDKMP will become significant by 2027 or 2028. The program aims to serve as a primary supply chain mechanism to reduce distribution layers. By minimizing intermediaries, the initiative seeks to lower food prices for consumers while increasing income for farmers, who currently lose significant margins to multiple middlemen.