Indonesia's Red‑White Cooperatives to Distribute Government Social Aid

Coordinating Minister for Food Affairs Zulkifli Hasan announced that the first instalment of financing for the Village and Urban‑Kelurahan "Merah Putih" cooperatives will be due in September 2026. The payment will be made through PT Agrinas Pangan Nusantara after verification by the Financial and Development Supervision Agency (BPKP). The State‑Owned Banks Association (Himbara) is providing up to Rp240 trillion in funding, with each cooperative eligible for a ceiling of Rp3 billion to support business units, distribution facilities and rural economies.

In a separate briefing, Hasan confirmed that all government social assistance, including subsidised food and cash‑transfer programmes, will be routed through the Red‑White Village and Kelurahan cooperatives. He said about 25 000 cooperatives are expected to be operational by September, rising to roughly 35 862 by year‑end, after a two‑year restructuring phase after which the cooperatives will be handed over to the villages. President Prabowo Subianto urged full support from all ministries, the armed forces and police to ensure effective implementation.