Merah Putih cooperatives expand business operations in Indonesia

Merah Putih cooperatives (KDKMP/KDMP) in Indonesia are diversifying their business models to increase revenue. In Blitar, 13 out of 21 cooperatives are currently operational, with daily turnovers ranging from Rp50,000 to Rp300,000. However, sales of subsidized goods such as LPG, Minyakita, and SPHP rice can drive daily turnover above Rp1 million.

In Pasuruan, the KDMP Wonokerto cooperative has expanded from retail outlets into agriculture by leasing 2.5 hectares of land for an avocado mango orchard. This expansion responds to high consumer demand at their minimarkets. During harvest seasons, the orchard generates daily revenues between Rp2 million and Rp2.6 million, contributing an estimated gross monthly income of approximately Rp64 million.