Jakarta, ThedailyID — Indonesia’s Ministry of Cooperatives projects that Merah Putih Village and Urban Village Cooperatives could help households save Rp200,000 to Rp300,000 per month. The estimated savings would come from distributing subsidized goods through the cooperatives.
Cooperatives will distribute essential commodities, including 3-kilogram LPG cylinders, SPHP rice, Minyakita cooking oil, and fertilizer. The government aims to ensure eligible residents can access these goods at prices set under its subsidy policies.
Cooperatives Secretary Ahmad Zabadi outlined the projection during the 34th graduation ceremony at Nusa Bangsa University in Bogor on Saturday, October 17, according to Antara. The ministry shared the statement on Sunday, October 18, 2026.
Beyond distributing subsidized goods, the cooperatives are also expected to strengthen local economies. They could act as offtakers, buying agricultural products, fishery goods, and other products from village businesses.
This role could give local producers greater certainty over market access and prices. Zabadi said cooperatives should also absorb commodities when market prices come under pressure. For example, they could buy rice when harvest prices fall below government-set levels.
The ministry also envisions the cooperatives as local distribution infrastructure for government programs. These could include food assistance, financing services, and agricultural machinery.
According to the ministry, a local cooperative network could improve the delivery of government programs while expanding access to essential goods and economic services.
The initiative could also generate significant employment. Zabadi estimated that the program could create between 1 million and 1.5 million jobs if more than 83,000 cooperatives each employ an average of 10 to 17 workers.
He also encouraged universities and graduates to contribute through research, innovation, and the development of stronger business models tailored to local communities.
