Indonesian Minister Defends Village Cooperatives Against Minimarket Competition Claims

Indonesian Minister Zulkifli Hasan pushed back against student criticism that the Village Cooperatives Merah Putih (KDMP) cannot compete with convenience stores and local "warung Madura." Speaking at a student executive body meeting in Semarang, Hasan emphasized that the KDMP is not a supermarket but rather a piece of government infrastructure.

A student from Universitas Islam Sultan Agung had expressed doubt, believing the cooperatives would struggle against established minimarkets and even local "warung Madura," which she argued are more profitable. This sentiment reflects a broader misunderstanding of the KDMP's purpose, according to Hasan.

"Many people misunderstand the KDMP," Hasan stated. He explained that the government often faces online criticism when discussing the cooperatives. He highlighted that a key function of the KDMP will be to distribute government-subsidized goods. Citing the National Economic Council, Hasan noted that an estimated 70 percent of subsidized goods and government aid do not reach their intended recipients, suggesting the KDMP aims to rectify this.

The distribution of 50 operational pickup trucks to 50 KDMP units in Blitar, East Java, was mentioned as part of the initial phase, with a total of 269 units planned for the region. This logistical rollout underscores the government's commitment to establishing the cooperative network.