Indonesian Minister: Village Cooperatives are Government Infrastructure, Not Supermarkets

Indonesian Minister Zulkifli Hasan, also known as Zulhas, responded to student criticism regarding the Village Cooperatives Merah Putih (KDKMP) initiative, which some argue cannot compete with minimarkets or local 'warung Madura'. Zulhas stressed that KDKMP is not a supermarket but rather part of the government's infrastructure.

During a meeting with the Indonesian Student Executive Body (BEM SI) at the Semarang State Polytechnic on Monday, a student from Universitas Islam Sultan Agung questioned KDKMP's competitiveness. The student expressed doubt that KDKMP could outperform franchised minimarkets or even traditional 'warung Madura' in terms of profitability.

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Friends, the Village Cooperative Merah Putih is not a supermarket. The Village Cooperative Merah Putih is government infrastructure.

In his response, Zulhas claimed that many people misunderstand the purpose of KDKMP. "Friends, the Village Cooperative Merah Putih is not a supermarket. The Village Cooperative Merah Putih is government infrastructure," he stated. He added that explanations about KDKMP often face significant backlash on social media, with "a thousand attacking for every one explanation."

Zulhas highlighted that a key function of KDKMP will be to distribute government-subsidized goods. He cited the National Economic Council, which reported that approximately 70 percent of subsidized goods and government aid do not reach their intended recipients. The KDKMP initiative aims to address this issue by ensuring more efficient and targeted distribution.

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According to the National Economic Council, 70 percent of subsidized goods, government aid, do not reach their intended recipients.