Mendes PDT: 20 Percent of Village Cooperative Profits to Become Village Revenue

Indonesia's Minister of Villages, Development of Disadvantaged Regions, and Transmigration (Mendes PDT), Yandri Susanto, has announced a new policy allocating 20% of profits from the Merah Putih Village Cooperatives (KDKMP) to become Village Original Revenue (PADes). This initiative aims to bolster village economies and ensure that successful cooperative programs provide direct financial benefits to local governments.

The policy was revealed following a limited meeting at the Presidential Palace, chaired by President Prabowo Subianto. The meeting focused on two key agendas: the KDKMP and a free nutritious meal program. Minister Yandri emphasized that the village governments have a significant stake in the KDKMP's success, as the profit-sharing mechanism offers a positive impact on village finances. The remaining 80% of the profits will be distributed among the villagers.

Minister Yandri explained that the KDKMP is designed to strengthen the rural economy, maximizing the use of Village Funds (Dana Desa) based on each village's unique potential. He highlighted that with 75,266 villages across Indonesia, each possessing distinct strengths, the KDKMP will collaborate with Village-Owned Enterprises (BUMDes) to ensure that village products align with their respective potentials and benefit the local population.

The ministry has been developing thematic villages specializing in specific sectors, such as corn, rice, tilapia, catfish, and chocolate production. The Merah Putih Village Cooperatives will act as offtakers for these products, working in tandem with BUMDes to facilitate their distribution and sale, thereby further enhancing the economic viability of these specialized villages.