Govt Mandates Village Cooperatives to Absorb All Local Products Nationwide

KBRN, Jakarta: Secretary of the Ind onesianMinistry of Cooperatives Ahmad Zabadi announced a major economic shift on Sunday, December 28, 2025, mandating that all local goods be absorbed by the Red and White Village/Subdistrict Cooperatives (Kopdes/Kel Merah Putih). 

Speaking from Jakarta, Zabadi explained that commodities like chili, rice, and fish will now be channeled through cold storage and modern processing facilities to empower rural producers. By positioning these cooperatives as industrial aggregators, the government aims to eliminate dependence on imports and protect local communities from the price manipulation of middlemen.

"All local products must be absorbed by cooperatives. Chili harvests, rice, and even fish will enter cold storage, followed by special processing before entering modern markets or being exported," siad Zabadi in a press release in Jakarta on Sunday, December 28, 2025, as quoted by Antara.

According to Zabadi, Kopdes Merah Putih serves as an aggregator for micro and ultra-micro products. He stressed that village cooperatives must become part of an industrialization ecosystem by modernly processing, packaging, and marketing local goods to provide added value for rural communities.

Zabadi added that Kopdes Merah Putih encourages local entrepreneurs to engage in mass production for daily basic needs to reduce dependence on imported goods. Beyond absorbing local products, he noted that village cooperatives ensure public access to subsidized goods such as Liquefied Petroleum Gas (LPG), rice, and medicine at official government prices.

According to him, the prices of strategic commodities have frequently been manipulated by middlemen, which ultimately harms the community. Furthermore, he mentioned that cooperatives provide a solution for fishermen and farmers who face limitations in accessing subsidized fuel and fertilizers.

With these cooperatives in place, he ensured that fishermen can purchase diesel at the official price of IDR 6,800 (USD 0,41) per liter and farmers can obtain fertilizer at government-set rates. Zabadi also emphasized that Kopdes Merah Putih is tasked with organizing the Free Nutritious Meal (MBG) program for children using locally sourced raw materials.

According to him, village cooperatives are assigned to consolidate dairy farmers to meet national milk needs, ensuring that village production is the top priority for nutritious food supplies. The Ministry of Cooperatives, alongside sectors like PT Agrinas Pangan Nusantara and the Indonesian Military (TNI), is currently accelerating the construction of outlets and warehouses to ensure full operation by next year. ***

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