Danantara boosts SOE support for village cooperatives - ANTARA News Jawa Timur

Tanimbar, Maluku (ANTARA) - Danantara Indonesia is strengthening coordination among state-owned enterprises to expand services at the Red and White Village Cooperatives, supporting the government's plan to make them integrated hubs for rural commerce, finance and essential goods distribution.

"We will continue improving the system to make it more organized, expand its services and ensure rural communities directly benefit," Chief Operating Officer Dony Oskaria said in a statement on Thursday.

The Red and White Village Cooperatives, known as KDKMP, are being developed as engines of rural economic growth while serving as integrated service centers for local communities.

Through a nationwide cooperative network, KDKMPs are expected to improve distribution of essential commodities, including three-kilogram liquefied petroleum gas cylinders, SPHP rice, MinyaKita cooking oil and subsidized fertilizers.

Beyond distributing essential goods, the cooperatives will provide services including Mekaar microfinance, BRILink banking transactions and logistics through Pos Indonesia, creating broader access to financial and delivery services.

The integrated model is designed to improve access to banking, logistics and basic necessities by bringing multiple public services together under a single rural ecosystem.

To support the initiative, Oskaria met with the presidents directors of Pertamina Patra Niaga, Pupuk Indonesia, PTPN IV, RNI, also known as ID FOOD, Bulog and Agrinas Palma.

He said stronger coordination among state-owned enterprises will help improve cooperative operations and expand the benefits of KDKMP services to more communities across Indonesia.

The government has completed construction of 15,845 KDKMP facilities as of July and plans to begin nationwide operations in August to strengthen village economies.

Indonesia aims to have 40,000 KDKMPs operating by the end of 2026, making the cooperative network a key pillar of its strategy to accelerate village-based economic development.

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