Indonesia plans revenue-based pay for village cooperative employees

Jakarta (ANTARA) - Cooperatives Minister Ferry Juliantono unveiled the government's plan to set wage levels for non-managerial employees under the Red and White Village Cooperatives (KDMP) program based on each cooperative's revenue capacity.

"Regarding [the salaries of employees], our hope is that they can be derived from business earnings," he told reporters at the Parliament Complex in Jakarta on Wednesday.

Juliantono made the statement in response to reports of delayed payrolls and unsatisfactory wages, an issue that has circulated widely on social media.

The minister also drew attention to salary standards for KDMP managers, noting that discussions are ongoing with the Finance Ministry.

On the same occasion, Deputy Cooperatives Minister Farida Farichah conveyed similar remarks, confirming the revenue-based approach to determining cooperative employee salaries.

She added that technical provisions regarding pay would be handled by PT Agrinas Pangan Nusantara, the state-run food company assigned to construct key operational facilities for village cooperatives, such as warehouses, grocery stores, clinics, and management offices.

Farichah explained that the approach is favored because the national program remains in the early stage of cooperative operations.

She underscored that the company holds the authority to arrange matters related to cooperative operations.

"However, the monitoring and oversight responsibilities fall to the Ministry of Cooperatives," she added.

The proposed payroll model has been implemented by KDMP Bentangan in Klaten District, Central Java.

Cooperative head Bambang Gunarsa said the business employs two workers, each receiving a monthly salary of Rp1.5 million (around US$92), with wages adjusted to earnings.

"Praise be to God, our village cooperative has been able to pay salaries over the past 12 months," he told ANTARA when contacted last week.

Thousands of cooperatives are still under construction nationwide by Agrinas in collaboration with the military. Nearly 16,000 cooperatives had completed construction as of early July, with the government aiming to start operating 40,000 units by the end of 2026.

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Translator: Shofi Ayudiana, Tegar Nurfitra

Editor: Arie Novarina

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