Minister urges social aid beneficiaries to join Red-White cooperatives

Jakarta (ANTARA) - The Ministry of Social Affairs has encouraged social assistance beneficiaries to become members of and business operators at Red and White Village Cooperatives (KDKMP).

"The Ministry of Social Affairs also encourages (social aid) beneficiaries to become active members of KDKMP," he said in a statement received here on Thursday.

In addition to promoting membership, the ministry said it supports the economic empowerment of beneficiaries through the co-ops. Beneficiaries are expected to market or sell their products through KDKMPs.

"As part of our empowerment efforts, we hope beneficiaries will be able to sell their products through KDKMP," he said.

The ministry is also exploring the possibility of channeling social assistance through KDKMP in the future, allowing beneficiaries to withdraw assistance funds and purchase daily necessities through the cooperatives.

According to him, social assistance programs that could potentially be distributed through KDKMP include the Non-Cash Food Assistance (BPNT) program and the Family Hope Program (PKH), which have so far been disbursed through cash transfer mechanisms.

He said the ministry has been conducting pilot projects in several locations in collaboration with the Ministry of Cooperatives.

Banking services provided by the Association of State-Owned Banks (Himbara) at KDKMP are among the supporting factors that could enable social assistance to be distributed through the cooperatives.

"Pilot projects are currently underway in several locations. Hopefully, once everything is ready, including the infrastructure, human resources, and commodities, KDKMPs will be able to operate effectively," he remarked.

He added that the distribution of social assistance through KDKMP will be implemented gradually, taking into account the readiness of infrastructure and field operations.

"This way, people will have easier access to withdraw their assistance funds or purchase goods directly at the Red and White Cooperatives," he said.

The Red and White Village Cooperatives (KDKMP), initiated under President Prabowo Subianto's administration, are designed to serve as local economic hubs that stimulate rural economies, bolster village self-reliance, and accelerate grassroots poverty alleviation.

These co-ops are established to help expand micro, small, and medium enterprise (MSME) markets and function as savings and loan entities that offer affordable financing.

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Translator: Lintang, Kenzu

Editor: Azis Kurmala

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