“It is important for all village cooperatives to meet the predetermined business units (requirement), especially since President Prabowo Subianto will soon launch the KMP program this year on July 19 (2025),” he added in Pangkalpinang City, Bangka Belitung Islands Province, on Friday.
He noted that the president has made it mandatory for all village cooperatives to offer liquefied petroleum gas (LPG), fertilizers, basic necessities, savings and loan services, limited banking services, pharmaceutical products, health services, and storage services.
According to Susanto, the cooperatives are set to receive LPG and fertilizers directly from state-run oil and gas giant Pertamina and state fertilizer producer PT Pupuk Indonesia, respectively, to simplify the distribution chain for residents.
Drawing attention to financial services, the minister underlined that the government intends them to serve as a means to protect rural residents from predatory loans.
“Mr. President Prabowo Subianto wants to ensure that rural residents have access to top-notch services, can break free from poverty, and avoid loan sharks,” he said.
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Once a cooperative establishes the eight mandatory business units, it will be eligible to run other activities, such as plantation and agriculture businesses, he informed.
Earlier, the Ministry of Cooperatives announced that around 80,400 KMPs have been established across 38 provinces as of Monday (June 30), with 92 serving as pilot models.
Speaking in Jakarta on Tuesday, Cooperatives Minister Budi Arie Setiadi highlighted that President Prabowo is targeting to start operations at all cooperatives by the end of this year.
“Since the cooperative establishment phase has been completed, we are now moving into the second phase, which focuses on initiating business activities,” he added.
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Translator: Aprionis, Tegar Nurfitra
Editor: Rahmad Nasution
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