“One of the core principles behind the establishment of Kopdes (KDMPs) is to shorten the excessively long distribution chain, which usually involves eight links and results in high goods prices,” he informed while inspecting the Merah Putih Tegal Harum Cooperative in West Denpasar, Denpasar city, Bali, on Friday
According to Setiadi, the current distribution chain for essential goods is complex, which causes prices to inflate. With the launch of KDMPs, the distribution chain has been reduced to just three stages: from producers to distributors, and finally, to consumers or the community.
With the establishment of the KDMPs, he noted, the prices of necessities such as LPG have become more affordable.
Therefore, the minister emphasized that the prices of goods sold at Kopdes must be lower than those offered by other businesses.
The former minister of communication and information added that these low prices are not intended to out-compete other retail and modern businesses, but to fulfill the principle of justice for the Indonesian people.
“This is not about competition; it’s about realizing fairness. This is a people’s business, owned by the community. So, it is by the people, from the people, and for the people. So, there is no need for competition,” he said.
Furthermore, the KDMPs also aim to curb inflation, stimulate the economy, and fulfill the vision of the nation’s founders.
“One of the reasons this cooperative was established is to help suppress inflation. The noble goal of the KDMP is to fulfill the mandate of our Constitution, the hopes, dreams, ideals of our founding fathers for cooperatives to be the engine of the economy and a business model that aligns with Indonesia’s identity,” he added.
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Translator: Yoanita Hastryka Djohan
Editor: M Razi Rahman
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