The collaboration aims to enable PKH beneficiaries to gain additional income and business opportunities by joining village cooperatives.
During the launch in Purworejo, Central Java, on Saturday, Cooperatives Minister Ferry Juliantono said village cooperatives could serve as strategic instruments to empower PKH beneficiaries, improve living standards, and reduce poverty and extreme poverty.
"This partnership follows an agreement signed by the Social Affairs Ministry and the Cooperatives Ministry recently, aiming to guide social assistance beneficiaries to join village cooperatives. We will use cooperatives as instruments to empower communities," he stated.
As KDMP members, beneficiaries are expected to earn additional income, particularly from cooperative business activities, he added.
Juliantono emphasized that the government envisions village cooperatives not only as distributors of subsidized goods but also as offtakers of commodities produced by local farmers and livestock breeders.
He also called on the Purworejo administration to oversee the operations of village cooperatives, referring to preparations for the inauguration of 30,000 out of more than 80,000 village cooperatives established in July 2025.
On the same occasion, Social Affairs Minister Saifullah Yusuf expressed confidence that the KDMP program would help strengthen poverty alleviation efforts.
He stressed that the ministry is committed to assisting more beneficiaries, particularly those of productive age, to graduate from social assistance programs, noting that government aid is intended as a temporary safety net.
"Families of productive age should remain optimistic and strive to become empowered by joining village cooperatives," Yusuf remarked.
Meanwhile, Head of the Poverty Alleviation Acceleration Agency (BP Taskin) Budiman Sudjatmiko said poverty alleviation requires synergy among ministries and agencies, as it remains a national priority.
"BP Taskin is formulating an anti-inflation approach to government programs to synchronize initiatives across institutions, with the goal of lifting people out of extreme poverty," he added.
Related news: Indonesian govt pushes area-based drive to end extreme poverty
Related news: Indonesia bets on free meals to combat poverty, stunting: Prabowo
Translator: Heru S, Tegar Nurfitra
Editor: Anton Santoso
Copyright © ANTARA 2026
