RRI.CO.ID, Jakarta – The Red and White Village Cooperatives will focus on two main roles. Indonesia’s Coordinating Minister for Food, Zulkifli Hasan, made the statement at the Presidential Palace in Jakarta on Wednesday, July 15, 2026, after attending a meeting with Indonesian President Prabowo Subianto and members of the Red and White Cabinet.

In addition to distributing social aid and subsidized goods, the Village Cooperatives will also act as off-takers or standby buyers for Indonesian farm produce. “The Red and White Village Cooperative is the government’s infrastructure, that’s point one. What is it? What kind of infrastructure? It’s for distributing aid, social assistance, and subsidized goods, all of which will go through the Red and White Village Cooperative. That decision was made already. Second, the Village Cooperative will serve as an off-taker,” he said.

Besides, the Minister clarified that the Village Cooperatives were different in terms of concept from modern retail stores or supermarkets. He made these points in a press statement

He said, “Many people misunderstand village cooperatives, thinking they’re something like supermarkets. In reality, cooperatives, including village cooperatives, are government infrastructure, and they also serve as off-takers.”

Regarding its role as an off-taker, Minister Zulkifli explained that the Village Cooperative will purchase agricultural produce if market prices fall below the price set by the government. In the initial phase, this policy will first apply to grain and corn.

“If the prices of commodities such as grain, corn, and others fall below the prices set by the government, then the cooperative can act as an off-taker, that is, a buyer, of agricultural products whose prices have been set by the government,” he stated.

Meanwhile, Indonesia's Minister of Villages and Disadvantaged Regions, Yandri Susanto, added that the Village Cooperative is expected to provide tangible benefits to rural communities. According to him, the profits earned by the cooperatives will be shared with the community and help boost village revenues.