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View all search resultsGovernment slows down rollout of cooperatives program
The government has slashed by half its planned rollout of KMP units in October from 80,000 to just 40,000, while the finance minister is adamant that any unnecessary augmentations to the original program will be ditched before implementation.
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Trucks bearing the livery of the Red and White Cooperatives (KMP) program prepare for distribution activities on April 6, 2026, in a parking lot near the Simpang Lima Gumul Monument in Kediri, East Java. (Antara/Prasetia Fauzani)
T
he administration of President Prabowo Subianto has scaled back the rollout of its cooperatives program, dubbed the Red and White Cooperatives (KMP), which now plans to have 40,000 up and running by October.
This is half the original target to have 80,000 KMP units operating nationwide by that month.
"Around 36,000 [cooperatives] have made significant progress, but we are preparing up to 40,000 this year," Coordinating Food Minister Zulkifli Hasan said on Saturday in South Sulawesi, as quoted by news agency Antara.
"The priority is to make sure they operate properly. Next year, we will evaluate progress before deciding on further expansion," Zulkifli added.
The government aimed to complete physical construction by September, he explained, which would allow the cooperatives to begin serving local communities the following month.
The KMP program is one of Prabowo's flagship initiatives to strengthen rural economies by integrating government assistance, agricultural distribution and public services under one institution.
Under the program, cooperatives will serve as distribution centers for state assistance, including social aid through the Family Hope Program (PKH) and agricultural machinery, as well as sell subsidized fertilizers and liquefied petroleum gas.
