Minister of Cooperatives, Ferry Juliantono, has sought crucial backing from Commission VI of the House of Representatives (DPR) to galvanize State-Owned Enterprises (SOEs) into producing processed food. This initiative is deemed pivotal for establishing a robust ecosystem for the Kopdes Merah Putih (Red and White Village Cooperatives) before its anticipated full operation in March-April 2026.
Ferry highlighted that, currently, the production of processed food remains predominantly the domain of the private sector. He firmly believes that the operationalization of Kopdes Merah Putih could serve as a powerful catalyst, encouraging state-owned companies to strategically enter and thrive within the processed food manufacturing landscape.
During a working meeting with DPR Commission VI on Tuesday, November 18, Ferry elaborated on the proposed division of labor. “Agrinas will concentrate on post-harvest activities such as cold chains, storage, and drying racks. Concurrently, ID Food will commence producing condiments like soy sauce or chili sauce, thereby nurturing a complete ecosystem for KDMP (Kopdes Merah Putih),” Ferry explained, underscoring the integrated approach.
Ferry estimates that the construction of new processed food factories could be completed within six months, aligning with the March-April 2026 timeframe for full operation. This strategic move, he asserted, would effectively integrate Kopdes Merah Putih into the broader production and industrial sectors, enhancing its scope beyond mere distribution.
Despite these ambitious production goals, Ferry reaffirmed that the fundamental objective behind the establishment of Kopdes Merah Putih is to significantly streamline the distribution chain at the village level. By operating its own food outlets, these cooperatives are set to drastically shorten the path from producers to consumers within rural communities.
Echoing this sentiment, Minister of Agriculture Amran Sulaiman previously expressed strong optimism regarding the ability of Koperasi Desa Merah Putih to revolutionize the food supply chain. He posited that this critical intervention could boost the public’s purchasing power for essential food items by an impressive margin of up to 50 percent.
Amran further illustrated that the national food supply chain typically involves eight distinct points. He projected that the optimal implementation of KDMP would prune this lengthy chain down to just three crucial points: farmers, KDMP, and the end consumers. This simplification promises greater efficiency and reduced costs for all involved.
“For instance, communities who can currently afford only one kilogram of rice will soon be able to purchase 1.5 kilograms,” Amran stated at the Ministry of Agriculture office on Monday, October 13, providing a tangible example of the expected benefit. This increased accessibility and affordability are central to the cooperative’s mission.
Amran’s analysis also revealed that the cumulative profits enjoyed by various intermediaries across the current eight-point food supply chain amount to a staggering IDR 313 trillion. He confidently estimated that by integrating Koperasi Desa Merah Putih into the food supply chain, this figure could be dramatically reduced to a mere IDR 50 trillion, redirecting significant value back to producers and consumers alike.
Summary
Minister of Cooperatives, Ferry Juliantono, has urged Commission VI of the House of Representatives to involve State-Owned Enterprises (SOEs) in processed food production. This move is crucial for establishing an ecosystem for Kopdes Merah Putih (KDMP) before its full operation in March-April 2026, with Agrinas focusing on post-harvest activities and ID Food producing condiments.
The primary goal of KDMP is to streamline the food distribution chain at the village level, reducing intermediary points from eight to three (farmers, KDMP, consumers). This is projected to boost public purchasing power by up to 50 percent and significantly cut cumulative intermediary profits from IDR 313 trillion to IDR 50 trillion.
