Indonesia Targets 30,000 Merah Putih Cooperatives by August 2026 to Streamline Supply Chain

Indonesia is accelerating the rollout of its Village and Sub-district Merah Putih Cooperatives (KDMP), targeting 30,000 operational units nationwide by August 16, 2026, according to announcements by President Prabowo Subianto and Coordinating Minister for Food Zulkifli Hasan. The initiative is designed to establish an unprecedented national supply chain connecting central distribution networks directly to rural villages to stabilize commodity prices, cut out middlemen, and bolster regional economies.

Nationwide Rollout and Infrastructure Targets

Speaking during a Plenary Cabinet Session at the State Palace in Jakarta, President Prabowo Subianto emphasized that the government is building a direct supply chain from the center down to rural communities for the first time in the history of the republic, as reported by ANTARA News. State planners have set a hard target for 30,000 KDMP units to be fully operational by the end of 2026, coinciding with the momentum of the nation’s 81st Independence Day celebrations in August.

According to data released by the Ministry of Cooperatives, physical construction has reached 15,845 completed units by mid-July, while another 19,539 cooperatives remain under active construction. Coordinating Minister for Food Zulkifli Hasan noted that construction velocity is scaling rapidly, with physical builds increasing by 150 to 200 units daily across various Indonesian regions, supported by provincial pushes such as in South Sumatra, where local officials report 521 out of 3,258 planned units have finished 100 percent of their physical construction.

Supply Chain Integration and Economic Controls

Each completed KDMP facility is outfitted with dedicated infrastructure designed to streamline rural commerce, including storage warehouses, cold storage rooms, transport vehicles, and dedicated commodity outlets. These units are also slated to distribute subsidized goods and generic medicines directly to residents. By shortening distribution lines, the cooperatives aim to shield farmers from exploitative lenders and prevent localized hoarding during off-seasons.

KDMP jadi rantai pasok dari pusat hingga desa ANTARA News

President Prabowo explained that the network will actively control inflation by shifting surplus goods from producing regions directly to areas facing supply deficits. To manage these facilities, the government is currently recruiting 30,000 managers. Ministry figures show that 1,061 units have already cleared operational readiness assessments to function as localized economic hubs ahead of a planned simultaneous launch on August 17, 2026.