The Ambition Of The Coordinating Minister Wants To Turn Gapoktan Into A Subsidized Fertilizer Distribution Cooperative

Menkop Budi Arie (Photo: Antara)

Minister of Cooperatives (Menkop) Budi Arie Setiadi wants the Association of Farmers Groups (Gapoktan) to transform into a legal entity for cooperatives in distributing subsidized fertilizers throughout Indonesia.

"Because cooperatives are a business entity, while Gapoktan is an NGO or mass organization," Budi said in a statement to the media quoted Friday, November 29.

In the hearing to discuss Gapoktan institutions in the distribution of subsidized fertilizers, Budi Arie explained that the current condition of subsidized fertilizer distribution has been cut far from the factory directly to retailers.

The point, he said, was that there had been changes in the policy of distributing subsidized fertilizers no longer through agents or dealers, but directly to beneficiaries such as Gapoktan.

"Therefore, Gapoktan must immediately take care of the cooperative's legal entity as a prerequisite for distributing fertilizer from producers," said Budi Arie.

He explained that currently, there are around 64,629 Gapoktan throughout Indonesia, and 27,000 kiosks or fertilizer retailers who are already legal entities. Of the number of Gapoktan, it was recorded that around 4000 were already cooperative legal entities. So, there are only around 52,300 Gapoktan that have not become cooperatives.

"In this case, Gapoktan and kiosks or retailers can join forces to establish cooperatives," said Coordinating Minister Budi Arie.

Regarding the piloting steps of subsidized fertilizer distribution cooperatives, Menkop Budi Arie explained, currently his party has a development budget for 500 cooperatives.

"So, we can pilot in 500 Gapoktan which will be pushed to become cooperatives," continued Budi Arie.

In addition, he continued, his party has also collaborated with the Indonesian Accountant Association (IAI) in implementing cooperative financial reporting standards in a simple manner.

"We also have 1200 Cooperative Extensioners such as assistance for Gapoktan later. There are also Bachelors of Cooperatives or SPK, where we need around 9000 SPK," continued Budi.

Meanwhile, Deputy Minister of BUMN Kartika Wirjoatmodjo explained the subsidized fertilizer management business process based on the Draft Presidential Regulation (R-Prepres). It was revealed that Gapoktan can form a cooperative that will be responsible for distributing subsidized fertilizers.

"The cooperative formed by Gapoktan has a strong and clear legal basis, and can increase the role of cooperatives in supporting the Food Security Program," said Kartika.

Therefore, Tiko continued, in order to accelerate the implementation of the Presidential Decree on the Governance of Subsidized Fertilizers to increase Gapoktan capacity, Kemenkop support is needed to accelerate the change in the form of Gapoktan institutions into cooperatives.

His duties, first, technical and administrative assistance related to the Gapoktan institutional change process, include the mass registration of Gapoktan as well as the opening of bank accounts for the operational finance management of Gapoktan cooperatives.

Second, helping to accelerate the legality process and ratification of the Gapoktan cooperative.

"Third, providing training and coaching for administrators and members of cooperatives in Gapoktan," said the Deputy Minister of BUMN.

Kartika hopes that the change in Gapoktan institutions into cooperatives can be completed maximally in April 2025 in line with the transition period timeline listed in the subsidized Pupuk Governance R-Prepres, or six months after being promulgated.