JAKARTA - Trade Minister Budi Santoso emphasized that the presence of the Red and White Village/Neighborhood Cooperative (KDMP) is not intended to be a competitor to modern retail such as Alfamart and Indomaret.
Budi's statement was made after meeting with the Minister of Villages, Disadvantaged Regions, and Transmigration Yandri Santoso to discuss the discourse on regulating the expansion of modern retail.
According to Budi, the establishment of the KDMP aims to strengthen the village economy while shortening the distribution chain of goods so that it is easier for the community to reach.
"Yesterday (met), so this is it, so this is it, the village cooperative is indeed the goal is to deceive the economy in the village. So, the village cooperative or village cooperative that already exists in these areas actually wants to be closer to the distribution to consumers in the village, of course," he told the media, Thursday, February 26.
Furthermore, Budi assessed that the existence of village cooperatives actually opened up opportunities for collaboration with modern retail and distributors, because through this scheme, products from minimarkets and distributors can be marketed through village cooperatives, so that a mutually beneficial synergy is created.
"Well, this is actually a good opportunity to collaborate with minimarkets, with distributors, to distribute their products through village cooperatives," he said.
He gave an example that this type of partnership pattern has actually been going on for a long time, for example between modern retail and grocery stores, which to this day still get supplies from large retail distribution networks, so that KDMP is seen as a form of cooperation between the government and the private sector.
"This village cooperative, this practice of collaboration or partnership has also been and often done, until now it is still valid with grocery stores, right? Grocery stores are supplied by modern retail, from distributors, that's the first," he said.
Budi also highlighted a number of advantages of village cooperatives, namely that in addition to being able to operate like a minimarket with a wider variety of products, these cooperatives also have the potential to provide agricultural needs such as fertilizers and medicines.
"He can function as a minimarket with more product variations. For example, if we look at it, KDMP is also selling agricultural tools, there are fertilizers, there are medicines. Well, secondly, KDMP can also function as a pharmacy, as a clinic, and also as an exporter," he explained.
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