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Indonesia readies social aid scheme through village cooperatives

Jakarta (ANTARA) – The Ministry of Social Affairs is preparing a regulatory framework and implementation schemes to support plans for integrating social assistance and welfare initiatives with the Red and White Village Cooperatives (KDMP) program.Minister Saifullah Yusuf said his office is working on mechanisms to enable village cooperatives to improve public access to improve access to government welfare initiatives, such as the Family Hope Program (PKH).He made the statement after attending an event marking the 59th anniversary of the Indonesian National Council for Social Welfare in Jakarta on Friday.Yusuf noted that the ministry is considering two options for channeling aid: through state-run banks operating dedicated service points at KDMPs or by disbursing aid directly into cooperative bank accounts.He added that several qualified cooperatives would take part in a pilot simulation using the first option in collaboration with state banks BRI and BNI.Regarding whether village cooperatives could start channeling PKH aid for the third quarter, the minister said distribution would continue through direct transfers to recipients’ accounts as usual, since no definitive schemes have been decided.He also assured the public that social aid distribution would remain targeted, emphasizing that cooperative operators would have no authority to alter beneficiary data, as verification is conducted automatically through the ministry’s system.Cooperatives Minister Ferry Juliantono had previously confirmed that village cooperatives would play a role beyond absorbing and marketing local produce, highlighting their function in distributing subsidized goods and expanding access to social welfare programs.He said in Cimahi, West Java, on July 17 that the government intends KDMPs to help broaden the reach of direct cash assistance, social aid, and non-cash food programs while improving access to subsidized products such as 3-kg LPG cylinders, fertilizer, rice, and cooking oil.The approach, he added, is aimed at simplifying distribution chains and reducing risk of inaccuracies in the delivery of welfare programs.“This is a decision that will determine the direction of our economic system and practice,” Juliantono said.