Indonesia’s Red and White Village Cooperatives will be acting as off-takers of grains, such as corn, as the initial phase of the cooperatives’ role in purchasing agricultural produce if market prices fall below the price set by the government.
This information was revealed by Coordinating Minister for Food, Zulkifli Hasan, at the Presidential Palace in Jakarta recently.
Besides distributing social aid and subsidized goods, he stated that the cooperatives will be acting as off-takers or standby buyers for Indonesian farm produce.
“Many people misunderstand the cooperatives, thinking they’re something like supermarkets. In reality, the cooperatives are government infrastructure, and they also serve as off-takers,” he explained.
Yandri Susanto, Minister of Villages, Development of Disadvantaged Regions and Transmigration, added that the cooperatives are expected to provide tangible benefits to rural communities.
According to him, the profits earned by the cooperatives will be shared with the community and help boost village revenues.