Memo Kopdes Series #2 – CELIOS
Kopdes MP in Turmoil (Again): From “Divine Inspiration” to Public Policy, from (Claiming to Be) a Cooperative to Competing with MSMEs
Key Findings:
- Kopdes MP Lacks Policy Urgency
Indonesia already has 139,203 cooperatives, yet the government has chosen to establish 83,259 new Village Cooperatives (Kopdes MP) instead of strengthening existing ones.
- Fiscal Risks Shifted to the State Budget
The program’s financing could reach IDR 240 trillion (up to IDR 3 billion per Kopdes MP outlet). If these businesses fail, the burden will ultimately fall on the state budget (APBN).
- Not a Village Supply Chain Hub
Total transactions have reached only IDR 179.45 billion, largely driven by SPHP rice, subsidized fertilizer, LPG, and grocery products. What is expanding is the distribution of government subsidies—not value creation in the village economy.
- Implementation Before Regulation
A total of 70,176 transactions have already taken place, yet the Presidential Regulation on governance has still not been issued.
- A Competitor to Local Micro Retailers
There are already 19,245 Kopdes outlets in operation—equivalent to 1.8 times Indonesia’s annual increase in retail MSMEs.
