President Prabowo Subianto has officially mandated that all government-subsidized goods must be distributed through the Koperasi Desa/Kelurahan Merah Putih (KDMP) to ensure aid reaches its intended recipients. During a plenary cabinet meeting in Jakarta on July 20, the President emphasized that these subsidized items are public property and strictly prohibited from being traded or sold.
Distribution Strategy for Subsidized Goods
The establishment of the KDMP serves as a central pillar of the Prabowo-Gibran administration’s efforts to reform the national subsidy distribution system. President Prabowo highlighted this directive during the 79th National Cooperative Day (Harkopnas) celebrations on July 12. The administration’s goal is to prevent distribution irregularities that have prevented subsidized goods from reaching the citizens who need them most.
According to the President, the shift toward a cooperative-based model is a mandatory requirement to ensure accountability. By centralizing the flow of goods through village and sub-district cooperatives, the government aims to prevent the diversion of subsidized resources.
Did You Know?
The Koperasi Desa/Kelurahan Merah Putih (KDMP) program is a signature initiative under the Prabowo-Gibran administration, designed to distribute all government-subsidized commodities.
Implementation and Pilot Programs
Minister of Social Affairs Saifullah Yusuf, also known as Gus Ipul, confirmed that the government is preparing to launch pilot tests for this distribution model beginning in August. While the Ministry is currently coordinating with relevant agencies to finalize logistics, officials have not yet confirmed which specific types of assistance, such as non-cash food aid, will be included in the initial rollout.
Gus Ipul noted that the transition to the KDMP system follows recent high-level discussions held at the Presidential Palace on July 15. The government intends for these pilot projects to serve as a testing ground to refine the distribution process before a wider implementation across the country.
Frequently Asked Questions
Who is responsible for distributing government subsidies under the new policy?
All government-subsidized goods are required to be distributed through the Koperasi Desa/Kelurahan Merah Putih (KDMP).

Can subsidized goods be sold by the cooperatives?
No. President Prabowo has explicitly stated that subsidized goods are the property of the people and are strictly prohibited from being traded or sold.
When will the new distribution system begin?
The government plans to begin pilot testing the new distribution model in select locations starting in August.
How will the government monitor these cooperatives to ensure they comply with the new distribution rules?
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