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Agriculture Minister Projects Village Co-ops Could Earn Rp 50 Trillion, Replacing Middlemen

By Admin 1 Kamis, 05 Juni 2025 Pengunjung (100) 1 Mins Read
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Inp.polri.go.id - Jakarta. Minister of Agriculture Andi Amran Sulaiman has projected that Koperasi Desa/Kelurahan Merah Puth (Kopdes) village  cooperatives could generate up to Rp 50 trillion in annual profits by replacing traditional middlemen, known locally as tengkulak, in the rice distribution chain.

“If Kopdes assumes the intermediary role in grain absorption, up to Rp 263 trillion of the total distribution value could be redirected to benefit farmers and consumers directly,” he said on Wednesday (4/6/2025), as quoted by antaranews.com.

Minister Amran criticized the large income gap between farmers and middlemen, noting that while farmers often earn just Rp 1 tp Rp 1.5 million per month, middlemen profit significantly from price margins—up to Rp 42 trillion by May 2025 alone from a Rp 2,000/kg spread in grain prices.

The Ministry’s strategy centers on streamlining the supply chain, reducing the stages from eight to just three: from farmers to co-ops, and then to consumers. Kopdes is expected to both increase farmer incomes and lower consumer prices.

President Prabowo Subianto has backed the initiative with policy support, including higher government purchase prices (HPP), increased subsidized fertilizer, improved irrigation, and technical assistance for farmers.

(mg/inp/pr/rs)

 

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