Jakarta, March 3 -- The Indonesian government plans to establish cooperatives in every village to absorb local agricultural products and shorten the distribution chain to consumers.

Coordinating Minister for Food Zulkifli Hasan said the budget for the so-called Red and White cooperatives will come from the existing village funds of Rp1 billion (nearly US$61,000) allocated to each village annually.

Following a limited meeting led by President Prabowo Subianto on Monday, Hasan stated that up to 80,000 villages nationwide will set up these cooperatives.

Each village, he added, will require a budget of Rp3 billion to Rp5 billion for the construction and development of the cooperatives.

Hasan noted that the State Bank Association (Himbara)...