Supporting this view, he expressed confidence that such business entities would help shorten the production and distribution chains of essential goods and services.
Susanto made these remarks during an event on preparations for the national program’s implementation in Papua, held at the Office of the Papua Governor in Jayapura City on Monday (June 2).
"Our farmers tend to fall victim to long distribution chains that disproportionately benefit middlemen. This practice often results in losses for rice and chili farmers. Therefore, the village cooperatives program is expected to cut these chains," he noted in a statement cited here on Tuesday.
Related news: RI Govt says village co-ops will help bring down extreme poverty
The minister described the initiative as a step toward building a more stable and equitable economic environment by ensuring fair prices for food commodities at the village level.
"Hopefully, the establishment of Red and White Village Cooperatives in Papua will help reduce price disparities, which are particularly severe in this region," he stated.
He also noted that the government had issued Presidential Decree No. 9 of 2025 to accelerate the formation of Red and White Village Cooperatives.
Susanto further emphasized that these cooperatives could shield rural communities from exploitative middlemen and predatory loan sharks.
"We cannot allow loan sharks to exploit the people with high or daily interest rates, which essentially only cause harm," he stressed.
According to the plan, President Prabowo Subianto will launch Red and White Village Cooperatives nationwide on July 12 this year, coinciding with National Cooperatives Day.
Related news: Prabowo plans village cooperatives as basic necessities' hubs
Translator: Tri M, Tegar Nurfitra
Editor: Rahmad Nasution
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