Speaking during a plenary cabinet meeting at the State Palace in Jakarta on Monday, the president noted that his administration targets having 30,000 Red and White Village Cooperatives operational by the end of 2026.
"For the first time in the history of the Republic of Indonesia, the government will have a supply chain running from the center all the way to the villages," Prabowo remarked.
According to him, the cooperatives will streamline the distribution of agricultural produce, prevent commodity hoarding during specific periods, and support inflation control by moving goods from surplus regions to areas in need.
He noted that each village cooperative will be equipped with supporting facilities, including warehouses, cold storage rooms, transport vehicles, and commodity outlets. Among the goods sold are generic medicines and government-subsidized goods.
The president expressed hope that the initiative could reduce farmers' dependence on loan sharks by shortening the distribution chain, allowing agricultural produce to be marketed more directly to consumers.
Earlier, President Prabowo revealed that the idea of establishing the Red and White Village Cooperatives had been on his mind for decades, dating back to his time as a military officer stationed in rural areas.
Speaking at the 79th National Cooperative Day commemoration event in Jakarta on Sunday (July 12), the president said his experience living among villagers inspired the concept of strengthening cooperatives as a vital tool for empowering the grass-roots economy.
According to data from the Ministry of Cooperatives, as of mid-July 2026, construction work for 15,845 Red and White Village Cooperatives has been completed, while 19,539 others are still in the process.
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Translator: Prisca Triferna, Raka Adji
Editor: Azis Kurmala
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