Prabowo Targets 2027 for 'Red and White Cooperative' Economic Impact

President Prabowo Subianto of Indonesia has projected that the 'Red and White Village/Neighborhood Cooperative' (KDKMP) program, currently being promoted, will begin to yield economic benefits around 2027. This initiative is designed to shorten distribution chains, thereby lowering the prices of basic necessities and increasing the income of producers. Prabowo stated that KDKMP serves as a node in the supply chain down to the village level. Currently, approximately 6,000 KDKMPs are operational, and the government intends to continue developing and expanding cooperatives across various regions. "And I think this will have an effect in a few months, maybe in 2027, 2028, the end. This is more or less," said Prabowo during the Prabowo Presidential Answering Program on Wednesday, September 16. The President identified the lengthy distribution channels, involving numerous intermediaries between producers and consumers, as a primary cause of high food prices and stagnant producer incomes. He cited an example where agricultural harvests might pass through about five intermediaries before reaching the public, with each link adding a profit margin of 30 to 40 percent, ultimately inflating the final price. By implementing KDKMP, the aim is to reduce the intermediaries to just one, enabling farmers to receive additional income while consumers can purchase goods at more economical prices. "There is an addition for farmers, but consumers are also economical. So this is more or less the core idea," he explained. Prabowo assessed that the development of village-based cooperatives is a component of the government's efforts to strengthen the economy from the bottom up. In addition to KDKMP, the government is also undertaking various programs in sectors such as food, energy, education, housing, downstream industries, and providing free nutritious meals.