Prabowo Addresses Criticisms and Future Vision for Village Cooperatives

President Prabowo has explained the current situation and future vision for the recently criticized village/neighborhood cooperative, "Kopdes Merah Putih." The President acknowledged that many challenges exist as the program has only been operational for approximately one and a half months. Specifically, issues such as inadequate electricity, water supply, and internet connectivity have been pointed out. However, the President expressed his determination to improve the operations of Kopdes Merah Putih in the future. Plans include developing facilities such as warehouses, cold storage, transport trucks, pharmacies selling affordable generic drugs, and agricultural machinery repair shops, as well as functioning as a distribution hub for subsidized goods. The President stated, "For the first time in the history of the Republic of Indonesia, the government will have a channel, a grip on the supply chain, retail chain, from the center to the village." He emphasized that this would prevent shortages and hoarding of goods, especially during critical periods. Initially, the establishment of Kopdes Merah Putih aimed to eliminate usurers who had long exploited Indonesian farmers. However, in the process, it became apparent that hundreds of trillions of rupiah could be saved across the entire supply chain. According to the President, in the traditional distribution channels, there were five intermediaries from farmers to consumers, capturing profits of 30-40%. This left only about 30% of the profits for farmers and consumers. President Prabowo explained that by limiting the profits of middlemen to 5-10% within Kopdes Merah Putih, both farmers and consumers would be able to enjoy larger profits. This is expected to stimulate the national economy, with one rupiah circulating creating an economic impact of two to four times. Specifically, it is calculated that at least Rp 500-600 trillion would circulate among the people. Source: Detik