Discussing Kopdes, Prabowo Reveals Real Human Oppression in Indonesia

Jakarta, CNBC Indonesia - President Prabowo Subianto has explained the reasons for building the Merah Putih Village Cooperatives. He stated that he is considering the fate of farmers and the poor. Prabowo recounted the difficulties farmers face in accessing financing, leading them to turn to moneylenders with suffocating debt interest rates. As is known, farmers’ incomes align with the harvest season every three months. Meanwhile, during the rice planting period, farmers often encounter significant expenses requiring substantial funds, necessitating borrowing. “Someone reported to me, ‘Sir, it’s hard, sir, we need to improve the fate of the farmers.’ Why? Because farmers harvest only after 120 days, and within those 120 days, sometimes their wife falls ill, so they need to borrow money. Who do they borrow from? From moneylenders on the land. And those moneylenders are terrifying. They charge 1% per day. Can you imagine that?” he said. Not only farmers, but according to Prabowo, the fate of most poor people in Indonesia is also severely hampered by a financing system with exorbitant interest rates. “How can the poor be charged 1% per day? That’s one thing. So now, with the Merah Putih cooperatives, we will provide cheap credit. Cheap credit. I asked, even microcredit is now 24%. The poor at 24%,” Prabowo added. He compared this to the low-interest facilities given to the wealthy, which can create financing disparities. “Sorry, large entrepreneurs and conglomerates get how much? 7%, 8%, at most 9%, 10%, say 12%, the small people 20%, I say no, the Merah Putih cooperative must be below that. If necessary, 6% per year.” Prabowo described this inequality as “oppression of human by human. How can the poor be charged 1% per day?”