Finance Minister Guarantees 'Red and White' Village Cooperatives Will Be Profitable, Provided There Is No Corruption

Jakarta, VIVA – The Minister of Finance, Purbaya Yudhi Sadewa, has said he is optimistic that the operation of the Merah Putih Village Cooperatives (Kopdes Merah Putih) will certainly be profitable, as long as they are not corrupted.

This follows a cabinet decision that goods receiving government subsidies will only be sold officially through the Kopdes Merah Putih network.

“It has been decided that all subsidised goods will be distributed through Kopdes Merah Putih, and not sold outside of it,” said Purbaya on Friday, 17 July 2026.

“So from that alone, Kopdes Merah Putih should already be guaranteed a profit — as long as it isn’t corrupted, it will be safe,” he said.

President Prabowo had previously conveyed a similar message. The mechanism whereby goods receiving government subsidies are sold only through Kopdes Merah Putih is intended to ensure the subsidies reach the right targets.

“All subsidised goods must be distributed to the people through Kopdes Merah Putih, without exception. Subsidised goods for the people must not be traded (outside the Kopdes), so that those who need them are the ones who receive them,” said Prabowo on Sunday, 12 July 2026.

The President added that Kopdes Merah Putih will also be developed into integrated village economic service centres. These will include cooperative offices, grocery stores, savings and loan services, and village pharmacies.

“We will open pharmacies in villages, stocking generic medicines that are far cheaper than those in city pharmacies,” said the President.

“There will also be village logistics facilities, warehouses, cold storage and refrigerated rooms, so that farmers’ produce does not spoil, along with various other economic services,” he said.