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

Finance Minister Purbaya Yudhi Sadewa has expressed optimism that the operation of the ‘Red and White’ Village Cooperatives (Kopdes Merah Putih) will definitely be profitable, provided there is no corruption. He explained that, based on a cabinet meeting, it was decided that goods receiving government subsidies will only be officially sold through the Kopdes Merah Putih network. “It has been decided that all subsidised goods will be distributed through Kopdes Merah Putih, and not traded outside of it,” Purbaya said on Friday, 17 July 2026. “So, from that alone, Kopdes Merah Putih should already be guaranteed a profit. As long as there is no corruption, it is safe,” he added. President Prabowo had previously outlined this mechanism, stating that the exclusive distribution of subsidised goods through the cooperatives is intended to ensure subsidies are precisely targeted. “All subsidised goods must be distributed to the people through Kopdes Merah Putih, it is mandatory. The people’s subsidised goods must not be traded outside the cooperative, so that those who need them are the ones who receive them,” Prabowo said on Sunday, 12 July 2026. The President added that Kopdes Merah Putih will also be developed into an integrated village economic service centre. It will house a cooperative office, a basic necessities shop, savings and loan services, and a village pharmacy. “We will open pharmacies in the villages, stocking generic medicines that are much cheaper than those in city pharmacies,” the President said. “There will also be village logistics, a warehouse, and cold storage so that farmers’ produce does not spoil, along with various other economic services,” he added.