Prabowo: All Subsidised Goods Must Be Distributed Through Village Cooperatives

President Prabowo Subianto has announced that all subsidised goods will be distributed through the Koperasi Desa/Kelurahan Merah Putih (KDKMP). He therefore intends to build a KDKMP in every village and sub-district across Indonesia. Prabowo noted that the number of villages and sub-districts in Indonesia reaches approximately 81,000, and he is targeting the construction of 81,000 KDKMP so that a cooperative is available in every village and sub-district. ‘Ladies and gentlemen, I have decided that all subsidised goods must be distributed to the people through the Koperasi Desa Merah Putih,’ he said during his speech at the peak of the 79th Cooperative Day commemoration at the Indonesia Arena, Senayan, Jakarta, on Sunday (12/7/2026). According to him, many subsidised goods have been misappropriated, even though these goods are intended for the people who truly need them. Prabowo cited examples such as subsidised fertiliser and subsidised gas cylinders, stating that with the KDKMP, residents will easily obtain these goods without misappropriation. ‘Because many subsidised goods are misappropriated, they do not reach the people who need them, but are manipulated. Many are even smuggled abroad,’ he said. Prabowo reported that 12,000 KDKMP have already been formed, and of that number, around 1,000 are already operational. He added that 5,000 more KDKMP will be operational in the near future. He explained that the cooperatives will also be used for savings and loan activities, where residents can borrow funds with an interest rate of only 8 percent. ‘KDKMP will become an integrated village economic service centre. Inside, there will be a cooperative office, a basic goods shop, savings and loan services, and a village pharmacy,’ he said. The government will also establish cooperatives for fishermen, which will facilitate their needs, ranging from cold storage to large vessels, making it easier for fishermen to manage their catch. ‘We project that KDKMP can improve people’s welfare. Every year, Rp 223 trillion will circulate in the villages. It will not flow out, but will circulate in the villages. Producer incomes for farmers, livestock breeders, and fishermen will also increase by Rp 202 trillion,’ Prabowo said.