Prabowo Mandates All Subsidised Goods Be Distributed Through Village Cooperatives

President Prabowo Subianto has stipulated that all subsidised goods must be distributed through the Koperasi Desa/Kelurahan Merah Putih (KDMP) village cooperatives. The goods include fertiliser and LPG. “Almost all subsidised goods can be distributed through the cooperatives to prevent misappropriation, because many subsidised goods are misappropriated and do not reach the people who need them,” he said during the peak commemoration of the 79th National Cooperative Day in Jakarta on Sunday. According to Prabowo, the distribution of subsidised goods has so far been off-target. This occurs because certain individuals deliberately sabotage the distribution of benefits for personal gain. “(Subsidised goods) are manipulated, even smuggled abroad. That is the background of the Koperasi Desa Merah Putih,” Prabowo stressed. He also affirmed that the KDMP will become an integrated service centre featuring a pharmacy selling affordable generic medicines, as well as cold storage services to help farmers and fishermen store their harvests and catches. On this occasion, he also confirmed that the KDMP will serve as a savings and loan outlet with attractive interest rates. The KDMP will even offer cheap credit, including micro and super micro loans such as MEKAAR. Prabowo pledged that the interest rate for MEKAAR loans, which previously reached 22 percent, will be reduced to 8 percent. Prabowo admitted that he actually wanted the MEKAAR loan interest rate to drop to 5 percent. “I want 5 percent, but the bankers, Rosan and the others, said ‘Sir, don’t make it too thin, we have costs.’ But compared to 22 percent, 8 percent is decent. Isn’t that right!” he explained.