Prabowo Mandates All Subsidised Goods Be Distributed Through Village Cooperatives

President Prabowo Subianto has decided that all subsidised goods from the government must be distributed through the ‘Merah Putih’ Village Cooperatives (Kopdes). The policy was taken to ensure government aid is precisely targeted.

“I have made the decision, all subsidised goods must be distributed to the people through the Merah Putih Village Cooperatives, it is mandatory. Subsidised goods must not be traded by the people. So that those who need them are the ones who receive them,” Prabowo said during a speech at the peak celebration of the 79th National Cooperative Day in Indonesia Arena, Gelora Bung Karno, Jakarta, Sunday (12/7/2026).

According to Prabowo, the Merah Putih Village Cooperatives will not only function as distributors of subsidised goods but will also be developed into integrated economic service centres at the village level. These centres will include cooperative offices, basic food shops, savings and loan services, and village pharmacies.

“We will open pharmacies in the villages, the medicines will be generic and much cheaper than those in city pharmacies. There will be village logistics, warehouses, and cold storage so that farmers’ produce does not spoil,” he said.

Prabowo also stated that the government will establish fishermen’s cooperatives in various regions. Through these cooperatives, fishermen will gain access to facilities such as cold storage warehouses, ice factories, and large fishing vessels. He clarified that these are not free gifts but loans that fishermen will repay in instalments from their catch proceeds.

“The money in the fishermen’s villages, the money in these villages, the cooperatives’ money is loan money that will be repaid,” he said.

Prabowo asserted that the Kopdes Merah Putih programme will improve the welfare of rural communities. He projected that the money circulation in villages will reach Rp 223 trillion annually. Additionally, the income of farmers, livestock breeders, and fishermen is projected to increase by up to Rp 202 trillion.

“We project that KDKMP can improve people’s welfare. Rp 223 trillion will circulate in the villages every year. It will not leave, it will circulate in the villages. Later, producer income will also increase by Rp 202 trillion for farmers, breeders, and fishermen,” he concluded.