Indonesian Political, Business & Finance News

Prabowo Mandates All Subsidised Goods Be Distributed Through Village Cooperatives

| Source: CNBC Translated from Indonesian | Economy
Prabowo Mandates All Subsidised Goods Be Distributed Through Village Cooperatives
Image: CNBC

President Prabowo Subianto has affirmed that all subsidised goods will be distributed through the Koperasi Desa Merah Putih (Red and White Village Cooperatives). He made this statement during a speech at the MPR Annual Session on Friday (14/8/2026). Consequently, no subsidised goods, including MinyaKita and subsidised rice, may be traded outside the KDMP. “All subsidised goods will be distributed through the Koperasi Desa Merah Putih, so these subsidised goods cannot and must not be traded,” he stated. “Subsidies are the people’s money. Goods subsidised by the people’s money are for the people and are not merchandise,” he continued. This plan was first announced in July. He stipulated that all government-subsidised goods, including social assistance and subsidised products such as fertiliser and gas, must be distributed through the KDMP. To date, Prabowo claims the government has established 10,000 operational cooperatives. “Of these 10,000, 3,300 cooperatives are operating optimally. The rest are in an adjustment period,” he said.

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