Prabowo: Merah Putih Village Cooperatives Could Generate Rp223 Trillion in Circulation

President Prabowo Subianto has revealed that his administration estimates the Merah Putih Village/Sub-district Cooperatives (KDKMP) could create economic circulation of up to Rp223 trillion. He made this statement during the Peak Commemoration of the 79th National Cooperative Day in 2026, Sunday (12/7/2026).

Meanwhile, he calculated that the income of producers, including farmers, livestock breeders, and fishermen, would also increase by up to Rp222 trillion.

“We project that KDKMP can bring prosperity. Rp223 trillion will circulate in the villages, it will not leave, it will circulate in the villages. Later, there will be producer income which will also increase by Rp222 trillion for farmers, livestock breeders, and fishermen,” he explained.

The government is targeting the phased inauguration and operation of tens of thousands of KDKMP starting in August 2026. Prabowo expressed his hope that the cooperatives could run well, stating that it is not necessary to have tens of thousands or even ten thousand. He has no issue if only 5,000 are established, as long as they can grow and operate properly.

On this occasion, he also confirmed that KDKMP will eventually become savings and loan outlets with attractive interest rates. In fact, KDKMP will offer cheap credit, including micro and super micro credit such as MEKAAR.

Prabowo pledged that the MEKAAR credit, which previously had an interest rate of up to 22%, would be lowered to 8%. Prabowo admitted that he actually wanted the MEKAAR credit interest rate to drop to 5%.

“I want 5%, but the bankers, Rosan and the team, said ‘Sir, don’t make it too thin, we have costs.’ But compared to 22%, 8% is quite good. Right!” he explained.

He further asserted that KDKMP 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 marine catches.

Additionally, he stipulated that subsidised goods will also be sold through KDKMP, such as 3 kg LPG canisters and cooking oil.