Prabowo Stresses Subsidised Goods Not for Trade, to Be Distributed via Kopdes Merah Putih

President Prabowo Subianto has stressed that goods receiving government subsidies must not be traded. The distribution of subsidised goods will henceforth be carried out through the Kopdes Merah Putih (Village/Sub-district Cooperatives).

Prabowo stated that the policy is part of the government’s effort to strengthen the people’s position in the supply chain. According to him, subsidies come from the people’s money, so the benefits must return to the people.

“All subsidised goods will be distributed through the Kopdes Merah Putih, so subsidised goods cannot and must not be traded,” Prabowo said during the Annual Session of the MPR and the Joint Session of the DPR-DPD in Jakarta on Friday (14/8/2026).

Prabowo emphasised that subsidised goods are not commodities to be bought and sold. “Subsidies are the people’s money. Subsidised goods are subsidised by the people’s money for the people, and are not merchandise,” he asserted.

According to Prabowo, distribution through cooperatives is also linked to the government’s effort to control the supply chain. He considers that market mechanisms remain necessary in the economy, but they must not be exploited by large capital holders to the detriment of the public.

“We are not anti-market. We cannot be anti-market. The economy is based on the movement of the market. But the market can be manipulated, the market can be damaged, the market can be controlled by those who control large capital,” Prabowo said.

Therefore, the government will strengthen cooperatives as a vehicle for the people’s economy. Prabowo mentioned that there are currently 10,000 Kopdes Merah Putih established and operating, with 3,300 of them already operating optimally. The government is targeting 30,000 Kopdes Merah Putih to be established and operating well by the end of 2026.

Prabowo said the existence of these cooperatives is expected to give the state stronger control over the supply chain, so that the public is not easily manipulated by parties that control trade.