Prabowo: Village Cooperatives to Break Farmers' Dependence on Moneylenders
President Prabowo Subianto is promoting the acceleration of village cooperative establishments as a solution to break farmers’ dependence on high-interest loans from moneylenders. The programme is described as part of efforts to strengthen the people’s economy from the grassroots level.
According to him, cooperatives are essential because many farmers face cash flow gaps during the planting to harvest period, which can last up to four months. During this time, urgent needs often force them to seek quick loans.
“Because farmers only harvest after 120 days. Within those 120 days, sometimes their wife falls ill. So they need to borrow money. From whom do they borrow? From moneylenders. And moneylenders are terrifying. They charge 1% per day,” he said during a discussion with several figures broadcast on the Prabowo Subianto YouTube channel, quoted on Sunday (22/3).
Prabowo described this practice as a form of human oppression that must be stopped. He views cooperatives as an instrument to provide fairer access to financing.
“This is human oppression against humans. How can the poor be charged 1% per day?” he stated.
Through the Merah Putih Cooperative programme, the government plans to provide credit with lower interest rates for small communities. He compared the high microcredit interest rates currently faced by small-scale borrowers with the loan costs enjoyed by large businesses.
“Small people face 20%. I say, that’s not possible. The Merah Putih Cooperative must be below that. If necessary, 6% per year. It’s possible,” he explained.
He claimed that in a short time, the government has built tens of thousands of cooperatives equipped with various supporting facilities.
“Who would have thought we could build 80,000 cooperatives complete with warehouses, complete with cold storage, complete with all that in one year? No way. Today we already have 30,000 cooperatives,” Prabowo revealed.
Prabowo assessed that the main issue with the people’s economy is not a lack of potential, but rather suboptimal management and organisation.
“So our economic strength is great. It just needs to be organised. Just organised,” he concluded.
Village cooperatives require a partnership model that is not burdensome in the initial stage, while still providing room for business development.
The Minister of Villages and Underdeveloped Regions Development, Yandri Susanto, intends to halt new permits for Alfamart and Indomart establishments so that the Merah Putih Village Cooperative (Kopdes) programme can run effectively.
The target for 2026 is for all outlets to be operational. For now, efforts are being made through Agrinas and the TNI, which are frequently coordinated from Korem and Kodim levels.
Deputy Minister of Cooperatives Farida Farichah views KSP Nasari as a strategic partner of the government in promoting financial inclusion and local economic empowerment.
This policy is an important part of the national economic equality agenda, while affirming the role of cooperatives as a new pillar of grassroots economic development.