Purbaya Confident Village Cooperatives Will Profit from Prabowo's Policy

Minister of Finance Purbaya Yudhi Sadewa is confident that the Red and White Village Cooperatives (Koperasi Desa Merah Putih) will reap substantial profits in the future, driven by the latest policy from a cabinet meeting with President Prabowo Subianto. Prabowo has ordered that the distribution channels for all subsidised goods be transferred entirely to a single gateway through the Red and White Cooperative network, under the pretext of halting distribution mafias and smuggling. “It was decided yesterday in the cabinet meeting that all subsidised goods will be distributed through the Red and White Village Cooperatives and not traded outside of them,” Purbaya stated in Yogyakarta on Thursday. He explained that this policy would serve as the operational engine for the cooperatives, as they will become the sole official channel for selling government-subsidised essential goods. According to Purbaya, the cooperatives will secure a very promising profit margin, though he cautioned that this performance depends on the integrity of the administrators managing the substantial budgets and goods. “So, from that alone, the Red and White Village Cooperatives should definitely be profitable. As long as there is no corruption, it should be safe,” he said. To support this project, Purbaya stated the government is not holding back on budget support. He confirmed that the Red and White Village Cooperatives will be backed by a massive loan facility reaching Rp 240 trillion. The funding scheme will be sourced from a loan by the Association of State-Owned Banks (Himbara), with the principal and interest payments fully covered and paid periodically by the Ministry of Finance. This will utilise the state budget over the next six years, with an estimated allocation of around Rp 40 trillion per year. Purbaya dismissed any remaining scepticism regarding the state budget’s capacity to finance the programme, asserting that the country’s current fiscal position is very secure and sufficient to realise this major plan sustainably. “Our funds are sufficient and available. This is a major programme with an allocation of Rp 240 trillion over six years,” he said. He assured that there are no longer any funding obstacles for the public to worry about, adding that the government’s main focus has now shifted to strict field supervision. This is to ensure that the implementation governance is more orderly, clean, and minimises any potential for fiscal irregularities. “So, funding is no longer an issue, the most important thing is that the implementation is neater and cleaner with minimal leakages,” Purbaya stated. To guarantee operational readiness, the government is also providing full support for the human resources managing the cooperatives. He mentioned that all operational employees of the Red and White Village Cooperatives will be funded by the state to attend intensive training programmes. They will also receive guaranteed salaries for the first two years of operation, after which they are expected to become financially independent once the incubation period ends. President Prabowo had previously ordered the complete redirection of subsidised goods distribution exclusively through the Red and White Village or Sub-district Cooperatives. This policy was taken after the government evaluated that the existing distribution scheme often missed its target, failing to reach the lower-class communities in need due to widespread leakages. “All subsidised goods must be distributed to the people through the Red and White Village Cooperatives. It is a must, I say it is a must. The people’s subsidised goods must not be traded so that those who need them receive them,” the President said during the peak commemoration of the 79th National Cooperatives Day in Central Jakarta. Prabowo revealed the reality on the ground showing rampant misappropriation of subsidised commodities, including extreme cases where goods purchased with public funds were smuggled abroad by irresponsible individuals.