President Prabowo Subianto led a limited meeting that decided Village/Kelurahan Red-White Cooperatives will serve as channels for social assistance and offtakers for rice and corn harvests.
The meeting lasted about four hours on Wednesday night, 15 July 2026, at the Presidential Palace in Jakarta. Coordinating Minister for Food Zulkifli Hasan said the cooperatives will distribute social assistance and subsidized goods, and buy agricultural products when prices fall below government-set levels.
Minister of Villages and Development of Disadvantaged Regions Yandri Susanto added that 20 percent of cooperative profits will become Village Original Revenue, while the remaining 80 percent returns to village residents. Village governments will collaborate with BUMDes to maximize the potential of 75,266 villages.
Minister of Social Affairs Saifullah Yusuf said the social assistance distribution scheme through the cooperatives will be trialed in August 2026 at several locations. The move aligns with Presidential Instruction Number 9 of 2025 on accelerating the formation of these cooperatives.
