President Prabowo Subianto stated that Koperasi Desa/Kelurahan Merah Putih will become village economic centers and the primary distributors of government subsidies. He made the remarks at the 79th National Cooperative Day event in Jakarta on July 12, 2026.
In his speech at Indonesia Arena, Jakarta, President Prabowo explained that the cooperatives will provide integrated services. These include cooperative offices, sembako stores, low-interest savings and loans, village pharmacies with affordable generic medicines, warehouses, and cold storage for agricultural produce.
Prabowo stressed that all subsidized goods must be channeled through village cooperatives. "All subsidized goods must be distributed to the people through Koperasi Desa Merah Putih. It must be done!" he said. The measure aims to ensure subsidies reach the intended recipients and prevent misuse.
The president also projected that the program will generate Rp223 trillion in annual money circulation in villages. Producer incomes for farmers, livestock breeders, and fishers are expected to rise by Rp202 trillion.
