Prabowo prepares 81 thousand cooperatives to break the Rentenir trap in the village

JAKARTA - President Prabowo Subianto has prepared 81 thousand Red and White Village and Village Cooperatives to break the dependence of farmers and villagers on usurers. The cooperatives will provide cheap interest loans to basic needs services.

According to Prabowo, the number 81 thousand was chosen because it was in accordance with the number of villages and sub-districts throughout Indonesia.

"The problem is to cut the grip of land leeches, so as to free millions of our people from dependence on it," said Prabowo at the 79th National Cooperative Day Summit at GBK, Jakarta, Sunday, July 12, 2026.

He said many farmers still have difficulties even though the production and price of rice have increased. While waiting for the harvest, which takes about 100 days, they need money for school fees, medicine, and family needs.

The urgent need is often met through high-interest loans. Prabowo said there were lenders who charged interest of up to 1 percent per day.

"It's deadly. They can't get up for their whole life," he said.

Therefore, each cooperative will be equipped with a savings and loan service, microcredit, and supermicrocredit. Prabowo also said that the interest rate of the Mekaar program had been reduced from 22 percent to 8 percent.

"I want 5 percent. But the bankers said it was too thin because there were costs. Okay, 8 percent. Compared to 22 percent, it's pretty good," he said.

In addition to cheap loans, cooperatives will have grocery stores, village pharmacies, cold storage, and various other economic services.

Prabowo said that more than a thousand cooperatives have been operating. This number is expected to rise to 5,000 to 6,000 in the near future.

The government still has a target of all cooperatives to be formed in about one and a half years. However, Prabowo asked that the implementation not just chase numbers.

"If we are only able to 5,000, we will inaugurate it. Don't rush," he said.