Red and White Cooperative Targets Rp233 Trillion in Village Circulation

JAKARTA - President Prabowo Subianto said that the Red and White Village and Neighborhood Cooperative would channel up to Rp. 233 trillion in cash each year to villages. The program is also expected to increase the income of farmers, livestock farmers, and fishermen up to Rp. 202 trillion.

Prabowo conveyed the figure at the 79th National Cooperative Day Summit at Gelora Bung Karno, Jakarta, Sunday, July 12, 2026.

"Rp233 trillion per year will circulate in villages. Later there will be increased producer income, Rp202 trillion for farmers, livestock farmers, and fishermen," said Prabowo.

He said that the Indonesian economy has so far sucked too much wealth from the village to the city or abroad. Cooperatives are prepared to reverse the flow so that money remains circulating at the village, sub-district, and district levels.

"If until now the wealth of the Indonesian people has been sucked in, we will reverse it now. The economy will go down to the people," he said.

Each cooperative is designed to have a number of business units. Among them are grocery stores, savings and loans services, village pharmacies, cheap credit, cold storage, and distribution of subsidized goods.

Prabowo said all village residents would become members of the cooperative. With this model, it is hoped that the benefits of the business will not only be enjoyed by a handful of financiers.

He also targeted cooperatives to help cut logistics costs, which have been considered too expensive. Staple goods, fertilizers, generic drugs, and agricultural products can be traded through shorter routes.

According to Prabowo, cooperatives are not intended to weaken large businesses. The government still needs the private sector, MSMEs, SOEs, and BUMD.

However, he wants the village to have its own economic power so that it is not only a place to produce raw materials.

"Our economy will rise from villages, sub-districts, regencies. And the money will stay in the village, in the sub-district, in the regency," he said.

Prabowo said that more than a thousand Red and White Cooperatives had been operating. In the near future, the number is expected to reach 5,000 to 6,000 cooperatives.