Prabowo Forms Cooperatives For Red And White Villages To Absorb Local Agriculture Products

Coordinating Minister for Food Zulkifli Hasan gave a press statement at the Presidential Palace, Jakarta, Monday (3/3/2025). ANTARA/Cahya Sari

JAKARTA - President Prabowo Subianto immediately formed an economic activity center in each village called the Red and White Village Cooperative to absorb local agricultural products and cut the distribution chain to consumers.

Coordinating Minister for Food Zulkifli Hasan said that the formation of the Village Cooperative or Kop Des Merah Putih was a directive from President Prabowo Subianto in a limited meeting he chaired this afternoon.

"Later, the budget will come from the current village funds. It will be formed later, the body will be operated. To build a warehouse there with six outlets," said Zulkifli Hasan as quoted by ANTARA, Monday, March 3.

It is said that Kop Des Merah Putih will be built in 70,000 to 80,000 villages throughout Indonesia.

Zulkifli Hasan or Zulhas estimates that each village needs a budget of IDR 3 billion to IDR 5 billion for the development and development of Kop Des.

The budget can later be allocated from village funds provided by the government amounting to Rp1 billion per year.

"The one village is estimated to cost Rp. 3 billion to Rp. 5 billion. We have village funds of Rp. 1 billion per year. For 5 years, one village is Rp. 1 billion, which means 5 years is Rp. 5 billion. However, this is needed in the future," said Zulhas.

The Association of State Banks (Himbara) will also play a role in initial funding so that villages can displace for 35 years to ensure cooperatives can operate optimally from the start.

In its implementation, said Minister of Cooperatives Budi Arie Setiadi, Kop Des Merah Putih will be developed through three models, namely building new cooperatives, revitalizing existing cooperatives, and thirdly building and developing cooperatives.

Budi noted that there are around 64,000 farmer groups (gapoktan) that are ready to migrate to become cooperatives so that the agricultural system and food distribution in the village can be better integrated.

"What is certain is that the establishment of the Red and White Village Cooperative will break the chain of distribution of goods whose effects are detrimental to consumers and to producers so that prices can be cheaper in the community," said Budi Arie.