President Prabowo’s State Address Highlights the Benefits of the Red and White Cooperative, Building the People’s Economy and Providing Access to Affordable Food
*) By: Fahmi Purba S.
President Prabowo Subianto’s State of the Nation Address on this historic occasion served as a concrete affirmation of the government’s commitment to building the people’s economic strength from the grassroots. One of the programs highlighted was the establishment of 80,000 Red and White Village and Sub-district Cooperatives across Indonesia. This program is designed not simply as a business platform, but as an instrument for economic equality and strengthening community independence. By leveraging local potential, these cooperatives are expected to encourage a more equitable distribution of goods and services, including the provision of basic necessities at affordable prices. This step reflects the vision of an inclusive, equitable, and welfare-oriented economy.
President Prabowo emphasized that these cooperatives will be a strategic solution to reduce the cost of living for the community. The business lines being developed include providing basic necessities such as rice and affordable cooking oil, distributing 3-kg LPG cylinders, and subsidized fertilizer for farmers. Furthermore, the cooperatives will have savings and loan units, health clinics, village pharmacies, and a warehousing and logistics system that can cut through the long distribution chain that has driven up prices. Furthermore, these cooperatives will also provide access to affordable protein sources such as fish and meat, ensuring public nutrition at more affordable prices. Thus, the Merah Putih cooperatives will play a role in balancing the market and driving the people’s economy.
This step is also expected to break the community’s dependence on middlemen who often set prices unilaterally. Ajbar Abdul Kadir, a member of Commission IV of the Indonesian House of Representatives (DPR RI), stated that the Merah Putih Village Cooperative (KDMP) is a driving force behind community-based economic development. By leveraging village potential, this cooperative will create new jobs, empower local resources, and drive the economy from the bottom up. Ajbar emphasized that, as committed by President Prabowo, this cooperative is the momentum for the birth of a new Indonesian economic civilization that prioritizes mutual cooperation, a sense of ownership, and independence. Its existence is expected to encourage active community involvement, so that village development is no longer solely dependent on external assistance.
The government understands that economic development cannot be partial. Therefore, the Merah Putih cooperative presents a holistic economic concept that connects upstream and downstream potential. The Presidential Communications Office’s spokesperson for the Economic Affairs, Fithra Faisal, explained that this cooperative does not focus solely on one sector or region, but connects villages to cities, from remote areas to centers of economic growth. This means equitable development becomes a reality, as all parties can participate and benefit. This approach also addresses the challenge of economic disparity, which has long been a barrier to Indonesia’s progress.
From a macroeconomic perspective, the existence of the Merah Putih cooperative will strengthen people’s purchasing power while expanding the national production base. Cheaper distribution of basic necessities will reduce inflationary pressures, particularly in the food sector. At the same time, the savings and loan unit will expand access to financing for small businesses in rural areas. This has a dual effect: boosting productivity and fostering a stronger internal market. With community involvement as owners and managers, this cooperative will maintain capital circulation at the local level, ensuring that profits do not leave the village but instead flow back into the community.
Socially, the Merah Putih cooperative will serve as a space for collaboration between residents, restoring the spirit of mutual cooperation that is the nation’s identity. Amid global challenges, community-based economic independence is the best bulwark for maintaining social resilience. When global food prices spike or global supply chains are disrupted, village cooperatives can act as a buffer with more secure local stocks and distribution. This way, communities are less likely to fall prey to detrimental price speculation. This role is crucial for maintaining social stability and reducing economic disparities between regions.
The development of this cooperative will also have a positive impact on national food security. By connecting farmers, fishermen, and livestock breeders through cooperative-managed distribution channels, transportation and logistics costs can be reduced. Consequently, the prices of fresh produce such as vegetables, fruit, fish, and meat can be more competitive, even in areas that have previously been difficult to reach. This approach aligns with the government’s goal of ensuring every family in Indonesia has access to nutritious food at affordable prices. In the long term, the quality of public health will improve, and the burden of healthcare costs can be reduced.
The success of the Merah Putih cooperative will depend heavily on active community participation. The government has established a training and mentoring program to ensure professional cooperative management. Transparency, accountability, and sound management will be key to ensuring the cooperative not only survives but also develops into a sustainable economic force. In this regard, synergy between the government and all elements of society is crucial. If all parties unite, the goal of building economic independence in villages will become a reality.
Ultimately, the Red and White Cooperative is not only a symbol of commitment to economic equality, but also a tangible instrument that will transform the Indonesian economy from the periphery to the center. With its inclusive economic concept and mutual cooperation, this program will pave the way for the emergence of a new generation of independent, creative, and highly competitive economic actors.
*) The author is a Public Policy Observer.
