President Prabowo’s State Address Presents the Red and White Village Cooperative as a Regional Economic Solution
By: Nindi Syafitri
President Prabowo Subianto’s state address at the 2025 Annual Session of the People’s Consultative Assembly (MPR) and the Joint Session of the DPR-DPD (Regional Representative Council) has become a public spotlight not only because of the momentum of the 80th Anniversary of the Independence of the Republic of Indonesia, but also because of the birth of a major idea for national economic equality: the establishment of the Red and White Village and Sub-district Cooperatives. This program emphasizes the government’s determination to break the dependence on money circulation that has been concentrated in the capital and big cities, while simultaneously revitalizing the economic pulse to remote areas of the country.
The Merah Putih Village and Sub-district Cooperative (KDMP) presents a concrete solution to address the economic disparity that has long been a challenge to national development. With a target of establishing 80,000 cooperatives across Indonesia, this program serves not only as a means of distributing affordable food but also as a gateway for strengthening community-based economies. Its existence is expected to ensure that basic necessities such as rice, cooking oil, subsidized LPG, and fertilizer are accessible to the public at affordable prices, without being entangled in long and expensive distribution chains.
Presidential Instruction Number 9 of 2025 concerning the Acceleration of the Establishment of Red and White Village/Sub-district Cooperatives serves as a legal framework that underscores the government’s commitment. The official launch of this program in Klaten, Central Java, on July 21, 2025, symbolizes the commitment to making villages and sub-districts centers of new economic growth. Not only will KDMP provide basic necessities, but it will also manage various other business lines such as savings and loans, health clinics, village pharmacies, and efficient warehousing and logistics systems. This step will shorten distribution channels and reduce costs, so that the benefits can be directly felt by the community.
Trisakti University public policy observer Trubus Rahadiansyah views the KDMP as a national strategic program capable of driving village economic progress, creating jobs, and supporting food self-sufficiency. He believes this program can bring equitable development to remote, underdeveloped, and outermost regions (3T), which have often been marginalized from mainstream economic growth. With the active involvement of village communities in managing cooperatives, it is hoped that a sense of ownership and collective responsibility will emerge to develop joint ventures for the common good.
Beyond the direct benefits of affordable food access, KDMP plays a strategic role in building national economic resilience. Economically strong villages will be more resilient to global food price fluctuations and supply fluctuations. With community-based management, the government can ensure that subsidies and essential goods reach their intended recipients. This represents a crucial breakthrough in avoiding distribution leaks, a long-standing obstacle to aid and subsidy distribution.
President Prabowo firmly stated that cooperatives in every village and sub-district will be the backbone of economic equality and a tool for creating millions of new jobs. The presence of the KDMP will stimulate the local economy, stimulate the trade, agriculture, livestock, and fisheries sectors, and open opportunities for micro-enterprises to develop. With a transparent and professional system, these cooperatives are also expected to become a model for sustainable, people-centered economic management.
The social impact of this program cannot be overlooked. With the availability of basic necessities and basic necessities at affordable prices, household expenses will be significantly reduced. Farmers and fishermen will have access to fertilizer, seeds, and feed at affordable subsidized prices, thereby increasing productivity. At the same time, villagers will have the opportunity to participate in cooperative business units, either as members, managers, or business partners.
This momentum also serves as a reminder that true national development is equitable, reaching all levels of society without exception. Villages are no longer merely objects of development, but active subjects playing a role in determining the direction of economic growth. The Village Development Program (KDMP) serves as an instrument for reviving the spirit of mutual cooperation within a modern framework, where community participation is key to success.
As a program launched early in President Prabowo’s presidency, the success of the KDMP will serve as a benchmark for the government’s commitment to building an inclusive economy. Challenges certainly exist, ranging from the readiness of human resources at the village level, professional management, and oversight to prevent abuse of authority. However, with the right mentoring and training system, the KDMP has the potential to become a new milestone in Indonesia’s economic development history.
President Prabowo’s state address on August 15, 2025, marked the beginning of a new chapter in national economic transformation. The KDMP (Indonesian Food and Drugs Development Program) is not simply a program for distributing affordable goods, but rather a grand strategy to shift the economic center of gravity from cities to villages. This initiative embodies a grand vision: building Indonesia from the periphery by strengthening the people’s economy, solidifying food security, and ensuring equitable prosperity from Sabang to Merauke.
If implemented with consistency, transparency, and strict oversight, the Merah Putih Village and Sub-district Cooperative will be a valuable legacy for future generations. This program has the potential to transform Indonesia’s villages into new centers of economic growth, where people become not only consumers but also empowered producers. Thus, the grand ideals of unity, sovereignty, a prosperous people, and a progressive Indonesia can be realized, starting from the grassroots of the nation’s economy.
*The author is an economic observer
