President Prabowo’s State Address Says Red and White Village Cooperatives Will Create Millions of Jobs
Jakarta — President Prabowo Subianto, in his inaugural State Address at the Annual Session of the People’s Consultative Assembly (MPR/DPR/DPD), emphasized that the Red and White Village/Sub-district Cooperatives (KDMP/KKMP) will be the driving force for economic equality from rural to urban areas. He is optimistic that this program will create massive job opportunities.
According to Prabowo, cooperatives in every village will not only stimulate the local economy but also open up millions of job opportunities for the community. “Cooperatives in every village will boost the village economy and create millions of jobs,” he said at the Parliament Complex in Jakarta on Friday (August 15).
President Prabowo previously inaugurated 80,000 village/sub-district cooperatives on July 21, 2025, in Klaten, as a milestone in strengthening the people’s economy based on mutual cooperation. This program is under Presidential Instruction No. 9 of 2025 concerning the acceleration of the formation of KDMP/KKMP, with progress on establishing more than 81,000 cooperatives through village/sub-district deliberations as of August 1, 2025.
In his speech, Prabowo targeted every cooperative to have adequate infrastructure, such as a warehouse, cold storage, service outlets, and two trucks, by the end of 2025. He said these facilities would strengthen the distribution of food and basic necessities. “These cooperatives will become community-owned distribution and production centers, so that profits and prosperity return to the villages,” he said.
Finance Minister Sri Mulyani Indrawati added that the government will ensure affordable financing by placing state budget funds in Himbara banks. This scheme, she said, allows cooperatives to access loans with interest rates of around 6 percent for up to six years. “We will continue to support the optimal operation of the KDMP/KKMP business model in villages and sub-districts,” she said.
Meanwhile, Fithra Faisal, the Economic Spokesperson for the Presidential Communications Office, explained that this program represents a comprehensive approach to economic development. He stated that the KDMP/KKMP connects upstream and downstream sectors in a participatory manner. “This is holistic economic development, from upstream to downstream, from villages to cities,” he said.
The KDMP/KKMP program is one of the government’s instruments in carrying out the mandate of Article 33 of the 1945 Constitution to build an economy based on joint ventures for the prosperity of the people.
