Jakarta – President Prabowo Subianto has taken a strategic step to improve the welfare of rural communities by establishing Village Cooperative Merah Putih across all rural areas.
This initiative aims to break the unfair distribution chain and protect residents from the predatory practices of loan sharks and online lending schemes that often trap them in debt.
Minister of Cooperatives and SMEs, Budi Arie Setiadi, explained that many rural residents have long struggled to access banking or cooperative services. This condition forces them to seek alternative financing options, which often come with high interest rates, further worsening their economic situation.
“The President wants Village Cooperative Merah Putih to be the solution for rural communities, ensuring they no longer rely on loan sharks, middlemen, or online loans that exacerbate poverty,” said Budi.
One of the key units within this cooperative is the savings and loan service, which will provide easier and more affordable financial access for rural residents. This will help prevent villagers from falling into a never-ending debt cycle, such as borrowing to repay previous loans, a problem that has persisted for years.
Additionally, the cooperative plays a crucial role in stabilizing agricultural product prices. Farmers’ harvests have often been purchased at low prices by middlemen. With the cooperative in place, the government can ensure more favorable selling prices for farmers.
“Village Cooperative Merah Putih is expected to bring positive changes and improve the welfare of rural communities,” Budi added.
This program will be developed through three main approaches: establishing new cooperatives, revitalizing existing ones, and forming and strengthening farmer groups in each village.
Meanwhile, Head of the National Food Agency (Bapanas), Arief Prasetyo Adi, stated that the cooperative will also support the Free Nutritious Meals (MBG) program and enhance the absorption of farmers’ dry grain harvests (GKP).
“With this cooperative, supply for the MBG program and grain absorption by Bulog can be optimized. This is an important step in strengthening the rural economy,” said Arief.
He further emphasized that Village Cooperative Merah Putih will serve as a reliable buyer for farmers’ produce, ensuring stable prices and preventing losses caused by low selling prices.
“This is great news for farmers. Their harvest prices won’t plummet because the cooperative is ready to absorb them. Right now, we are finalizing the implementation scheme,” he concluded.
