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View all search resultsPrabowo rolls out state-backed co-ops to boost grassroots economy
Experts highlighted a disconnect between the government’s push for cooperatives and the public’s understanding on the ground.
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President Prabowo Subianto salutes the crowd from his vehicle on Monday ahead of inaugurating the establishment of 80,081 cooperatives under the Red and White Village Cooperatives (KMP) initiative in a national rollout ceremony held in Bentangan village, Klaten, Central Java..
(Courtesy of/BPMI Setpres)
P
resident Prabowo Subianto on Monday officially launched 80,081 cooperatives under the Red-and-White Cooperatives (KMP) program during a ceremony in Bentangan village, Klaten, Central Java.
In his speech, Prabowo described the cooperatives as “a tool of struggle” for the poor and a way for “economically weaker groups” to build collective strength.
He framed the initiative as a “strategic movement” aimed at challenging the longstanding economic dominance of big players.
“Initiatives like these aren’t welcomed by major capitalists or large investors. In many of their minds, cooperatives may be seen as competitors. And there are certain countries that wouldn’t be happy to see a big nation rise,” he stated.
The state-backed cooperatives will be equipped with warehouses, cold storage facilities, delivery vehicles and retail outlets, such as basic goods stores and pharmacies, in an effort to streamline supply chains and reduce logistical bottlenecks.
They will also have access to "super micro financing," Prabowo said, noting that the loan amounts will be smaller than those in typical microfinance schemes, with funds disbursed through state-owned banks.
He added that the government had allocated up to Rp 2.5 billion (US$150,000) per village for the program’s first year, sourced from existing village funds, though actual costs “could be lower in areas with idle public assets.”
