Village cooperatives stem from decades-long dream: Prabowo

Jakarta (ANTARA) - President Prabowo Subianto revealed that the idea of establishing the Red and White Village Cooperatives had been on his mind for decades, dating back to his time as a military officer stationed in rural areas.

Speaking at the main celebration of the 79th National Cooperative Day in Jakarta on Sunday, the president said his experience living among villagers inspired the concept of strengthening cooperatives as a vital tool for empowering the grassroots economy.

"The concept of the Red and White Cooperative has been on my mind for a long time—for decades, in fact," President Prabowo said.

Prabowo recalled that during his deployments to rural areas, he witnessed firsthand the harsh realities faced by communities living in poverty, with some even suffering from starvation.

These experiences, President Prabowo continued, convinced him that Indonesia's development must begin with strengthening its villages. Even as Indonesia transitions into an industrial nation, the government must ensure that those at the grassroots are protected and have access to economic opportunities.

He noted that cooperatives are one of the most effective tools for strengthening the rural economy. However, he acknowledged that past efforts to develop cooperatives progressed slowly due to limited authority and a lack of access to capital.

Now that he is in office, President Prabowo noted that his administration has focused first on boosting the agricultural sector, including fast-tracking food self-sufficiency, lowering fertilizer prices, and raising grain purchase prices to increase farmers' incomes.

Despite these efforts, he admitted he still receives reports of many farmers facing severe financial distress due to being trapped in high-interest debt offered by loan sharks just to get by during the planting season.

The president stated that, as an initial step under the new administration, the government has wiped out the debts of millions of farmers deemed unable to pay.

Furthermore, the government initiated the establishment of Red and White Village Cooperatives as savings and loan cooperatives in every village and sub-district, ensuring communities have access to affordable financing.

According to him, the target of establishing 81,000 village cooperatives matches the total number of villages and sub-districts across Indonesia.

These cooperatives, he added, are part of the government's efforts to break the public's dependence on high-interest predatory lending while strengthening the foundation of the grassroots economy at the village level.

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Translator: Maria Cicilia, Raka Adji

Editor: Azis Kurmala

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