TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto shared the origin of the idea for the Red-and-White Village Cooperative project. According to the Head of State, the idea of building the Red-and-White Village Cooperative has been in his mind for decades.
Prabowo recounted that, while serving in the Indonesian National Army, he witnessed people struggling to meet their basic food needs. He mentioned having witnessed someone die of hunger. "I saw people dying of starvation and I couldn't do anything because my food was limited to my company," said Prabowo during a speech at the peak event commemorating the National Cooperative Day in Senayan, Jakarta, on Sunday, July 12, 2026.
From this experience, Prabowo claimed that he was determined to create prosperity in rural communities. The former Minister of Defense believes that one way to do this is through the power of cooperatives. "From there, I saw that we must maintain and preserve our capabilities in the villages. Indonesia's independence, our struggle for independence, our strength lies in the villages," said Prabowo.
Furthermore, Prabowo stated that people burdened by debt were one of the reasons he promoted the establishment of the Red-and-White Village Cooperative. He mentioned that vulnerable communities generally have low and uncertain incomes. Meanwhile, they have basic and urgent needs that need to be met.
According to Prabowo, this situation then forces people to borrow money from loan sharks at high interest rates.
The Gerindra Party chair stressed that vulnerable communities have the right to access affordable financing. "There is no other way. Our people must have the opportunity to borrow money at low interest rates. The answer is that there must be savings and loan cooperatives in every village across the Republic of Indonesia," said Prabowo.
Additionally, Prabowo hopes the Red-and-White Village Cooperative will distribute various subsidized goods more effectively. "Almost all subsidized goods can be distributed through cooperatives so they are not misused. Because many subsidized goods are misappropriated and do not reach the people," he said.
Read: Prabowo Optimistic Cooperative Revival Will Boost Indonesia's Economy
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