President Prabowo Subianto, during the official inauguration of the Merah Putih Village Cooperative Program in Central Java’s Bentangan Village, highlighted the significance of this initiative. He stressed that the establishment of 800,081 cooperatives aims not only to enhance the economic independence of the people but also to eradicate the exploitative practices of middlemen and loan sharks that have long victimized farmers in rural areas.
Having witnessed these chronic issues while serving as Chairman of the Indonesian Farmers Harmony Association in 2004, President Prabowo emphasized the challenges faced by farmers, such as the lack of transportation and storage facilities leading to post-harvest losses. He also addressed the bureaucratic hurdles hindering farmers from accessing subsidized fertilizer.
In addition, President Prabowo raised concerns about the exploitation of farmers by middlemen who manipulate prices and the reliance of farmers on loan sharks due to limited access to formal credit. The Merah Putih Village Cooperatives are seen as a transformative solution to break the cycle of exploitation that has persisted for generations.
The President emphasized the need for bold and decisive action to empower farmers and eliminate exploitative practices. By establishing these cooperatives, the government aims to provide farmers with better market access, fair prices, and financial inclusion to ensure their economic well-being and independence.
