September 17, 2026 | 01:36 pm
TEMPO.CO, Jakarta - President Prabowo Subianto expressed optimism that the Red and White Village Cooperatives will start making a more noticeable economic impact by 2027, serving as the main supply chain channel at the village level.
According to a statement received in Jakarta on Wednesday, Prabowo stated that the cooperatives act as the primary supply chain hub for villages. This will shorten distribution chains, allowing the public to access basic commodities at more affordable prices.
"The impact will likely be felt in a few months, perhaps 2027 or by the end of 2028," Prabowo explained, as quoted from Antara.
Currently, the government is still in the process of rolling out the program, with only around 6,000 cooperatives operational so far.
Prabowo expressed confidence that the economic benefits of the initiative will become more apparent as more cooperatives are established.
Red and White Village Cooperatives is expected to create a more efficient supply chain system in the country by allowing producers to supply their goods directly to consumers.
Prabowo noted that farmers' produce currently has to pass through about five intermediaries before reaching consumers. These middlemen take substantial profit margins, which can reach between 30 and 40 percent.
He said the situation was far from ideal, as consumers end up paying higher prices for various food while farmers receive less income, with most of the profits going to intermediaries.
"Farmers get additional income, yet consumers can also save money. That is essentially the core idea," Prabowo added.
The president added that building a village-based economic ecosystem is part of the government's efforts to strengthen the foundations of the national economy.
Read: Prabowo Says Large-Scale Investment to Enter Indonesia in Coming Weeks
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