President Prabowo Emphasizes Village Economies, Cooperatives, and MSMEs as Pillars of the National Economy
President Prabowo Subianto emphasized that Indonesia’s economic power lies within village and people-based economies, generated by our farmers, our fishers, our merchants, our craftspeople, our female breadwinners, our householders, and our youth who build businesses in their hometowns. Therefore, it is necessary to strengthen connectivity between villages and clean water access, as well as the establishment of the Merah Putih Village/Urban Village Cooperatives as part of the Government’s efforts to enhance the people’s economy.
“In the 1998 crisis, the monetary crisis, major banks closed, and major corporations went bankrupt. Many businesses were sold, but the village economy, the people’s economy, remained strong. It endured. What ultimately helped save us were our MSMEs and the people’s economy. Therefore, connectivity between villages must be strengthened,” President Prabowo said in State of the Nation Address of President of the Republic of Indonesia at the Annual Session of the People’s Consultative Assembly of the Republic of Indonesia and the Joint Session of the House of Representatives of the Republic of Indonesia and the House of Regional Representatives of the Republic of Indonesia, on Friday (08/14).
In addition, President Prabowo underscored the significance of the Merah Putih Village and Urban Village Cooperatives as the center of the people’s economy in villages.
“As I mentioned earlier, we are establishing the Merah Putih Village/Urban Village Cooperatives as centers of the people’s economy. As I mentioned earlier, 10,000 cooperatives have begun operations as of today. Out of 10,000, 3,300 have operated optimally, while the remaining are in the adjustment stage. Optimal operations mean that all necessary facilities, including electricity and water, are in place and fully functional. Inventory can be monitored through a centralized digital system,” President Prabowo stated.
The Head of State also mentioned that the Government has targeted to have 30,000 cooperatives operating optimally by the end of 2026 in order to accelerate the development of people’s economy. He added that the strength of Indonesian economy lies in MSMEs. The Government, he continued, has established a fairer revenue sharing arrangement for online motorcycle taxi drivers, from only receiving 80 percent of the value generated by their work to receiving 92 percent.
Besides, the Government are advancing the green economy that gives added value to the people. For the first time, he said, Indonesia has implemented a carbon unit registry system, has established and operationalized the Carbon Economic Value Exchange, adopting international carbon standards.
“By protecting our forests, our protected forests, and all our forests, we reduce our carbon emissions. In return, nations that produce large amounts of emissions are willing to pay us. This is precisely what the green economy should do, my fellow citizens: it must bring benefits to our people,” President Prabowo said.
Furthermore, the Head of State mentioned that the resilience of the people’s economy must continue to be strengthened, among others, through connectivity between villages.
“This year, the TNI has completed the construction of 2,500 village bridges, while the Indonesian National Police has completed 874. Our target is to complete more than 5,000 village bridges by the end of this year. There must never again be any of our children having to to risk their lives crossing rivers to reach school because no bridge is available, or compelled to walk for hours to attend classes in soaking-wet clothes,” he mentioned, adding that TNI has built 3,000 village clean-water facilities in just the first eight months of 2026 due to the fact that many people still lack access to clean water. (BPMI of Presidential Secretariat) (AW/LW)
