President Prabowo Stimulates Economy through Red-and-White Cooperative Program
President Prabowo underscored that the Red-and-White Cooperative (KDMP) program is one of the Government’s strategic instruments to strengthen economic circulation starting from villages. Through cooperatives, the Government has established a more efficient distribution system and strengthened control over the supply chain for basic needs from the central level to villages.
“For the first time in the history of the Republic of Indonesia, the Government will have a way to manage the supply chain, retail chain, from the central level to villages. For the first time in history, we won’t be blackmailed. There will be no more scarcity of goods. No more commodity hoarding in crises,” remarked the President in a Plenary Cabinet Meeting held at the State Palace Jakarta on Monday (7/20).
President Prabowo explained that the Government found a potential for significant savings through the supply chain for basic goods trade. The long distribution chain has resulted in economic value being more cherished by distributors than producers and consumers, he continued.
“Research by Minister of Agriculture shows that distributors’ profit reached 30 to 40 percent, equivalent to Rp313 trillion in total. The farmers get 30 percent, a third. Consumers get 30 percent, the rest 40 percent cherished by middlemen,” he explained.
According to the President, the KDMP initiative is expected to create a more efficient distribution system, so the profit margin made by distributors will be enjoyed more by farmers and consumers. Therefore, purchasing power will improve, and economic circulation in villages will get stronger.
“The profit margin in KDMP is around 5 to 10 percent, I think 5 percent is enough. This means farmers and consumers will enjoy the margin more. This is a long-term economic security,” he explained.
The President emphasized the Government’s commitment to focus on every program that benefits people and good governance. He believes that a pro-people policy and good governance will result in concrete deliverables and improve trust in Indonesia.
“This is true: if the policy is right, the intention is good, the direction is correct, and in accordance with the nation’s philosophy, common sense, and the will to serve the people, we can feel the results. The world has admitted,” he added. (BPMI of Presidential Secretariat) (RD/LW)
