Indonesian Cooperative Poised for Profit Under Prabowo's New Subsidy Policy

Finance Minister Purbaya Yudhi Sadewa expressed confidence that the Red and White Village Cooperative will achieve substantial profits due to new policies implemented under President Prabowo Subianto. A recent cabinet meeting decided that all government-subsidized goods will be distributed solely through the cooperative's network. This move aims to eliminate distribution mafia practices and smuggling.

Purbaya stated that this single-channel distribution system will drive the cooperative's operations, making it the sole official channel for selling subsidized necessities. He anticipates a highly promising profit margin for the cooperative. However, he cautioned that this success hinges on the cooperative's management not misappropriating the substantial funds and goods entrusted to them. "So from that alone, the Red and White Village Cooperative will definitely profit. As long as it's not corrupted, it should be safe," Purbaya said.

To support this initiative, the government is providing significant financial backing. Purbaya revealed that the cooperative will receive massive loans totaling Rp 240 trillion over six years. This funding will come from state-owned banks, with the Finance Ministry responsible for all principal and interest payments, allocating approximately Rp 40 trillion annually. Purbaya dismissed skepticism regarding the state's fiscal capacity, asserting that the nation's finances are robust enough to sustain this ambitious plan.

With funding secured, the government's focus is shifting to stringent oversight at the field level. Purbaya emphasized the need for orderly, clean, and transparent management to minimize fiscal irregularities. "So there are no more issues with funding, the most important thing is that the implementation is neater and cleaner with minimal leakage," he stated. The government will also provide comprehensive human resource support to ensure the cooperative's operational readiness.