Prabowo: Subsidized goods not for trade, will be distributed via Merah Putih Cooperatives

President Prabowo Subianto declared that government-subsidized goods are not for trading and will be channeled through "Merah Putih" Village/Neighborhood Cooperatives. Speaking at the Annual Session of the People's Consultative Assembly and the Joint Session of the House of Representatives and Regional Representative Council in Jakarta on Friday, Prabowo emphasized that subsidies, funded by public money, must directly benefit the people.

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All subsidized goods will be distributed through Merah Putih Cooperatives, so subsidized goods cannot and must not be traded.

"All subsidized goods will be distributed through Merah Putih Cooperatives, so subsidized goods cannot and must not be traded," Prabowo stated. He reiterated that subsidized items are not commodities for resale, asserting, "Subsidy is people's money. Goods that are subsidized, are subsidized by people's money for the people, and are not merchandise."

This policy is part of the government's strategy to strengthen the public's role in the supply chain. Prabowo acknowledged the necessity of market mechanisms in the economy but warned against their manipulation by entities with significant capital. "We are not anti-market. We cannot be anti-market. The economy is based on the movement of the market. But the market can be manipulated, the market can be damaged, the market can be controlled by those who control large capital," he explained.

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Subsidy is people's money. Goods that are subsidized, are subsidized by people's money for the people, and are not merchandise.

To counter this, the government is bolstering cooperatives as the economic backbone for the populace. Currently, 10,000 "Merah Putih" Cooperatives are operational, with 3,300 functioning optimally. The target is to have 30,000 such cooperatives established and operating effectively by the end of 2026. This expansion aims to give the state greater control over supply chains, preventing ordinary citizens from being exploited by dominant trading entities.

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We are not anti-market. We cannot be anti-market. The economy is based on the movement of the market. But the market can be manipulated, the market can be damaged, the market can be controlled by those who control large capital.