RADAR TULUNGAGUNG – The Indonesian government continues to strengthen the Free Nutritious Meals program or MBG alongside the rapid expansion of Merah Putih Village Cooperatives across the country. President Prabowo Subianto said the two programs will become the backbone of rural economic growth while supporting industrialization and affordable financing for small communities.
Speaking during a recent public event, Prabowo emphasized that MBG has become one of the most important social programs for lower-income families. He claimed many villagers, farmers, and grandparents directly asked him not to stop the program because it helps children gain access to daily meals.
According to Prabowo, MBG not only improves nutrition but also reduces the burden on household spending in rural areas. He said the government now wants to strengthen the program by integrating it with Merah Putih Village Cooperatives, fishermen’s villages, and downstream industrial projects.
MBG and Village Cooperatives Become Key Economic Strategy
Prabowo described Merah Putih Village Cooperatives as a major tool to build economic independence in villages. He explained that the cooperatives will help distribute cheap credit, logistics services, subsidized products, and government assistance directly to local communities.
The president stressed that the government wants to end unfair financing practices that burden micro-business owners and women entrepreneurs in villages. He highlighted the super micro Mekaar financing program managed by Permodalan Nasional Madani or PNM.
Prabowo revealed that the interest rate previously reached around 22 to 24 percent. He immediately instructed officials to cut the rate below 10 percent. The government later agreed on an interest rate of around 8 percent for the program.
He criticized the previous financing structure because large business groups could access loans with lower interest rates while small village entrepreneurs faced much higher borrowing costs.
“Big businesses can get loans at around 9 percent, but mothers in villages faced rates above 20 percent. That situation was unfair, and we changed it,” Prabowo said.
Cheap Credit and Logistics Expected to Help Farmers
Prabowo also highlighted long-standing problems faced by Indonesian farmers, including fertilizer shortages, limited capital, and difficulties in accessing markets after harvest season.
He said many farmers previously struggled to sell their products because buyers rarely entered remote villages. Some agricultural products even spoiled before reaching consumers due to weak logistics systems.
To solve the issue, Merah Putih Village Cooperatives will operate trucks and pickup vehicles that can transport crops directly from villages to markets. The government expects the system to reduce waste and increase farmers’ income.
Prabowo shared an example of a farmer who once told him that his village produced some of the best mangoes in the world, yet no buyers ever came because the village sat more than 50 kilometers away from major trade routes.
Under the cooperative system, villages will no longer depend on middlemen or external distributors. Instead, they can independently transport products to markets and negotiate better prices.
Cooperatives to Provide Subsidized Goods and Healthcare
Besides agricultural logistics, the cooperatives will also manage the distribution of subsidized necessities such as fertilizer, cooking gas cylinders, and staple food products.
Prabowo explained that the cooperatives will collaborate with Pos Indonesia to improve logistics and distribute government aid more efficiently.
The cooperatives will also absorb rice harvests from farmers and provide affordable healthcare services through village pharmacies. The government plans to reduce medicine prices so rural communities can buy essential drugs at lower costs.
Prabowo believes the expansion of Merah Putih Village Cooperatives will accelerate national economic growth because every village can eventually build its own financial and logistical strength.
He added that the government aims to rapidly scale up the program nationwide. From an initial 1,000 cooperatives, the administration now targets the inauguration of around 30,000 cooperatives by August.
Government Targets Faster Rural Industrialization
The president said the combination of MBG, cheap credit, fishermen’s village development, and Merah Putih Village Cooperatives will support Indonesia’s broader industrialization agenda.
He argued that stronger rural economies can create a more stable national supply chain while increasing purchasing power among lower-income communities.
The government also expects the cooperatives to become local financial institutions capable of supporting small businesses, farmers, and informal workers without forcing them into high-interest debt.
As the administration accelerates the rollout, MBG and Merah Putih Village Cooperatives are now emerging as two of the biggest economic and social programs promoted by the Prabowo government.