Prabowo to launch village cooperatives nationwide in Klaten

Jakarta (ANTARA) - President Prabowo Subianto is set to launch cooperatives established nationwide under the Red and White Village Cooperatives (KMP) program in Klaten, Central Java, on July 19, Coordinating Minister for Food Zulkifli Hasan stated.

"We have decided that the nationwide inauguration will be centered in Klaten, Central Java," he remarked at a press conference in Jakarta on Monday.

According to Hasan, the government has granted legal entity status to at least 500 village cooperatives, with about 100 of them having met the requirements to serve as models for the initial phase of the program's implementation.

The minister explained that these cooperatives are envisioned to provide various essential goods and services, such as basic necessities, pharmaceutical products, savings and loan services, medical services, logistics, and cold storage.

"In other words, the cooperatives will provide fertilizers, subsidized LPG, and staple goods, as well as absorb unhusked rice and corn," Hasan elaborated.

The minister highlighted that the government had partnered the KMPs with state-run banks, such as BNI, BRI, and Mandiri, to support their financial services.

He explained that involving these banks aims to protect rural residents, especially farmers and fishermen, from predatory lending practices.

"This approach is aimed at facilitating access to banking services in rural areas, thereby reducing the influence of loan sharks and middlemen. Meanwhile, by offering staple commodities, the cooperatives can help shorten distribution chains," he elaborated.

Earlier, on June 30, Deputy Minister of Cooperatives Ferry Juliantono announced that the government had facilitated the establishment of 80,400 KMPs across 38 provinces, with 92 designated as pilot models.

He expressed hope that these selected cooperatives would serve as benchmarks for the others nationwide.

The following day, Cooperatives Minister Budi Arie Setiadi highlighted that President Prabowo had set a target for all cooperatives to begin operations by the end of this year.

"Since the cooperative establishment phase is complete, we are now entering the second phase, which focuses on initiating business activities," he remarked in Jakarta.