Prabowo’s Cooperative Initiative: Strengthening Local Economic Power

Prabowo Declares War on “Serakahnomics”: Unearths Massive Agricultural Profiteering, vows Asset Seizure

Jakarta, Indonesia – President Joko Widodo’s administration is launching an aggressive offensive against what it terms “serakahnomics” – the economics of greed – targeting millers and large-scale distributors accused of engaging in predatory practices within the agricultural sector. President Prabowo Subianto, speaking at a significant launch event, directly confronted these entities, revealing government data suggesting massive, unfair profits at the expense of Indonesian farmers and the nation’s economic well-being.

“Some of these millers are making profits up to US$125 million per month. That’s not business, that’s predatory behavior,” President Prabowo declared, drawing a stark line between legitimate enterprise and exploitative tactics. He issued a stern warning: any large agricultural players found to be violating regulations and manipulating food prices will face the full force of the law, including the potential seizure of their assets and their transfer to farmer cooperatives.

“I have asked the Supreme Court – is our Constitution the highest law? They said yes. So if they defy the law, we will act,” he stated unequivocally, underscoring his commitment to constitutional principles and the welfare of the people.

The economic toll of this alleged manipulation is staggering. President Prabowo revealed that Indonesia loses an estimated US$6.2 billion annually due to price gouging and misdistribution in the agriculture and food sector, a phenomenon he labelled “economic sabotage.” He painted a vivid picture of the lost opportunity, noting that these funds, if channeled effectively, could finance the renovation of over 100,000 schools nationwide.For context, he highlighted the Ministry of Finance’s current struggle to renovate just 11,000 schools with a budget of US$1.2 billion, emphasizing that reclaiming the lost billions could “fix every school in the country within three years.”

President Prabowo did not mince words in his condemnation of the business elites responsible.Likening them to “economic vampires who drain the blood of the people,” he denounced their exploitation of the food supply chain and manipulation of subsidies. “This is not liberalism, socialism, or market economics. This is just plain greed. And we must stop it. I have warned them,and now we act,” he asserted. He has since instructed the Attorney General and the National Police Chief to initiate investigations and pursue legal action against those orchestrating price manipulation and misusing food subsidies.

The administration’s stance received strong backing from key national figures and institutions at the launch event. present were House of Representatives Speaker Puan Maharani, Regional Representatives Speaker Sultan Najamudin, and several ministers. Leaders from major State-Owned Companies, including Pertamina, Telkomsel, Kimia Farma, and Pos indonesia, alongside representatives from state-owned banks (Himbara), were also in attendance, signaling broad institutional support.

Coordinating Minister for Food Affairs,Syarif Hasan,and Minister of cooperatives,Budi Arie Setiadi,pledged robust,long-term institutional and financial support for agricultural cooperatives,reinforcing the government’s dedication to empowering farmers. The message of national unity and economic empowerment resonated through the event,with numerous regional leaders and village heads participating via video conference.

Concluding his address, President Prabowo articulated a powerful vision of true national independence, linking it directly to economic freedom and the ability to nourish one’s citizens.”A free nation is one that feeds its people. A dignified country is one where no child goes hungry,” he declared. While acknowledging the current pace of the government’s free nutritious meals program for schoolchildren – having reached 6.7 million students thus far – he expressed determination to accelerate progress: “We are not moving fast enough. But with the right resources and policies, we will feed every child and lift up every village.”

the “Red-and-White Cooperatives” initiative was presented not merely as an economic tool, but as a national movement to reclaim sovereignty from the clutches of predatory capital and secure a dignified future for all Indonesians, from the most remote villages to the urban poor.

How does Prabowo’s initiative address the historical inefficiencies of traditional cooperative models in Indonesia?

Understanding the Core of the Initiative

Prabowo subianto’s focus on strengthening local economic power through cooperatives isn’t a new concept in Indonesian progress, but his governance is approaching it with renewed vigor and a specific strategic framework. This initiative aims to move beyond traditional, frequently enough inefficient, cooperative models towards more dynamic and impactful economic engines. Key to this is fostering economic resilience at the grassroots level, reducing reliance on centralized systems, and promoting inclusive growth.The core principle revolves around empowering local communities through collective economic action. This involves supporting the formation, management, and scaling of cooperatives across various sectors – agriculture, fisheries, manufacturing, and services.

Key Pillars of Prabowo’s Cooperative Strategy

The initiative rests on several interconnected pillars designed to create a enduring and thriving cooperative ecosystem:

Access to Capital: A significant hurdle for many cooperatives is securing funding. Prabowo’s plan includes dedicated credit lines, microfinance schemes, and government-backed loan guarantees specifically for cooperatives. This aims to address the financing gap and enable expansion.

capacity Building & Training: Simply providing capital isn’t enough. The initiative prioritizes comprehensive training programs for cooperative members and managers. These programs cover areas like financial management, marketing, quality control, and modern agricultural techniques. This focus on skill development is crucial for long-term success.

Market Access & Value Chains: Connecting cooperatives to broader markets is vital. The strategy emphasizes developing robust value chains,facilitating direct sales to consumers,and leveraging e-commerce platforms. This includes support for supply chain optimization and branding initiatives.

Technological Integration: Embracing technology is seen as essential for improving efficiency and competitiveness. the initiative promotes the adoption of digital tools for financial transactions, inventory management, and market data access. This includes supporting digital literacy within cooperative communities.

Legal & Regulatory Framework: Streamlining the legal and regulatory surroundings for cooperatives is a priority. This involves reducing bureaucratic hurdles, simplifying registration processes, and ensuring fair competition. A clear and supportive regulatory environment is critical for attracting investment and fostering growth.

Sector-Specific Applications: Examples in Action

The cooperative initiative isn’t a one-size-fits-all approach. It’s being tailored to the specific needs and opportunities of different sectors:

Agricultural Cooperatives: focus is on improving yields, reducing post-harvest losses, and securing better prices for farmers.This includes supporting the development of agro-industry cooperatives that process and package agricultural products. Examples include coffee cooperatives in Sumatra and cacao cooperatives in Sulawesi.

Fisheries Cooperatives: The initiative aims to empower fishing communities by providing access to modern fishing equipment, processing facilities, and marketing channels.Emphasis is placed on sustainable fishing practices and value-added processing.

Manufacturing Cooperatives: Supporting the establishment of small-scale manufacturing cooperatives focused on producing goods for local and regional markets. This includes providing access to technology, training, and quality control standards.This fosters local manufacturing and reduces reliance on imports.

Service Cooperatives: Promoting the development of cooperatives offering services like tourism, transportation, and healthcare. This creates employment opportunities and improves access to essential services in underserved areas.

Benefits of a Strong Cooperative Sector

A thriving cooperative sector offers a multitude of benefits for Indonesia’s economic and social development:

Increased Income & Poverty Reduction: Cooperatives empower individuals to earn higher incomes and improve their living standards.

Job Creation: Cooperatives generate employment opportunities, particularly in rural areas.

Reduced Inequality: Cooperatives promote more equitable distribution of wealth and economic opportunities.

Enhanced Economic Resilience: diversifying the economy and reducing reliance on large corporations.

Strengthened Local Communities: Cooperatives foster social cohesion and community development.

* Sustainable Development: Promoting environmentally responsible practices and resource management.

Case Study: The Rise of Koperasi Kopi (Coffee Cooperative) in Flores

The Koperasi Kopi Flores, established in 2018, exemplifies the potential of Prabowo’s cooperative initiative. Initially struggling with limited access to finance and market information, the cooperative received support through government-backed microloans and training programs. This enabled them to invest in improved coffee processing facilities and establish direct trade relationships with international buyers. Consequently, the cooperative’s income increased by over 300% within three years, considerably improving the livelihoods of its members. This success story highlights the importance of integrated support systems for cooperatives.

Practical Tips for cooperative Development

For individuals and communities interested in establishing or strengthening cooperatives:

1. Conduct Thorough Market Research: Identify viable buisness opportunities and assess market demand.
2. Develop a Robust Business Plan: Outline the cooperative’s goals,strategies,and financial projections.
3. Secure Adequate Funding: Explore available financing options, including government programs and microfinance institutions.
4. Invest in Capacity Building: Provide training and mentorship for cooperative members and managers.
5. Embrace Technology: