Klaten, Central Java — July 21, 2025 — President of the Republic of Indonesia Prabowo Subianto emphasized that the launch of 800,081 Merah Putih Village Cooperatives is not merely aimed at strengthening the people’s economic independence, but also serves as a concrete step to eliminate the exploitative practices of middlemen and loan sharks who have long disadvantaged farmers in rural areas.

Speaking at the official inauguration of the Merah Putih Village Cooperative Program in Bentangan Village, Klaten Regency, Central Java, President Prabowo recalled that he had been observing these chronic issues since serving as Chairman of the Indonesian Farmers Harmony Association (HKTI) in 2004.

One of the most persistent problems faced by farmers, he said, was the lack of trucks and proper storage facilities after harvest, resulting in significant post-harvest losses.

“Since 2004, as Chairman of HKTI, I have worked closely with KTNA [Indonesian Farmers and Fishers Association], where I also serve as a mentor. The problems are always the same. I’ve heard it many times: ‘Sir, I just harvested the best mangoes in Indonesia, but after 4–5 days there were no trucks, no transportation. In the end, the mangoes rotted,’” Prabowo shared.

Beyond logistics, President Prabowo also addressed the issue of subsidized fertilizer, which often fails to reach farmers due to excessive bureaucracy.

“The obstacles are many. Fertilizer subsidized by the state — through the national budget — is scarce and doesn’t reach the farmers. There are 145 regulations, requiring over a dozen signatures just to get fertilizer from the factory to the farmer,” he emphasized.

President Prabowo further highlighted the systemic exploitation of farmers by middlemen, who manipulate prices when farmers are in urgent need of cash for daily household needs. With little access to formal credit, many farmers are forced to borrow from loan sharks charging exorbitant daily interest rates.

“Every time the harvest is good, the farm-gate prices drop. Why? Because our farmers have very limited cash. Their children need to go to school, a family member falls ill, and they need money. But in the villages, no one lends money — except the loan sharks, who charge daily interest,” said Prabowo.

In light of this situation, the President stressed that the Merah Putih Village Cooperatives are a transformational measure to break the cycle of exploitation that has persisted for generations.

“Knowing that farmers struggle with money, their crops are often pre-purchased at low prices even before harvest. This has been going on for generations — not just for decades, but for hundreds of years. We must break this cycle, and we will do it through bold, decisive action. We are a great nation. We must think big and act boldly,” he concluded.