In Klaten, Central Java, the President of Indonesia, Prabowo Subianto, highlighted the significance of launching 800,081 Merah Putih Village Cooperatives. This initiative aims not only to empower the economic independence of the people but also to eradicate the exploitative practices of middlemen and loan sharks that have disadvantaged farmers in rural areas for a long time.
During the official inauguration of the Merah Putih Village Cooperative Program in Bentangan Village, Klaten Regency, Central Java, President Prabowo reflected on his observations of chronic issues faced by farmers since his time as Chairman of the Indonesian Farmers Harmony Association (HKTI) in 2004. One prevalent issue he mentioned was the lack of trucks and proper storage facilities, leading to substantial post-harvest losses.
President Prabowo shared his experiences of working closely with the Indonesian Farmers and Fishers Association (KTNA) to address the recurring problems faced by farmers. These problems included the delay in receiving subsidized fertilizer due to bureaucratic hurdles involving multiple regulations and signatures.
Moreover, the President shed light on the exploitation of farmers by middlemen who manipulate prices during urgent cash needs. With limited access to formal credit, many farmers resort to borrowing from loan sharks, who charge high daily interest rates.
In response to these challenges, President Prabowo emphasized that the Merah Putih Village Cooperatives mark a transformative step to break the cycle of exploitation that has persisted for generations. He stressed the need to take bold and decisive actions to uplift the agricultural sector and ensure the prosperity of farmers in Indonesia.