Jakarta. Managers of President Prabowo Subianto’s flagship Merah Putih Village and Urban Community Cooperatives are employees of state-owned company Agrinas Pangan Nusantara under two-year fixed-term contracts, the company’s president director said Wednesday.

Joao Angelo De Sousa Mota said the managers were hired under fixed-term employment agreements. “They are state-owned enterprise employees under Agrinas, with two-year fixed-term contracts,” Joao told reporters at the Bina Graha building in Jakarta.

He said the managers’ employment status would be reviewed after two years based on Agrinas’ staffing needs. Some employees could have their contracts extended, while others could be reassigned to positions outside the Merah Putih cooperative program.

Presidential Chief of Staff Dudung Abdurachman said President Prabowo had signed Presidential Regulation No. 82/2026 on the governance of the Merah Putih Village and Urban Community Cooperatives (KDKMP).

The regulation is intended to accelerate the cooperatives’ operations, including their role as distribution points for subsidized goods such as rice, 3-kilogram LPG cylinders, fertilizer, and Minyakita cooking oil.

Dudung said appointment letters for cooperative managers had been issued, while the Finance Ministry had prepared a system to process their salaries. Agrinas will coordinate with cooperatives that are ready to begin operating.

“The immediate priority is to ensure that the cooperatives can start operating and receive a continuous supply of goods,” Dudung said.

Cooperatives Minister Ferry Juliantono previously said 28,626 managers had been recruited and trained, while verification of 17,228 cooperative buildings and outlets was underway.

The government expects the cooperatives to strengthen supply chains and improve the distribution of subsidized goods by ensuring that products reach the right beneficiaries, in the right quantities, at the right prices and on time.

Program Faces Scrutiny

The Merah Putih cooperative program aims to establish or revitalize 80,000 village and urban cooperatives as integrated economic hubs. Planned services include the distribution of essential goods and subsidies, logistics, warehousing, financing, and the purchase of agricultural products.

The Rp 240 trillion program has faced scrutiny over its implementation, including the use of military-style training for prospective managers. Five participants died during the training in June, prompting calls for an investigation and a review of the program.

The Defense Ministry subsequently changed the training from basic military training to a program focused on civic defense and managerial preparation, reducing military-related activities.

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