Core Viewpoint - The "Red and White Cooperative" project initiated by Indonesian President Prabowo aims to shorten distribution chains and improve the supply of essential goods, particularly for economically disadvantaged groups, by establishing over 80,000 cooperatives nationwide [1][2]. Group 1: Project Overview - The project will create approximately 2 million job opportunities and provide services such as grocery delivery, fertilizer supply, subsidized gas, medical services, logistics, and financial services [1]. - Each cooperative can borrow up to 3 billion Indonesian Rupiah from state banks at an interest rate of 3%, with a total potential borrowing exceeding 240 trillion Indonesian Rupiah (approximately 15 billion USD) [1]. Group 2: Economic Strategy - This initiative is part of a broader strategy to enhance food security, reduce rural poverty, and eliminate predatory lending, with a goal of increasing the economic growth rate to 8% [2]. - Previous measures by Prabowo included a nationwide free meal program and health checks, indicating a consistent focus on economic stimulation [2]. Group 3: Concerns and Risks - The project has raised concerns regarding debt and fiscal risks, particularly due to the potential for mismanagement leading to financial burdens and increased corruption [2]. - A report estimates a debt default risk of up to 85.96 trillion Indonesian Rupiah for the cooperatives, with opportunity costs for state banks potentially reaching 76 trillion Indonesian Rupiah [3]. - If credit resources are diverted from high-productivity sectors, it could result in a GDP reduction of 9.85 trillion Rupiah and the loss of 824,000 jobs over the next six years [3]. Group 4: Support and Positive Perspectives - Some officials, like the Minister of Agriculture, view the cooperatives as a means to simplify food distribution and stabilize staple prices [3]. - Local leaders and citizens express support for the cooperatives, believing they will aid rural economic development and support small and medium enterprises [3].