Cooperative Minister: Cooperatives must not merely serve as lending institutions
Minister of Cooperatives Ferry Juliantono has emphasised that cooperatives must not only serve as places for the public to borrow money, but must also act as a platform to build the economic strength of members through increased business capacity, productivity, and market access.
During a visit to the Balo’ta Savings and Loan Cooperative (KSP Balo’ta) in North Toraja Regency, South Sulawesi, on Sunday, Ferry stated that cooperatives must provide broader benefits to members, ranging from providing access to financing and increasing business capacity to expanding markets, enhancing productivity, and creating added value.
According to him, KSP Balo’ta has demonstrated these practices through coaching activities for members, including farmers, as well as the development of pilot coffee plantations.
“We must not be satisfied with merely helping farmers obtain loans. We must ensure farmers become more productive, more prosperous, and possess greater bargaining power,” he stated in a ministry press release.
Nevertheless, Ferry also expressed his support for the development of KSP Balu’ta, which has been conducting savings and loan activities alongside member empowerment.
Meanwhile, the Chairman of KSP Balo’ta, Dedi Bongga, noted that the cooperative’s assets reached IDR 1.9 trillion as of July 2026, representing a 609 per cent increase compared to 2014. He mentioned that KSP Balo’ta currently serves approximately 15,000 members.
On the same occasion, the Regent of North Toraja, Frederik Viktor Palimbong, reported that North Toraja has approximately 49 active cooperatives following its regional expansion.
Furthermore, the construction of the Merah Putih Village/Sub-district Cooperatives (KDKMP) has reached 100 per cent completion for 19 units, while four other units are still under construction with progress ranging from 60 to 90 per cent. Out of a target of 151 KDKMP, the local government has been requested to oversee the construction process optimally.