Cooperative Minister Ferry Drives Development of Red-White Sharia Village Cooperatives
Jakarta — The Ministry of Cooperatives (Kemenkop) is promoting the development of sharia-based cooperatives, including through the Red-White Village Cooperative programme. Minister of Cooperatives and Small and Medium Enterprises Ferry Juliantono stated that developing sharia-based cooperatives represents an important component in supporting the direction of national development policy.
The objective is to strengthen the national Islamic economic and financial ecosystem inclusively, sustainably, and equitably.
“As an example of its implementation, sharia-based cooperative savings and loan units are being developed in villages,” Ferry said in a statement on Saturday (14 March 2026).
The development of sharia cooperatives is being pursued through a Memorandum of Understanding (MoU) between the ministry and Al Jamiyatul Washliyah to develop business activities through cooperatives and serve communities across various sectors, particularly education and economics, as an effort to improve community welfare whilst building communities that are good, healthy, intelligent, and productive.
Ferry stated that Red-White Village Cooperatives have the potential to serve as a sharia economics education facility for members and surrounding communities, which aligns with one of Al Jamiyatul Washliyah’s missions of building an Islamic and equitable economy and social welfare institutions.
Ferry welcomed Al Jamiyatul Washliyah’s active role in supporting Red-White Village and District Cooperatives, a national movement to establish community-based cooperatives in every village.
“We are confident that with their remarkable network and track record, this collaboration between Al Jamiyatul Washliyah will deliver tangible impacts on improving village community welfare whilst building a strong, sustainable, and equitable foundation for the local economy,” Ferry said.
On this occasion, Minister Ferry Juliantono signed the MoU directly at the Ministry of Cooperatives office in Jakarta on Friday (13 March 2026), accompanied by Deputy Minister of Cooperatives Farida Farichah and Ministry Secretary Ahmad Zabadi, along with deputies and other officials.
Ferry stated that the cooperation to be established will first involve training, then business development and other mutually beneficial cooperative activities.
“For the Ministry of Cooperatives, we are indeed open to activities undertaken by various religious organisations, including what we are now doing with Jamiyatul Washliyah as well as other community and social organisations, because for us at the Ministry of Cooperatives, cooperative activities are a constitutional mandate and a mandate of the 1945 Constitution,” he said.
Ferry added that the cooperation will also focus on strengthening institutional capacity and developing cooperative enterprises and cooperative management models, particularly sharia-based cooperatives. This includes literacy, education, extension services, and capacity building for human resources. Additionally, Ferry stated, there will be advances in digitalisation to strengthen institutional capacity and develop cooperative enterprises, as well as strengthen networks and partnerships.
Ferry expressed hope that through synergy between government policy and the strength of the Al Jamiyatul Washliyah community, Indonesia can create self-reliant, inclusive, and progressive villages.
Ferry added that cooperative activities are not solely the responsibility of the Ministry of Cooperatives, but represent a national movement, meaning all elements of society have the right and indeed an obligation to support cooperatives, as cooperatives are a mandate from the nation’s founders and a constitutional mandate.
“The philosophy of cooperatives is fundamentally based on the principles of kinship, togetherness, and mutual assistance, and these values are what we should now prioritise again,” Ferry said.
Al Jamiyatul Washliyah General Chair Masyhuril Khamis stated that the organisation, which he leads, was founded in Medan 95 years ago. Throughout its history, the organisation has focused on social and religious activities, establishing schools, Islamic boarding schools, and universities. However, over the past five years, it has also moved into the economic sector and now has several economic activity institutions, including cooperatives.
“Alhamdulillah, we have already discussed this. Therefore, we hope this collaboration can truly be implemented in line with the government’s extraordinary vision,” Masyhuril said.