Cooperatives Bill Discussions 80% Complete, Says Ministry

Jakarta (ANTARA) — The Ministry of Cooperatives (Kemenkop) said discussions on the Draft Cooperatives Bill had reached about 80% and were targeted for completion this year.

Kemenkop Secretary Ahmad Zabadi, quoted in a ministry press statement in Jakarta on Tuesday, said preparation of the bill was proceeding alongside studies and research by the Legal Policy Strategy Agency (BSK Hukum) at the Ministry of Law. The findings were then followed up through an inter-ministerial harmonisation process.

“Thank God, discussions are now 80% complete. God willing, they will be finished this year,” Zabadi said at a cooperation agreement signing between Kemenkop and BSK Hukum in Jakarta.

He said work on the Cooperatives Bill began in 2023 in collaboration with academics.

According to Zabadi, new regulations are needed to strengthen cooperatives’ role as a means of empowering communities, promoting economic equality and improving welfare. Cooperatives should not be viewed solely as business entities, but also as part of efforts to realise a people-centred economy.

“Cooperatives must be seen as an instrument for empowering communities, strengthening the economy, promoting equality and business opportunities, and creating welfare based on fairness,” he said.

Zabadi also referred to the Red and White Village/Sub-district Cooperatives (KDKMP) programme as a national strategic initiative requiring strong governance and support from various parties for its implementation.

He expressed hope that studies and policy discussions involving various stakeholders would help guide the government’s strategic policies, particularly the development of KDKMP.

The Cooperatives Bill, which is being discussed with the House of Representatives (DPR RI), is being prepared to replace Law No. 25 of 1992 on Cooperatives.

Proposals for inclusion in the bill include establishing a deposit insurance agency for cooperatives and a supervisory authority for the sector.