Indonesian Political, Business & Finance News

Cooperatives in Central Java Hoped to Strengthen Community Economy

| Source: DETIK Translated from Indonesian | Economy
Cooperatives in Central Java Hoped to Strengthen Community Economy
Image: DETIK

Central Java Governor Ahmad Luthfi stated that cooperatives must be present as hubs for supporting the people’s economy, especially to encourage micro-entrepreneurs to advance to the next level. According to him, the role of cooperatives as a healthier financing alternative for the community.

“The board has been formed. With this new board, you can make a difference, so that cooperatives in Central Java become the foundation for community prosperity,” said Luthfi in a written statement on Tuesday (14/4/2026).

This was conveyed by Luthfi at the Inauguration of the Leadership of the Indonesian Cooperative Council (Dekopin) for the Central Java Provincial Region and the 2026 Regional Working Meeting at Wisma Perdamaian, Semarang.

Based on data from the Cooperative and SME Office, Central Java has 19,022 active cooperatives with more than 6.8 million members. The total assets of cooperatives in Central Java reach Rp60.13 trillion with a business volume of Rp43.78 trillion, and returns to members amounting to Rp1.16 trillion.

Alongside this, there is currently the Merah Putih Village/Urban Ward Cooperative (KDKMP). Of the 8,523 KDKMPs in Central Java, 6,271 units are operational and 1,466 units already have physical outlets as centres of economic activity.

Luthfi hopes that the Merah Putih Cooperatives can quickly move to strengthen village economies. In the future, KDKMPs are expected to develop into logistics distribution centres and local food granaries.

“This is important because it strengthens the economy in villages,” he said.

On that occasion, the Central Java Dekopin Regional Branch was also encouraged to take a more concrete role in transforming human resources and digitalisation, strengthening businesses and networks, as well as advocacy and protection of cooperatives.

“Make cooperatives a collective movement to build welfare and justice,” said Luthfi.

Then, Cooperatives Minister Ferry Juliantono stated that the Central Java Dekopin Regional Branch is expected to move in sync with the Ministry of Cooperatives to revive cooperative business activities in the region.

“This mandate is not light because Dekopin must breathe in unison with the Ministry of Cooperatives,” he said.

He noted that Central Java is one of the prominent regions in cooperative development, particularly in accelerating the formation of legal entities for KDKMPs.

According to Ferry, strengthening cooperatives now must enter a more concrete stage, namely the operationalisation of KDKMPs and the development of business collaborations that directly impact the community’s economy. One of them is by prioritising Central Java local MSME products to enter village/urban ward cooperative outlets.

Ferry added that the cooperative movement also needs to enter the daily needs production sector and post-production to make its economic effects broader. He assessed that cooperative development can be an entry point to revive small industries in the region.

“We can learn to make soap, shampoo, detergent, even sambal ourselves. That can revive small industries and drive economic growth in Central Java as well as become breakthroughs to solve various problems in society,” said Ferry.

Ferry also hopes that the Central Java Dekopin Regional Branch can become an example of modern cooperatives whose benefits are widely felt.

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