Cooperatives Minister: Existing Cooperatives Better Suited for Mining than Village Units
Minister of Cooperatives (Menkop) Ferry Juliantono has explained the expansion of the cooperative role, which can now encompass mining, energy and processing industries. According to him, this expansion should ideally be carried out by cooperatives other than the Red-and-White Village Cooperatives (KDMP).
“Ideally it should not be the Red-and-White Village and Neighbourhood Cooperatives,” Ferry told reporters at the Presidential Palace complex in Jakarta on Wednesday (15/7/2026).
Ferry explained that the Ministry of Cooperatives does not only foster KDMP, but also thousands of cooperatives that have long been operating across various business sectors. According to him, these existing cooperatives have a business scale better suited to managing strategic sectors such as mining.
“The Ministry of Cooperatives does not only handle the Red-and-White Village and Neighbourhood Cooperatives — there are existing cooperatives that have all along been active in the production sector, the distribution sector, and even in industry and financial institutions,” he continued.
Nevertheless, Ferry said there is no prohibition should a village cooperative wish to participate in managing the mining sector. However, in his view, mine management requires substantial business capacity, making it more appropriate for cooperatives that have already developed.
“It’s certainly possible. But in our view, ideally it should be cooperatives that are not only village cooperatives, because their size is larger,” he said.
Ferry added that the legal basis for cooperative involvement in managing the mineral and coal sector is already set out in the Mineral and Coal Law (Minerba). Therefore, the government does not need to issue new regulations to open the door for cooperatives to enter the sector.
“The Minerba Law already provides that cooperatives may manage mines and minerals. Furthermore, we already have a partnership with PT Aginas Palma Nusantara to manage what is known as plasma schemes in oil palm plantations, in the form of a cooperative business entity,” he said.