Cooperatives Minister Says Not All Cooperatives Can Manage Mines: Palm Oil Operators Need Not Be 'Red and White' Village Co-ops

Minister of Cooperatives Ferry Juliantono has stressed that the management of mining operations by cooperatives does not have to be carried out by the Red and White Village/Sub-district Cooperatives (KDMP). Ferry stated that this role is more appropriately undertaken by cooperatives that already possess business experience and capacity in the production or industrial sectors. He explained that the Ministry of Cooperatives does not only provide guidance to the Red and White Village Cooperatives, but also to thousands of cooperatives that have long been operating in various business sectors. ‘Those managing mines or palm oil do not have to be village cooperatives. The Ministry of Cooperatives does not only look after the Red and White Village/Sub-district Cooperatives; there are existing cooperatives that have been operating in the production, distribution, and even industrial and financial institution sectors,’ Ferry told reporters at the Presidential Palace Complex in Jakarta on Wednesday, 15 July 2026. He said village cooperatives still have the opportunity to manage mines if they meet the requirements. However, for large-scale business activities such as mining, it is more appropriate for them to be run by cooperatives that already have the capacity and experience. ‘It is possible. But in our opinion, it is better if it is not just village cooperatives, because the size is large,’ he said. Ferry also emphasised that provisions regarding the involvement of cooperatives in mining are already regulated in the Mineral and Coal Law. Thus, cooperatives have a legal basis to participate in managing the mining sector. Apart from the mining sector, the Ministry of Cooperatives is also encouraging a stronger role for cooperatives in managing palm oil plantations. Ferry mentioned that his ministry has established cooperation with PT Agrinas Palma Nusantara to manage plasma plantations through cooperative business entities. He reiterated that the management of such large-scale businesses should be carried out by cooperatives with a proven track record and capability, rather than being focused on the Red and White Village Cooperatives, which were formed to strengthen the economy at the village level. ‘It is better if it is not the Red and White Village Cooperatives,’ he added.