Cooperatives: New Force in Pancasila Economic Transformation

Minister of Cooperatives Ferry Juliantono attended the 2026 Pancasila Day Commemoration Ceremony alongside President Prabowo Subianto and the entire Merah Putih Cabinet at the Pancasila Building in Jakarta. Prabowo stressed that Pancasila serves as Indonesia’s firm foundation for uniting diversity, strengthening communal spirit, achieving social justice, and maintaining national peace and unity. Prabowo also reaffirmed the government’s efforts to undertake a major transformation of the national economic system. In his address, he called for grounding the Pancasila Economy and revitalising cooperatives as a primary pillar in poverty alleviation. Prabowo urged all national elements to honestly assess current economic realities, highlighting that recent decades of growth have not been evenly distributed or fairly enjoyed by all citizens. He also stressed that the founders’ aspirations enshrined in Article 33 of the 1945 Constitution must be realised through strengthening cooperatives as collective enterprises based on familial principles. Cooperatives must rise and become the primary instrument to lift citizens from poverty and powerlessness. In line with this, the government continues implementing development transformations rooted in Pancasila values, positioning villages as new economic growth centres, placing citizens as the main drivers of development, and strengthening national economic resilience through cooperatives and village economies. “It is clearly stipulated that Indonesia’s economy is structured as collective enterprises based on familial principles. Therefore, cooperatives must be strengthened, cooperatives must rise! Cooperatives are one of the tools to lift our people from poverty and powerlessness,” Prabowo stated in a written statement on Monday, June 1, 2026. As part of supporting this transformation, the government has prepared strategic steps. Alongside strengthening cooperatives and village economies, it has implemented strict policies on natural resource management (SDA). Closing his address, Prabowo reiterated the Proclamation’s message for Indonesia to stand on its own feet (berdikari). Prabowo is optimistic that if Pancasila is genuinely implemented, especially in the economic sphere, Indonesia will grow into a strong, respected nation capable of contributing to global peace. “Let us safeguard Pancasila, practise Pancasila, and realise an Indonesia that is just, prosperous, sovereign, and dignified,” Prabowo said. In response to Prabowo’s speech and directives, Cooperatives Minister Ferry Juliantono stated his ministry’s full readiness to realise the Pancasila Economy’s aspirations. Ferry affirmed the ministry would accelerate strengthening this people’s economy sector, notably through optimising the Red and White Village/Urban Cooperatives (KDKMP) programme. “President Prabowo’s remarks constitute both an ideological and operational mandate for us. The Cooperatives Ministry is ready to implement these directives on the ground,” Ferry said. “Through the KDKMP programme, we will strengthen grassroots economic foundations, ensure villages become new growth centres, and position cooperatives as the primary economic defence for citizens,” he added. The event was also attended by former President Megawati Soekarnoputri (fifth president and BPIP Steering Council Chair), Vice President Gibran Rakabuming, former Vice Presidents Jusuf Kalla (10th and 12th terms) and Ma’ruf Amin (13th term), MPR Speaker Ahmad Muzani, Merah Putih Cabinet ministers, and DPD Chair Sultan Najamudin.