Deputy Minister of Cooperatives: Many Gen Z Unaware of Cooperatives, Despite Their Importance to the Economy

Jakarta, CNBC Indonesia - Cooperatives, once integral to community life, are increasingly feeling foreign to the younger generation. Deputy Minister of Cooperatives Farida Farichah revealed that many Gen Z individuals are no longer familiar with cooperatives, despite their vital role in the national economy.

Farida stated that over the past two to three decades, cooperatives have rarely been a topic of discussion, either in public spaces or among young people. As a result, the image of cooperatives is perceived as outdated and irrelevant to current developments.

Yet cooperatives represent one of the pillars of the economy with a strategic role in building community welfare, particularly at the grassroots level.

“We have not talked about cooperatives for a long time. Even Gen Z children might not know what a cooperative is, because they are considered conventional and not adaptive,” said Farida at the Top Women Fest 2026 last weekend, on Saturday (25/4/2026).

However, this situation is beginning to change. Farida mentioned that cooperatives are once again in the spotlight with the emergence of national strategic programmes that promote community-based economic strengthening.

One of them is the Merah Putih Village Cooperatives programme initiated by the government to bolster the economy at the village and sub-district levels. She said this programme serves as an important momentum to revive the role of cooperatives in Indonesia, while reintroducing them to the younger generation.

Nevertheless, the challenges faced are not insignificant. Farida revealed that cooperative regulations in Indonesia still rely on an old law that is no longer relevant to contemporary developments.

“Our cooperatives are still using the 1992 law. This is certainly a major challenge because it does not yet accommodate digital developments,” she explained.

She emphasised that the government is currently pushing for regulatory updates so that cooperatives can be more adaptive, modern, and aligned with current economic needs. Farida reminded that cooperatives are not merely an ordinary business model, but part of the constitutional mandate.

In Article 33 of the 1945 Constitution, cooperatives are mentioned as one of the forms of enterprise that form the basis of the national economy, and she hopes that all levels of society, including the younger generation, can once again recognise and understand the role of cooperatives.

“This is a legacy from the nation’s founders that we must preserve and develop,” she asserted.