Deputy minister urges professional management of village co-ops

She emphasised that cooperatives must adhere to good governance principles, including orderly administration, transparent financial reporting, and clear and accountable oversight mechanisms.

“No business becomes a giant overnight. Every large enterprise starts small. They grow because they earn the trust of their members and the public,” she said during a visit to the Selumit Red and White Village Cooperative in Tarakan, North Kalimantan, on Sunday (February 15).

According to Farichah, public trust is a cooperative’s primary asset. Therefore, board members are required to uphold high standards of integrity, as cooperatives need measurable, performance-based management practices.

She added that professional management is essential to building trust and is also a key requirement for banks to extend capital loans.

Similarly, if capital is sourced from members, its management must be transparent as part of sound professional practice.

Farichah noted that the Ministry of Cooperatives provides training for managers and supervisors of village cooperatives to ensure professional governance.

She also highlighted that every village has economic potential that can be developed for the benefit of its residents. Village cooperatives, therefore, need to identify and optimise the specific potential within their respective areas.

“We want village potential to be managed by local residents,” she said.

Farichah further stated that the Ministry of Cooperatives has issued Ministerial Regulation No. 9 of 2025 on the disbursement of loans from the Cooperative Revolving Fund Management Agency (LPDB) for cooperatives requiring funding.

She assured that any village cooperative in need of capital may apply for financing through the agency.

The Indonesian government initiated the Red and White Village Cooperatives as centres of economic and social services in rural communities, providing savings and loan services, clinics, and other facilities.

With more than 80,000 Red and White Village Cooperatives established nationwide, the ministry is accelerating the development of outlets, warehouses, and supporting infrastructure to strengthen their operations.