Gerindra Has No Issue with Kopdes Merah Putih Managing Mines: As Long as It Complies with Regulations

Jakarta – Gerindra Party spokesperson Bahtra Banong has responded to the decision allowing the Kopdes Merah Putih (KDMP) village cooperative programme to manage mining businesses. He explained that the basic concept of a cooperative is to generate benefits for its members. In this context, cooperatives are free to manage any business as long as it complies with prevailing regulations. “We have heard that it is permitted. The basic concept of a cooperative is so that the management and its members can feel the benefits of the cooperative’s existence,” Bahtra said at the Parliament Complex in Central Jakarta on Thursday, 16 July 2026. “The cooperative can manage anything, as long as it is in accordance with the rules,” he stated. The Deputy Chairman of House Commission II added that business management by cooperatives must improve the welfare of its members and management. “So that the direct impact of the cooperative’s existence, especially the KDMP, can be felt by the local village community,” Bahtra explained. Previously, Cooperatives Minister Ferry Juliantono stated that the Kopdes Merah Putih is allowed to manage mining businesses. “Yes, it is allowed,” Ferry said at the Parliament Complex in Central Jakarta on Wednesday, 15 July 2026. He explained that the KDMP units permitted to manage mines are those established in mining areas. “In mining areas, in their village areas,” Ferry clarified. According to him, cooperatives outside the KDMP programme are also permitted to manage mining businesses. This provision is regulated in the Mineral and Coal Law, where cooperative business entities can obtain a Special Mining Business Permit Area (WIUPK) covering 2,500 hectares. “Managing a mine can be entered into by cooperative businesses. The Mineral and Coal Law also states that cooperative business entities may manage mining and minerals,” Ferry said. Furthermore, cooperative business entities are also allowed to establish banks and crude palm oil (CPO) factories. “Cooperatives can also establish CPO factories and banks; they are allowed. There is nothing prohibiting it,” Ferry concluded.