Government to empower 18 million aid beneficiaries through village co-operatives
“All social assistance beneficiaries are encouraged to become Red and White Village Cooperatives’ members as part of efforts to empower them and increase economic independence,” Social Affairs Minister Saifullah Yusuf said following a meeting with the Minister of Cooperatives in Jakarta on Monday.
He explained that based on the meeting’s outcome, working-age beneficiaries would be prepared for employment within the cooperatives, taking on roles such as drivers or managers.
Meanwhile, those who are less productive or elderly will be optimized as cooperative members.
Yusuf further said that parents of Sekolah Rakyat (People’s School) students—who are largely social assistance recipients—are also being targeted for empowerment through the cooperatives.
“We will certainly provide the necessary legal framework, including mechanisms for principal savings and membership contributions,” he said.
While not yet finalized, he revealed that preliminary studies suggest principal savings of Rp50,000 (US$2.9) to Rp100,000, which can be paid in installments. Monthly mandatory membership dues are estimated to range between Rp5,000 and Rp10,000.
“We are also preparing a regulation allowing a portion of social assistance funds to be used for initial membership contributions,” he added.
The minister emphasized that the program is part of a strategy to bolster the welfare of beneficiaries and foster economic independence. This is aligned with the Presidential Instruction Number 8 of 2024 and the Presidential Instruction Number 9 of 2024.
The Indonesian government initiated the Red and White Village Cooperatives as hubs of economic and social services in village communities, offering savings, loans, and clinic services, among others.
With over 80,000 Red and White Village Cooperatives established nationwide, the Ministry of Cooperatives is now accelerating the construction of outlets, warehouses, and the infrastructure necessary to support their operations.
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Translator: M Riezko, Raka Adji