Indonesia aims to pass new Cooperatives Law this year

“The current law can no longer be used. It is no longer relevant,” Ferry said at a seminar hosted by the Great Institute in Jakarta on Tuesday.

The Indonesian Institute of Cooperatives, or Ikopin University, is also planned to become a Public Service Agency under the Cooperatives Ministry to strengthen human resources in the sector.

The move is intended to prepare professional cooperative managers, including for Red and White Village and Urban Ward Cooperatives, or KDKMP, being established nationwide, Ferry said.

The government also plans to expand cooperatives into strategic sectors, including potentially allowing them to manage community-owned and idle oil wells in various regions.

Ferry said the government is also considering reviving a cooperative bank to strengthen the country’s cooperative ecosystem.

The government wants to change perceptions that cooperatives are limited to small businesses or savings and loan services, Ferry said, adding they could expand into large-scale industries.

“Cooperatives are not limited to small businesses or savings and loan services. Like cooperatives worldwide, they can operate in major economic sectors,” Ferry said.

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Translator: Shofi, Azis Kurmala