Minister Ferry: Mining Cooperatives Should Have Proven Capacity, Not Just Village Units
Minister of Cooperatives Ferry Juliantono has stated that the management of mines by cooperatives does not have to be carried out by Red and White Cooperatives. He explained that this role is more appropriately held by cooperatives that already possess experience and business capacity in the production or industrial sectors.
According to him, the Ministry of Cooperatives does not only foster Red and White Cooperatives, but also thousands of cooperatives that have long operated across various business sectors. “Those managing mines or oil palm plantations do not have to be village cooperatives. There are existing cooperatives that have all along been active in production, distribution, and even the industrial and financial institution sectors,” said Ferry, as quoted by Antara on Wednesday, 15 July 2026.
He said the Red and White Cooperatives still have the opportunity to manage mines if they meet the requirements. However, large-scale business activities such as mining are more suitably run by cooperatives that already have capacity and experience.
Ferry also stressed that provisions on cooperative involvement in mining management have already been regulated under the Mineral and Coal Law (Minerba). Cooperatives therefore have a legal foundation to participate in managing the mining sector.
Beyond the mining sector, the Ministry of Cooperatives is also encouraging the strengthening of the cooperative role in oil palm plantation management. Ferry said a partnership has been established with PT Agrinas Palma Nusantara to manage plasma plantations through a cooperative-form business entity.
The Gerindra Party politician emphasised that large-scale business management should be carried out by cooperatives with an established track record and business capability, not the Red and White Cooperatives, which were established to strengthen the economy at village level. “Ideally, it should indeed not be the Red and White Cooperatives,” he said.