Minister Ferry: Mining Cooperatives Should Have Proven Capacity, Not Just Village Units

Minister of Cooperatives Ferry Juliantono has stated that the management of mining concessions by cooperatives does not necessarily have to be carried out by the Koperasi Merah Putih. He explained that this role is more appropriately undertaken by cooperatives that already possess experience and business capacity in the production or industrial sectors. Ferry noted that the Ministry of Cooperatives does not only foster Koperasi Merah Putih, but also thousands of other cooperatives that have long been operating across various business sectors. “Those that manage mining or palm oil do not have to be village cooperatives. There are existing cooperatives that have been engaged in production, distribution, and even the industrial and financial sectors,” Ferry stated. He further emphasised that large-scale business management should ideally be handled by cooperatives with a proven track record and business capability, rather than Koperasi Merah Putih, which was specifically established to strengthen the village economy. “It is best if it is not Koperasi Merah Putih,” he said. Ferry also confirmed that the involvement of cooperatives in mining management is legally stipulated in the Mineral and Coal Mining Law, providing a legal basis for cooperatives to participate in the sector. Beyond mining, the ministry is also pushing for a stronger role for cooperatives in managing palm oil plantations, having established cooperation with PT Agrinas Palma Nusantara to manage plasma plantations through cooperative business entities.