Minister: Mining Management Not Exclusive to 'Red and White' Village Cooperatives
There are existing cooperatives that have long been active in the production sector, the distribution sector, and even in industry and financial institutions.
Jakarta (ANTARA) - Cooperatives Minister Ferry Juliantono has affirmed that the management of mines by cooperatives need not be carried out by the Red-and-White Village/Sub-district Cooperatives (KDMP).
Speaking to reporters before attending a limited meeting with President Prabowo Subianto at the Presidential Palace complex in Jakarta on Wednesday, Ferry said the role would be more appropriately carried out by cooperatives that already have experience and business capacity in the production or industrial sectors.
He explained that the Ministry of Cooperatives does not only foster the Red-and-White Village Cooperatives, but also thousands of cooperatives that have long operated across various business sectors.
“When it comes to mining, or managing oil palm, it doesn’t have to be a village cooperative. So, the Ministry of Cooperatives doesn’t only handle the Red-and-White Village/Sub-district Cooperatives; there are existing cooperatives that have long been active in the production sector, the distribution sector, and even in industry and financial institutions,” said Ferry.
He said village cooperatives still have the opportunity to manage mines if they meet the requirements. However, large-scale business activities such as mining would be more suitably run by cooperatives that already possess capacity and experience.
“It’s possible. But in our view, it should ideally be cooperatives beyond just village cooperatives, because the scale is large,” he said.
Ferry also affirmed that the provisions governing the involvement of cooperatives in mining management have been regulated under the Minerals 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 role of cooperatives in oil palm plantation management.
Ferry said his side had established a partnership with PT Agrinas Palma Nusantara to manage plasma plantations through a cooperative-form business entity.
He again stressed that the management of such large-scale businesses should preferably be carried out by cooperatives with a proven track record and business capability, rather than being focused on the Red-and-White Village Cooperatives, which were established to strengthen the economy at the village level.
“Ideally, it should indeed not be the Red-and-White Village/Sub-district Cooperatives,” he added.