Minister: Mining Management Not Exclusive to 'Red and White' Village Cooperatives

Jakarta (ANTARA) - Minister of Cooperatives Ferry Juliantono has stressed that the management of mining operations by cooperatives does not have to be carried out by the Koperasi Desa/Kelurahan Merah Putih (Red and White Village/Sub-district Cooperatives). Speaking before a limited meeting with President Prabowo Subianto at the Presidential Palace complex in Jakarta on Wednesday, Ferry said this role is more appropriately undertaken by cooperatives that already possess experience and business capacity in the production or industrial sectors. He explained that the Ministry of Cooperatives does not only oversee the Red and White Village Cooperatives but also thousands of other cooperatives that have long operated in various business sectors. “The ones managing mining and palm oil do not have to be village cooperatives. The Ministry of Cooperatives does not only handle the Red and White Village Cooperatives; there are existing cooperatives that have been operating in the production, distribution, and even industrial and financial institution sectors,” Ferry said. He noted that village cooperatives still have the opportunity to manage mines if they meet the requirements. However, for large-scale business activities like mining, it is more suitable for cooperatives that already possess the necessary capacity and experience. “They can, but in our opinion, it is better if it is not just village cooperatives, because the size of the operation is large,” he stated. Ferry also affirmed that provisions regarding cooperative involvement in mining management are already regulated in the Mineral and Coal Mining Law, providing a legal basis for cooperatives to participate in the sector. Beyond mining, the Ministry of Cooperatives is also encouraging a stronger role for cooperatives in managing palm oil plantations. Ferry mentioned that his ministry has established cooperation with PT Agrinas Palma Nusantara to manage plasma plantations through cooperative business entities. He reiterated that the management of such large-scale enterprises should ideally be carried out by cooperatives with a proven track record and capability, rather than being focused on the Red and White Village Cooperatives, which were formed to strengthen the economy at the village level. “It is better if it is not the Red and White Village Cooperatives,” he added.