Minister of Cooperatives Supports Islamic Boarding School Cooperatives for Economic Independence

Minister of Cooperatives (Menkop) Ferry Juliantono has committed to overseeing the development of cooperatives within Islamic boarding schools (pondok pesantren) under the Indonesian Dakwah Pesantren Council (MPDI), as they are considered to have the potential to foster economic independence within these religious educational institutions. “Islamic boarding schools possess a strength that is an extraordinary asset due to their long historical value, therefore economic independence in Islamic boarding schools is very important, one of which is through the development of Islamic boarding school cooperatives,” Ferry said during the MPDI National Dialogue at the Daarul Ukhuwwah Islamic Boarding School in Malang Regency, East Java, on Saturday. As a form of support, the Ministry of Cooperatives is ready to assist with financing for boarding school cooperatives through the Revolving Fund Management Institution (LPDB). Ferry therefore requested that every Islamic boarding school that already has a cooperative ensure the details of their respective business activities. He noted that MPDI has established a secondary cooperative that can act as an offtaker for products to be marketed through the primary cooperatives owned by the boarding schools. Furthermore, Ferry stated that any product from primary cooperatives under MPDI’s auspices could become a supplier for the ‘Koperasi Desa/Kelurahan Merah Putih’ (Red and White Village Cooperatives). “So, a good ecosystem needs to be built, because I believe in the potential strength of Islamic boarding school cooperatives,” he said. Meanwhile, MPDI General Chair KH Ayi Abdul Rosyid said that several boarding schools have already established cooperatives, but their condition is currently not yet well-developed. MPDI oversees around 300 Islamic boarding schools across Indonesia, of which only about 10 percent, or roughly 30 schools, have established cooperatives. Therefore, through this agenda, his party seeks to engage the government’s role in strengthening the governance and development of Islamic boarding school cooperatives. Regarding the marketing opportunity for boarding school cooperative products, he stated that this will continue to be communicated with the relevant ministry. “We encourage boarding schools to have products to be collaborated with the Village Cooperatives,” he said.