Ministry of Cooperatives pushes for more professional cooperatives in Banten

The Ministry of Cooperatives (Kemenkop) is pushing the management of the Indonesian Cooperative Council for the Banten Region (Dekopinwil Banten) to create professional cooperative management and increase youth involvement to address current economic challenges. “In this era, the only way to compete is to be able to adapt. This adaptation means cooperatives must be run professionally with clear business units and profit sharing,” said Deputy Minister of Cooperatives Farida Farichah during the inauguration and swearing-in of the Dekopinwil Banten board for the 2026-2030 term in Serang City, Banten, on Friday. Farida explained that under the current administration, cooperatives are receiving special attention through the Koperasi Desa/Kelurahan Merah Putih (Red and White Village/Sub-district Cooperative) programme. She emphasised that the programme is a concrete effort to restore a mutual cooperation-based economy in accordance with Article 33 of the 1945 Constitution, and its management is the responsibility of all elements of society, not just the government. She further highlighted four main challenges still facing cooperatives in Indonesia. First, conventional governance that is too focused on the savings and loan sector. Second, a regeneration crisis due to low interest among young people. Third, weak managerial capacity of human resources. Fourth, a lag in digital literacy. To overcome these issues, the Ministry of Cooperatives has mandated that Dekopinwil Banten prioritise programmes for strengthening human resource capacity, professional governance, and a massive cooperative literacy movement, especially targeting the youth. “The younger generation will not be interested without prior literacy. They must be educated that a cooperative is a legal business entity equal to a limited liability company, and can manage business in any real sector, be it mining, agriculture, or fisheries,” she stressed. Farida expressed hope that the new board of Dekopinwil Banten can serve as an extension of the government in promoting the Red and White Cooperative programme, so that this people-based economic entity can be nurtured and grown together.