Muhaimin Highlights Strategic Role of Cooperatives in Community Empowerment

Coordinating Minister for Community Empowerment Abdul Muhaimin Iskandar stated that cooperatives play a strategic role in the community empowerment agenda. “Cooperatives are not only a vehicle for collective enterprise, but also an instrument to open access to financing, strengthen community businesses, increase the added value of local products, and expand economic opportunities down to the village level,” Muhaimin said in Jakarta on Sunday. He made the remarks while attending the peak celebration of the 79th National Cooperative Day, themed “Empowered Cooperatives, Glorious Indonesia”. The Coordinating Ministry for Community Empowerment is committed to continuing to strengthen synergy across ministries, agencies, regional governments, and various stakeholders. This aims to ensure that cooperative development proceeds in line with community empowerment programmes, poverty alleviation, welfare improvement, and economic development based on local potential. Muhaimin noted that the momentum of the 79th National Cooperative Day serves as a reminder that cooperatives remain relevant as a pillar of Indonesia’s people-based economy. “With the spirit of mutual cooperation and collaboration, strengthening cooperatives is expected to create a society that is increasingly independent, productive, and prosperous,” he said. President Prabowo Subianto, who also gave directives at the event, affirmed that cooperatives are a tangible manifestation of the people’s economy envisioned by the nation’s founders. “Cooperatives are the tool of the weak, the tool of the poor. But like a broomstick, one stick is weak, yet bound together they become strong,” Prabowo stated. He further asserted that strengthening cooperatives does not mean weakening other economic actors. The government intends to build a national economic ecosystem where cooperatives, micro, small, and medium enterprises, the private sector, state-owned enterprises, and regional-owned enterprises mutually reinforce one another. The President stressed that Indonesia’s economic growth must start from the villages so that the benefits of development are felt equally by the people. “Our economy will rise from the villages and sub-districts, and the money will stay there. We will reverse the flow; the people’s wealth will be returned to them,” Prabowo said. As part of this strategy, the government is currently establishing Red and White Village Cooperatives in every village and sub-district across Indonesia. These cooperatives are projected to become integrated community economic service centres, offering services ranging from savings and loans, staple goods shops, distribution of subsidised goods, village pharmacies, warehousing, to agricultural produce storage facilities.