Video: Minister Ferry and the Strategy to Make Cooperatives an Economic Growth Engine

Minister of Cooperatives Ferry Juliantono has affirmed the government of President Prabowo’s commitment to promoting cooperative enterprises as a driver of national economic growth. The Ministry of Cooperatives continues to encourage cooperative enterprises to move quickly in optimising their role in the economy. This step is being implemented through the rebranding of cooperatives to appeal to all levels of society, including Gen Z and Millennials. In addition, governance improvements are being pursued through digitalisation and legal reforms via the Cooperatives Law to make it more adaptive in addressing various challenges facing cooperatives. The business scope of cooperatives is also being expanded to include the mining and minerals sector, as well as plantations and the environment. This is expected to increase the role of cooperatives in the GDP, which currently stands at only 1%. However, challenges remain regarding pessimism about the potential for developing modern, contemporary cooperatives and increasing the role of the younger generation. Out of approximately 130,000 cooperatives in Indonesia, the Ministry of Cooperatives is strengthening its database to explore the business potential of cooperatives in the regions so that they are not solely focused on the credit sector, enabling them to move up a class. To drive cooperative development, including the Merah Putih Village Cooperatives, the Ministry of Cooperatives has proposed an additional budget of IDR 1.34 trillion.