Village Cooperatives Urged to Become Sharia-Based Microfinance Institutions

Cooperatives Minister Ferry Juliantono is encouraging the Merah Putih Village Cooperative to become a sharia-based microfinance institution through support from the Sharia Economic Community (MES).

“We hope that sharia banking in West Java will create a microfinance model that can be used by village cooperatives. In this way, real economic activities can grow sustainably,” he said in a written statement on Saturday, 11 April 2026.

The statement was delivered by Ferry at the West Java MES seminar on Saturday. On that occasion, Ferry emphasised that the direction of sharia economic development must focus more on the real sector, one of which is through strengthening cooperatives.

Ferry also encouraged integration between the Merah Putih Cooperative and MES. This is because the cooperative has several outlets that directly touch the real sector.

The Gerindra politician stated that the Merah Putih Cooperative has three main functions: distributing people’s basic needs including government-subsidised goods, acting as an offtaker for village products, and channelling central government programmes.

With these functions, Ferry encouraged West Java MES to actively collaborate with the Merah Putih Cooperative through strengthening microfinance and filling modern retail outlets with products produced by village communities.

According to him, integration between cooperatives and sharia economy will open up great economic opportunities for the community. In addition, Ferry said that village products can be marketed more widely with sharia financing support.

He also requested that West Java MES make the Merah Putih Cooperative a priority for sharia economic development for the next 25 years.

With this support, Ferry is optimistic that the Merah Putih Cooperative will become a centre for distributing halal and sharia products, while strengthening the sharia-based economic ecosystem, especially in West Java.