There are some prevailing formal regulations barring (co-operatives) from some sectors, for instance, the hospital sector
Jakarta (ANTARA) - An official of the Ministry of Co-operatives and Small and Medium Enterprises highlighted the need for co-operatives to penetrate more business sectors and accommodate more stakeholders from various sectors.

The Ministry's Deputy for Co-operatives Ahmad Zabadi stated that prevailing regulations still bar businesses in some sectors from being operated as co-operatives.

"There are some prevailing formal regulations barring (co-operatives) from some sectors, for instance, the hospital sector," Zabadi stated during a virtual gathering to celebrate the 75th anniversary of the Co-operatives Movement hosted by the Megawati Institute here, Sunday.


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The ministry's official stated that co-operatives should also be able to accommodate stakeholders from more sectors, so professionals, investors, and start-up actors can develop their businesses as co-operatives.

"We hope (co-operatives) can be a refreshing home that gives hope to various stakeholders that participate in co-operatives," he noted.

He pointed out that Ministry's Regulation No. 8 of 2022, enacted last April, is the ministry's effort to boost co-operatives to cater to more stakeholders.

Zabadi then said co-operatives must be administered and monitored through strict systems similar to that currently in place for banks. Monitoring institutions and deposit insurance agencies for co-operatives must also be established, he stressed.


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"(Co-operatives must be monitored) as strict as the bank, which has various security layers to protect its systems," the official noted.

Zabadi highlighted that while supervision of co-operatives cannot be performed by the Financial Services Authority (OJK), the authority will not oppose efforts to establish an independent institution to monitor co-operatives.

Efforts to boost the national co-operatives ecosystem must be integrated into the Co-operatives Bill that is expected to be deliberated by the government next year, he added.


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Translator: M Heriyanto, Nabil Ihsan
Editor: Fardah Assegaf
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