The Indonesian government plans to establish 27 thousand new cooperatives in villages nationwide that currently lack legal entities with this particular business model, according to Cooperatives Minister Budi Arie Setiadi.
Addressing the media in Jakarta on Friday, he underscored that this plan is an integral part of the Red and White Village Cooperatives program, which aims to create approximately 80 thousand cooperatives by July this year.
Setiadi underscored that the government is still calculating the precise budget required to set up the targeted 27 cooperatives.
The budgeting process involves coordination with the Ministry of Finance, the Ministry of State-owned Enterprises (SOEs), and banking institutions.
“Other stakeholders, including banks, will take part by conducting a feasibility study,” he remarked.
The minister then assured the public that the 27 thousand cooperatives would be properly funded, established, and organized.
“In principle, the government is determined to ensure that Red and White Village cooperatives are carefully operated. We are against the idea of promoting the cooperative movement as a mere exercise in nostalgia,” he stressed.
In view of this, Setiadi emphasized that the nationwide cooperatives program is expected to emerge as a concrete solution to the needs and challenges faced by Indonesian rural residents.
Hence, he expressed hope that the Ministry of Finance and the SOEs Ministry would promptly study feasible financing options for establishing the cooperatives.
Related news: Red and White Cooperatives to boost rural economic independence
At a press conference in Jakarta on Tuesday (April 22), Deputy Minister of Agriculture Sudaryono announced three scenarios for the establishment of 80 thousand village cooperatives, one of which involves forming entirely new business entities and labelling them as Red and White Village Cooperatives.
Meanwhile, both the second and third scenarios focus on converting existing cooperatives into the program's desired cooperative model.
Under the second scenario, the government plans to identify well-performing cooperatives and directly rebrand them as Red and White Village Cooperatives, while the third will involve revitalizing dormant cooperatives before transforming them into new, empowered business entities under the program.
The following day, Deputy Minister of Villages and Development of Disadvantaged Regions, Ahmad Riza Patria, noted that the budget required for the construction of the cooperatives could reach Rp2 billion (around US$118,557) to Rp5 billion (around US$296,393) per village.
He underscored that the government intends to resort to collective funding, with contributions from state funds and corporate social responsibility (CSR) funds.
Related news: Village co-ops to be funded collectively: deputy minister
Addressing the media in Jakarta on Friday, he underscored that this plan is an integral part of the Red and White Village Cooperatives program, which aims to create approximately 80 thousand cooperatives by July this year.
Setiadi underscored that the government is still calculating the precise budget required to set up the targeted 27 cooperatives.
The budgeting process involves coordination with the Ministry of Finance, the Ministry of State-owned Enterprises (SOEs), and banking institutions.
“Other stakeholders, including banks, will take part by conducting a feasibility study,” he remarked.
The minister then assured the public that the 27 thousand cooperatives would be properly funded, established, and organized.
“In principle, the government is determined to ensure that Red and White Village cooperatives are carefully operated. We are against the idea of promoting the cooperative movement as a mere exercise in nostalgia,” he stressed.
In view of this, Setiadi emphasized that the nationwide cooperatives program is expected to emerge as a concrete solution to the needs and challenges faced by Indonesian rural residents.
Hence, he expressed hope that the Ministry of Finance and the SOEs Ministry would promptly study feasible financing options for establishing the cooperatives.
Related news: Red and White Cooperatives to boost rural economic independence
At a press conference in Jakarta on Tuesday (April 22), Deputy Minister of Agriculture Sudaryono announced three scenarios for the establishment of 80 thousand village cooperatives, one of which involves forming entirely new business entities and labelling them as Red and White Village Cooperatives.
Meanwhile, both the second and third scenarios focus on converting existing cooperatives into the program's desired cooperative model.
Under the second scenario, the government plans to identify well-performing cooperatives and directly rebrand them as Red and White Village Cooperatives, while the third will involve revitalizing dormant cooperatives before transforming them into new, empowered business entities under the program.
The following day, Deputy Minister of Villages and Development of Disadvantaged Regions, Ahmad Riza Patria, noted that the budget required for the construction of the cooperatives could reach Rp2 billion (around US$118,557) to Rp5 billion (around US$296,393) per village.
He underscored that the government intends to resort to collective funding, with contributions from state funds and corporate social responsibility (CSR) funds.
Related news: Village co-ops to be funded collectively: deputy minister
Translator: Arnidhya N, Tegar Nurfitra
Editor: Rahmad Nasution
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