"Cooperatives are a tool with a noble purpose, namely to improve the community's welfare and encourage a positive change in Indonesia's economy to be more progressive and fair," he said as quoted from an official statement here on Tuesday.
The minister stressed that cooperatives embody the nation's economic ideology, which should be continuously strengthened, making them the main instrument in improving welfare and achieving more substantive social justice for all Indonesians.
He noted that the Indonesian Cooperative Council (Dekopin) can play a crucial role in overseeing and implementing the Red and White Village Cooperatives program.
He observed that to date, cooperatives have largely been marginalized in Indonesia's economic practices.
Of the Rp7,000 trillion (around US$430.6 trillion) in outstanding credit, cooperatives account for only 0.2 percent, or Rp15 trillion (around US$922.8 million). Additionally, villages contribute just 14 percent to the national economy.
"This imbalance is an important issue that needs to be resolved through joint efforts by building and strengthening the cooperative movement," he remarked.
Setiadi highlighted that strong collaboration among all stakeholders is expected to bring about a real change in Indonesian society.
"(This is) especially (important) in efforts to reduce economic inequality, improve welfare, and eliminate poverty," he added.
Prabowo has issued Presidential Instruction Number 9 of 2025 on accelerating the formation of the Red and White Village Cooperatives, which aims to establish 80 thousand cooperatives nationwide.
The cooperatives are envisioned as hubs of economic and social services for village communities, offering savings, loans, and clinic services, among other things.
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Translator: Arnidhya Nur, Raka Adji
Editor: Azis Kurmala
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