During a dialogue on the acceleration of village deliberations for the cooperatives' establishment in Padang, West Sumatra, on Thursday, he said that so far, loan sharks, expensive medicines, and costly basic necessities are common woes in villages.
Many young village residents of working age choose to look for work in cities, creating new problems in villages.
With the establishment of 80 thousand village cooperatives across Indonesia, it is hoped that young people will choose to stay in their village to work.
In general, he said, the total assets of cooperatives in Indonesia are currently around Rp500 trillion (around US$30.68 billion). That figure is still far lower compared to state-owned enterprises and the private sector.
In terms of business activities, cooperatives are also still behind other business entities. Apart from that, people’s participation in cooperatives has been declining from year to year.
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“The 80 thousand cooperatives will have a positive impact on the economic growth of the community,” he said.
The deputy minister added that on July 12, 2025, coinciding with National Cooperatives Day, President Prabowo will announce the formation of 80 thousand Red and White Village Cooperatives across Indonesia.
The cooperatives are envisioned as hubs of economic and social services for village communities, which would provide savings, loans, and clinic services, among other things.
President Prabowo has issued Presidential Instruction Number 9 of 2025 on the Acceleration of the Red and White Village Cooperatives’ Formation to expedite the establishment of the 80 thousand village cooperatives.
He has also formed a special task force for the purpose, which is led by Coordinating Minister for Food Zulkifli Hasan.
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Translator: Muhammad Zulfikar, Raka Adji
Editor: Rahmad Nasution
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