Juliantono emphasized that these grassroots cooperatives could serve as distribution hubs for a wide range of state-owned enterprises (SOEs) products, such as liquefied petroleum gas (LPG), subsidized fertilizers, postal and financial services, as well as insurance products.
“There is a real demand for insurance in rural areas, for example, crop insurance,” Juliantono noted in his statement to the media, as quoted here on Saturday.
The deputy minister remarked that insurance companies can also offer health insurance products for the cooperatives' management teams and employees.
With tens of thousands of new cooperatives being established across the country, Juliantono sees vast potential for partnerships between the insurance industry and village cooperatives.
“We aim to establish 80 thousand village cooperatives. Assuming each has around 10 people managing its operations, there is a potential market of 800 thousand insurance clients,” he explained.
Beyond insurance, Juliantono also highlighted the possibility of offering pension fund services through these cooperatives, especially to support the welfare of cooperative staff.
He encouraged financial service companies to customize their products for rural communities to ensure broader acceptance and more effective market penetration.
“Insurance companies must also adapt to rural needs, not just cater to urban markets,” he stated.
President Director of PT Perta Life Insurance (PertaLife), Hanindio W. Hadi, echoed this optimism, noting the vast potential for collaboration between the insurance industry and village cooperatives.
PertaLife is a subsidiary of Indonesia’s state-owned oil and gas company, PT Pertamina (Persero).
“We plan to offer insurance products that can benefit the 80 thousand Merah Putih Village Cooperatives. The market potential is enormous, and this kind of partnership could help make our company more sustainable in the long term,” he affirmed.
He remarked that cooperative employees could be trained and licensed as insurance agents or brokers, allowing cooperatives to earn commissions and generate additional income for their operations.
“This opens up opportunities for cooperatives to become agents themselves, earning commissions and strengthening their financial position,” Hadi explained.
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Reporter: Uyu Septiyati Liman
Editor: Azis Kurmala
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