The push follows the launch of 80,081 legally recognized cooperatives in Klaten, Central Java, on July 21, 2025.
“The second phase currently underway is the operation of these cooperatives to provide direct benefits to the community,” he informed in a statement received in Jakarta on Friday.
The minister emphasized that the primary function of the cooperatives is to keep inflation in check, while fulfilling the Constitutional mandate.
“This is also being done to realize the hopes and ideals of the nation’s founders that cooperatives should become the pillars of the nation’s economy,” Setiadi said.
Although the program is still in the initial stages, around one hundred cooperatives have already begun operating as pilot projects, he informed.
The government is hoping that by the end of this year, all Red and White Village Cooperatives, such as those in Bali province, will be operating optimally, he said.
“The obstacles faced are not barriers, but rather challenges such as human resources, access to technology, understanding the cooperative system, and regulations that need to be adjusted,” Setiadi added.
One example of a cooperative model in Bali is the Tegal Harum Village Cooperative in Denpasar, which serves around 13 thousand residents and 3,500 families.
The cooperative supplies various basic necessities such as cooking oil, sugar, salt, and coffee from various regions such as Toraja, Lampung, and Kintamani.
Local products are also being distributed through the national cooperative network.
The minister emphasized that the cooperative business model is not aimed at competing with the market, but promoting economic justice.
“This belongs to the people, by the people, and for the people,” he emphasized.
The cooperatives are also playing a crucial role in controlling inflation by shortening the long distribution chain, making the prices of basic necessities more affordable.
The government, Setiadi said, is targeting to make 19 essential commodities available through village cooperatives at lower prices for the community.
“This is a noble mission to realize the Constitutional mandate and the ideals of the nation’s founders that cooperatives become the pillars of the national economy,” he reiterated.
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Translator: Arie Novarina
Editor: Azis Kurmala
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