Jakarta (ANTARA) - The Ministry of Cooperatives is collaborating with four ministries and one agency to strengthen the role of Red and White Village Cooperatives as the drivers of the people's economy.

The collaboration was formalized through memorandums of understanding (MoUs) signed in Jakarta on Tuesday, with the Ministry of Micro, Small, and Medium Enterprises (MSMEs), the Ministry of Forestry, the Ministry of Higher Education, Science, and Technology, the Ministry of Transmigration, and BPJS Kesehatan.

At the MoU signing event, Cooperatives Minister Ferry Juliantono noted that the collaboration with those four ministries and one agency has concrete and strategic scopes.

The minister explained that the cooperation with the Ministry of MSMEs, for instance, includes developing the Red and White Village Cooperatives to serve as a major market for MSME products across Indonesia.

With 80,000 outlets ready for operation, these village cooperatives are expected to become a major marketplace for MSME products.

"We will prioritize that the goods sold at these village cooperatives are MSME products," he said.

Meanwhile, the collaboration with the Ministry of Higher Education, Science, and Technology focuses on utilizing research and innovation to develop cooperatives.

This includes reviving student cooperatives and implementing thematic student community service programs to provide assistance to the village cooperatives.

With the Ministry of Forestry, he said that the cooperation focuses on strengthening business institutions and human resource capacity for cooperatives in the forestry sector, specifically assisting Social Forestry Business Groups (KUPS) in establishing cooperative legal entities.

He further said that in collaboration with the Ministry of Transmigration, his ministry will encourage the formation of cooperatives in transmigration areas to manage productive economic activities.

Furthermore, the cooperation with the state insurer BPJS Kesehatan will include data exchange, literacy improvement on the National Health Insurance (JKN) program, and encouraging active participation of cooperative members and staff in the insurance program.

On the same occasion, MSMEs Minister Maman Abdurrahman noted that the cooperation is essential to encourage cooperatives' role as aggregators for local MSMEs.

Meanwhile, Forestry Minister Raja Juli Antoni stated that 8.3 million hectares of social forestry have been granted to the public, involving 1.4 million families and the formation of approximately 15,000 KUPS.

"We hope that through the collaboration, KUPS can transform into cooperatives, leading to the birth of Social Forestry Business Cooperatives," Antoni said.

The Indonesian government initiated the Red and White Village Cooperatives as hubs of economic and social services in village communities, offering savings, loans, and clinic services, among others.

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Translator: Shofi Ayudiana, Raka Adji
Editor: Azis Kurmala
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