"These village cooperatives won't kill off small businesses or small shops. In fact, small shops owned by local residents will become members," Special Staff to the Cooperatives Minister, Ambar Pertiwiningrum, said in Magelang, Central Java, on Tuesday.
She noted that the establishment of the Red and White Village Cooperatives has been coordinated at the central government level.
Task forces have been formed involving several relevant ministries, including the Ministry of Agrarian Affairs and Spatial Planning and the Ministry of Agriculture.
According to Pertiwiningrum, this cross-ministerial involvement ensures that every aspect, from licensing to agricultural support and spatial planning, complies with current regulations.
She explained that small shops and micro-businesses in villages will actually play a vital role in the development of the village cooperatives. By joining as members, they can access various benefits, including financial support.
"If small shops need capital to grow their business, the only requirement is to become a member of the cooperative. The cooperative includes a savings and loan unit specifically designed to develop productive economies," she said.
She added that these units are expected to provide easy-to-access financing for village communities, ensuring that small business owners no longer struggle to find the extra capital needed to expand.
"With this scheme, the village cooperatives are projected to be a member-based platform to strengthen village economies, rather than a competitor to existing small businesses," she stressed.
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.
With over 80,000 Red and White Village Cooperatives established nationwide, the Ministry of Cooperatives is now accelerating the construction of outlets, warehouses, and the infrastructure necessary to support their operations.
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Translator: Heru Suyitno, Raka Adji
Editor: Azis Kurmala
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