Indonesia Revives Cooperatives to Boost Economy, Streamline Distribution

Indonesia is re-establishing cooperatives as a cornerstone of its national economy, aiming to empower citizens and streamline the distribution of essential goods and subsidies. Minister of Cooperatives, Ferry Juliantono, announced the "Village/Kelurahan Red and White Cooperative" program, emphasizing its role in strengthening the people's economy and acting as a state tool to cut through lengthy distribution chains.

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The government is restoring cooperatives as the main current of the national economy through the Village/Kelurahan Red and White Cooperative program.

Juliantono highlighted the historical roots of cooperatives in Indonesia, noting their development by national figures like H.O.S. Tjokroaminoto and Mohammad Hatta. He stressed that cooperative values such as mutual help, equality, and family align with both Islamic teachings and the Indonesian character, as reflected in Article 33 of the 1945 Constitution. Historically, cooperatives were integral to national development plans, managing sectors from agriculture and livestock to distribution and even finance through institutions like Bukopin.

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Cooperatives have strong historical roots in the journey of the Indonesian nation.

However, the minister observed a decline in cooperative influence following the late 1990s economic crisis and policies influenced by the International Monetary Fund. This period saw a reduced state role in economic regulation, allowing market mechanisms to dominate and strengthening large economic players while marginalizing cooperatives and small businesses. The current government initiative seeks to reverse this trend and restore cooperatives to their prominent position in the national economic landscape.

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The cooperative values of mutual help, equality, and family are in line with Islamic teachings and the character of the Indonesian people.