Indonesian Minister Urges Cooperative to Focus on Upstream Production

Minister of Cooperatives Ferry Juliantono has called on the National Laskar Juang Cooperative Indonesia to initiate business activities from the upstream sector, aiming to bolster the Pancasila-based economy. This directive was issued during the cooperative's inauguration in Denpasar, Bali.

Juliantono emphasized that cooperatives should encompass the entire production and distribution chain, including supporting local cotton farmers and fabric producers. "We envision the use of clothing made from local raw materials, with cotton grown in Indonesia," he stated. He expressed hope that the Laskar Juang Cooperative would lead efforts in opening cotton plantations and developing local textile and garment production, noting the country's reliance on imported textile dyes.

This move aligns with President Prabowo Subianto's directive to position cooperatives as the cornerstone of the national economy. The cooperative, founded by Rieke Diah Pitaloka, a member of the House of Representatives' Commission XIII, also receives support from the Indonesian Fashion Designers and Entrepreneurs Association (APPMI). Pitaloka stated the cooperative's goal is to build an economy based on mutual cooperation and shared prosperity, with a current focus on the textile sector and support for MSMEs and textile businesses.

Unlike traditional savings and loan cooperatives, Laskar Juang will concentrate on production and distribution from upstream to downstream. "Cooperatives must be able to organize the nation's productive forces to possess strong bargaining power and competitiveness," Pitaloka explained. She added that Indonesia needs to master its own economic value chain, from production to distribution, rather than merely exporting raw materials and importing finished goods.