The Number Of Cooperatives Down Drastically During The One Decade Of Jokowi's Leadership

JAKARTA - The Ministry of Cooperatives and SMEs (Kemenkop UKM) noted that the number of cooperatives has decreased significantly during the decade of Joko Widodo (Jokowi) leadership.

Deputy for Cooperatives of the Ministry of Cooperatives and SMEs Ahmad Zabadi said the number of cooperatives experienced a reduction within 10 years, namely 209,488 units in 2014 to 130,119 units in 2023.

"It started that we did what was previously referred to as cooperative reform, namely by disbanding cooperatives that were no longer active. In 2014 there were approximately 209,488 cooperative units. Then, today there were 130,119 cooperative units," said Ahmad Zabadi at a press conference at the Kemenkop UKM office, Jakarta, Thursday, October 10.

Ahmad Zabadi assessed that although the number had decreased, in terms of cooperative capital, it had increased, from Rp200.66 trillion to Rp254.17 trillion.

"This means that in terms of the number of entities there has decreased. Because in the 2014-2019 period we have disbanded (around) 82,000 cooperatives," he said.

Interestingly, he said, when the cooperative was disbanded, no one complained. Because they are aware that the cooperative they manage is not going well.

"But then what's interesting is that apart from the fact that after the disbandment, no one complained. This means that the cooperative that was dissolved was actually dead," he said.

He said that in order to create a cooperative ecosystem that is more in favor of and adaptive to the demands of business development and the times, the Ministry of Cooperatives and SMEs has carried out regulatory transformations, including the preparation of the Cooperative Bill (RUU) by strengthening the substance of the development of the cooperative ecosystem.

Then, affirmative policies that provide opportunities for cooperatives to move in various business sectors and grow big; the implementation of multi-party cooperatives, especially for start-ups, professionals and the younger generation; the implementation of good governance; member protection; as well as handling and mitigation of problematic cooperatives.

Meanwhile, the Ministry of Cooperatives and SMEs noted that currently the trend of cooperative development in Indonesia is still dominated by savings and loan businesses, the portion is up to 70 percent. Meanwhile, the rest are engaged in the real sector.

"In reality, the development of cooperatives in us is the intention of cooperatives to borrow savings. Relatively 60-70 percent move in savings and loan cooperatives, while the real sector is still below 30 percent. On the other hand, the development of cooperatives in the world is 70 percent, namely the real sector and 30 percent savings and loans," he said.