Coordinating Minister Airlangga Prepares Cooperative Transformation Policy Through The Copyright Act

Coordinating Minister Airlangga Hartarto at the Peak of the 75th National Cooperative Day Commemoration / Photo: Public Relations of the Coordinating Ministry for the Economy

JAKARTA - As a pillar of the people's economy which is one of the prerequisites for the realization of national independence and sovereignty, cooperatives with their mutual cooperation philosophy are able to leverage and create prosperity for their members. The RPJMN 2020-2024 has also mandated the development of cooperatives, especially their contribution to the national economy.

In 2019, cooperatives contributed to 5.1% of Indonesia's GDP. This will continue to be encouraged to be able to contribute 5.5% of GDP in 2024. Until the beginning of July 2022, Indonesia is also recorded to have around 236 thousand cooperative units. With around 26.96 million members, the cooperative has a business volume of IDR 163.45 trillion.

"The number and contributions given by cooperatives need to be continuously encouraged and optimized further so that they are able to provide broad benefits to the community," said Coordinating Minister for the Economy Airlangga Hartarto when delivering his remarks at the Peak event of the 75th National Cooperative Day Commemoration and the Opening of the Week. Raya Kendal at the Kebondalem Stadium, Kendal Regency, Saturday, July 23.

In an effort to develop cooperatives, the Government continues to encourage the realization of Indonesian economic conglomerates through cooperatives. Cooperatives are encouraged to have a significant increase in the number of members and have increased assets and be able to actively participate during the pandemic.

The government has also provided incentives to cooperatives with the National Economic Recovery (PEN) revolving fund distribution program through the LPDB-KUMKM Institution in 2020 amounting to Rp1.29 trillion with the number of beneficiaries as many as 84 cooperative partners. The total number of MSMEs assisted reached around 118 thousand business actors, both with conventional and sharia schemes.

The government has also prepared several policies to encourage the transformation of cooperatives, including Law Number 11 of 2020 concerning Job Creation and Government Regulation Number 7 of 2021 concerning Ease, Protection and Empowerment of Cooperatives and MSMEs, which have provided various facilities for cooperatives.

In addition, the transformation of cooperatives is also carried out through a cooperative modernization program, strengthening cooperative supervision, financing cooperative guarantees, and developing cooperative human resources. Cooperative empowerment is also carried out through the Farmers and Fishermen Corporation (KPN) program as an off taker as well as a business entity that carries out off farm activities.

Various Government policies in transforming cooperatives are expected to foster the spirit and enthusiasm of national cooperative entrepreneurs, especially the millennial generation of Indonesian youth.

On that occasion, Coordinating Minister Airlangga together with the General Chairperson of the Indonesian Cooperative Council, Nurdin Halid, also gave awards and appreciated the contributions of the Cooperative Mobilizing Leaders.

On the same occasion, Coordinating Minister Airlangga also took the time to convey congratulations on celebrating National Children's Day which falls on July 23 to Indonesian children and advised them to keep learning, maintain health, be happy, and achieve goals.

In addition, in order to welcome the 417th Anniversary of Kendal Regency, Coordinating Minister Airlangga also congratulated and succeeded in organizing the Kendal Fair which is expected to help economic recovery in Kendal and expand the range of MSME products from Kendal. "Hopefully this can be a forum for MSMEs to continue the economy," said Coordinating Minister Airlangga.

Responding to questions related to how to revive suspended cooperatives, Coordinating Minister Airlangga at the doorstop session at the end of the visit emphasized that he would continue to focus on encouraging cooperatives to survive. The government provides various facilities in establishing cooperatives and SMEs.

Also present on this occasion were Members of the Indonesian House of Representatives, the Minister of Industry, Echelon I Officials of the Coordinating Ministry for the Economy, the Regent of Kendal and his ranks, the Chairs of the Regional DEKOPIN and Regional DEKOPIN, as well as the Dekopin Board of Directors.