Coordinating Minister Airlangga Says Digitalization Encourages Cooperative Development And Modernization

Coordinating Minister for Economic Affairs, Airlangga Hartarto. (Photo: Doc. Coordinating Ministry for the Economy)

JAKARTA - Until now, Cooperatives continue to grow and become the mainstay of the community to turn the wheels of the economy. This is reflected in data from the Ministry of Cooperatives and SMEs (Kemenkop UKM) in 2020 which has increased when compared to 2019.

In 2019, the number of active cooperatives was 123,048 units with a business volume of IDR 154 trillion and a membership of around 22 million people. Meanwhile, in December 2020, the number of active cooperatives was 127,124 units with a business volume of IDR 174 trillion and around 25 million members.

However, cooperatives during this pandemic also experienced various obstacles to run their business. Most cooperatives experience impaired loan repayments, decreased turnover, withdrawal of deposits, postponement of the Annual Membership Meeting, and other obstacles.

The development of cooperatives also has its own challenges, so it is necessary to strengthen the role of cooperatives. Related to the management of institutional management, increasing the capacity of cooperative human resources, the use of technology and information systems both in cooperative management and in running their business, it is necessary to provide guidance and assistance as well as partnerships. One of the efforts that can be done to overcome the challenges faced is through the modernization of cooperatives.

The target for the growth of modern cooperatives in 2024 is 500 cooperative units. To achieve this target, while at the same time facing the challenges of developing cooperatives, several strategies have been carried out by the Government, especially the Ministry of Cooperatives and SMEs, including through inclusive closed loop-based cooperatives which were developed as "Multi-Party" cooperatives, focusing on cooperatives in the real sector, financing, amalgamation, namely mergers between cooperatives and cooperatives. mergers with cooperative business units, and digitalization efforts.

"In this digital era, the digitalization of cooperatives is increasingly important. Of course this is a golden opportunity because currently the digital market in Indonesia is 44 billion US dollars, and in 2025 it is predicted that around 125 billion US dollars. If all these cooperatives are digitized, with more members of 25 million, of course it will be an extraordinary value," said Coordinating Minister for Economic Affairs Airlangga Hartarto at the Opening of the National Leadership Meeting of the Indonesian Cooperative Council (Rapimnas Dekopin) 2021 with the theme "Digital Transformation of Cooperative Independence Road" which was held online and offline in Jakarta, Friday 22 October.

Meanwhile, the government has encouraged the development of cooperatives through regulations with the issuance of the Job Creation Law in 2020 to make it easier for cooperatives to develop and be competitive.

In the Employment Creation Act, it is regulated to simplify the founding members of cooperatives, namely primary cooperatives can be formed at least 9 people from the previous 20 people, the member list book can be in the form of written or electronic documents with the aim of facilitating the administration of the member list more quickly and accurately, Members' Meetings can be held automatically. online and/or offline, cooperative business can be carried out singly or all-in-one, and the basic legal arrangement of sharia cooperatives in which cooperatives can carry out activities based on sharia principles and sharia cooperatives must have a sharia supervisory board.

In addition, PP Number 7 of 2021 as the implementing regulation of the Job Creation Law also provides more detailed arrangements regarding convenience, protection and empowerment for cooperatives.

Especially in terms of empowering cooperatives, by establishing policies in the aspects of institutions, marketing, production, finance, innovation and technology, as well as policies for developing cooperatives in certain sectors through the empowerment of cooperatives in the marine and fishery sector, port water transportation, forestry, trade, and agriculture.

The government is currently also encouraging the realization of the Farmers and Fishermen Corporations (KPN) development program in the context of economic transformation, one of which is a cooperative institution. In 2022, it is planned that there will be several pilot projects related to this KPN.

Through this KPN pilot project, it is hoped that strong examples of cooperatives in the agricultural and marine fisheries sectors can be formed so that they can conduct business from upstream to downstream, on farm and off farm, to processing, packaging, and marketing agricultural products.

"The hope is that it can advance cooperatives, improve the welfare of farmers, and produce added value," concluded Coordinating Minister Airlangga.

Also present at this event were Member of the Indonesian Parliament Idris Laena, General Chairperson of Dekopin Nurdin Halid, Chief Advisor and Special Staff of the President Prof. Jimly Asshiddiqie who is also a thinker and practitioner of cooperatives, and the Governor of DKI Jakarta Anies Baswedan.