Kemenkop UKM Collaborates With Agriterra To Develop Agricultural Sector Corporatization Through Cooperatives

The Ministry of Cooperatives and SMEs together with Agriterra, an NGO from the Netherlands agreed to develop the Corporatization of the Agricultural sector through Cooperatives in Indonesia. (Doc. KemenkopUKM)

JAKARTA - The Ministry of Cooperatives and SMEs together with Agriterra, an international Non-Governmental Organization (NGO) from the Netherlands, agreed to develop the Corporatization of the Agricultural sector through Cooperatives in Indonesia.

Agriterra is a global consultant specializing in assisting agricultural cooperatives in developing industry in the agricultural sector.

Deputy for Cooperatives Ahmad Zabadi explained, Agriterra has a shared desire with the Ministry of Cooperatives and SMEs to realize cooperatives as modern, contributive, competitive business entities and support the synergy of developing modern cooperatives in the corporatization program of the agricultural sector through cooperatives at the Ministry of Cooperatives and SMEs.

"We are aware that cooperatives and MSMEs are the backbone of the Indonesian economy. BPS data shows that 64 million MSMEs contribute to 57.2 percent of Indonesia's total GDP, and absorb 97 percent of the workforce," said Zabadi in a statement to the media, Tuesday, May 3.

The Ministry of Cooperatives and SMEs also targets to produce 100 modern cooperatives by 2021 and this year as many as 150 modern cooperatives and encourage 2.5 million micro-enterprises to transform into the formal sector.

Furthermore, Zabadi explained, in order to increase the access of cooperatives and MSMEs to financing, the government is preparing 4 (four) major transformations, namely the transformation from informal to formal, transformation to digital and the use of technology, transformation into the value chain, and modernization of cooperatives. .

"It should be noted that the purpose of this Memorandum of Understanding is to provide a legal framework for the implementation of cooperation between the Parties in order to develop corporatization of the agricultural sector through cooperatives in accordance with the policies of the Indonesian Government," said Zabadi.

Kemenkop UKM and Agriterra also agreed to cooperate in the scope of the provision of data and information on cooperatives; Improving the quality of cooperative governance; Improving the quality of cooperative financial management; Expanding access to cooperative financing; Growth and development of business partnership networks and expansion of market access; Increasing the capacity of human resources of Cooperatives and Cooperative Trustees; Increasing the added value and competitiveness of cooperative products.

Zabadi added that this Memorandum of Understanding is effective from the date of signing of the parties and is valid for a period of 3 (three) years.

On the same occasion, Agriterra CEO Marco Schouten expressed his appreciation for working with the Ministry of Cooperatives and SMEs.

"We hope that this opportunity is a milestone or the initial journey of cooperation between the Deputy for Cooperatives at the Ministry of Cooperatives and SMEs with Agriterra in terms of developing modern cooperatives," said Marco.

Marco added that modern cooperatives, especially cooperatives in the agricultural sector (including fisheries and animal husbandry) have a very important and extraordinary role, of course, not only in terms of the economy but also in terms of meeting various needs, not only at the national level but also at the regional level.