Indonesia Needs Independent Sustainable Cooperatives – Setiadi
cooperatives: The Bedrock of Indonesia’s Golden Vision 2045
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Jakarta, Indonesia – As Indonesia charts its course towards the enterprising ”Golden Indonesia 2045” vision, a clear call is being made for the strengthening of its cooperative sector. Cooperatives Minister Budi Arie Setiadi has underscored the critical role of robust, autonomous, and lasting cooperatives in achieving national advancement, economic justice, and sovereignty.
Fostering Economic Sovereignty Through Cooperative Strength
Speaking at the commemoration of the 78th National Cooperatives Day,Minister Setiadi articulated a vision where economic progress is intrinsically linked to the well-being of the populace. “We all want to see an Indonesia that is not only advanced in technology but also economically just and sovereign,” he stated, emphasizing that realizing this vision necessitates leaving no citizen behind.
The minister highlighted that cooperatives are not merely organizations but are poised to become an integral pillar of society, crucial for fostering economic inclusion. Their growth in number is secondary to their development as a foundational element of the nation’s economic fabric.
Cooperatives Align with National Development Missions
Minister Setiadi further elaborated on the strategic relevance of cooperatives in actualizing the eight main missions of president Prabowo Subianto’s governance. The cooperative model is seen as a vital enabler for missions focused on agriculture, food self-sufficiency, the development of the agro-maritime industry, and the preservation of local wisdom.
A key initiative, the Red and White Village Cooperatives program, is actively supporting rural development, promoting economic equity, and contributing to the eradication of extreme poverty. These programs aim to harness the inherent potential within Indonesia’s vast rural landscape.
Unlocking Rural Potential: A Cooperative Imperative
Indonesia’s cooperative landscape is substantial, with 131,617 active cooperatives boasting nearly 30 million members as of 2024. This translates to one in ten Indonesians being part of a cooperative. The sector’s economic impact is equally significant, with a total business volume reaching Rp214 trillion (approximately US$13.1 billion), contributing nearly one percent to the national GDP. This demonstrates a considerable untapped potential for further expansion and impact.
The minister also pointed to the persistent development gap between urban and rural areas, identifying villages as reservoirs of immense potential across diverse sectors. With 66,002 villages where a significant portion of the population is engaged in agriculture, forestry, and fisheries, the effective and responsible management of these resources through cooperatives is paramount.
“This is the potential that must be managed properly and responsibly,” Minister Setiadi concluded, underscoring the strategic importance of cooperatives in bridging development divides and ensuring inclusive growth for all Indonesians.