ambitious Plan to Empower Rural Communities

Indonesia is embarking on an ambitious initiative to establish approximately 80,000 cooperatives across teh nation. This program, known as the Red and White Village Cooperatives, aims to empower roughly 1.6 million residents by creating employment opportunities and fostering economic growth in rural areas.

Ferry Juliantono, the deputy minister of cooperatives, outlined the program’s potential impact during a seminar in Bandung, West Java. He stated:

Assuming each of the 80 thousand cooperatives employs 20 persons comprising supervisors, administrators, and managers, this program coudl absorb 1.6 million workers. We aim to attract as many members as possible to boost rural economies.

Ferry Juliantono, Deputy Minister of Cooperatives

Honoring the Legacy of Mohammad Hatta

The seminar in Bandung focused on the enduring legacy of Mohammad Hatta,Indonesia’s first vice president,widely regarded as the father of cooperatives in the country. Hatta’s vision of a cooperative-based economy continues to inspire policymakers and community leaders alike.

Beyond Savings and Loans: A Multifaceted Approach

The planned cooperatives are envisioned to be more than just savings and loan institutions.They are designed to function as productive business entities across various sectors, leveraging the unique potential of their respective villages.

Juliantono emphasized this broader role, stating:

Thes cooperatives are designed to manage the potential of their host villages, covering agriculture, horticulture, plantations, livestock, and fisheries.

Ferry Juliantono, Deputy Minister of Cooperatives

Scaling Up: From Small Businesses to factories

The government’s ambition extends beyond small-scale operations. There is a vision to revitalize larger industrial endeavors through cooperative efforts. The goal is to emulate past successes where cooperatives jointly managed textile factories and to establish new ventures like milk processing plants.

Juliantono elaborated on this vision:

Some cooperatives used to jointly run textile factories, and this is the level of business capacity we seek to revive. We will also erect milk factories, through which cooperatives are expected to produce pasteurized dairy products. In short, cooperatives must scale up.

Ferry Juliantono, Deputy Minister of Cooperatives

Instilling Cooperative Ideals in the Younger Generation

A key objective of the Red and White Village Cooperatives initiative is to instill Hatta’s cooperative ideals in the younger generation. This includes promoting a cooperation-based economy as mandated by Article 33 of the 1945 Constitution, which emphasizes economic democracy and social justice.

Hatta Foundation’s Endorsement

Meutia Farida Hatta,Hatta’s daughter and chairperson of the Hatta Foundation,has lauded the government’s efforts to create a more conducive environment for cooperatives. She emphasized the importance of talent, confidence, and collaboration for the success of these ventures.

Speaking at the seminar, she noted:

We find it critically important for cooperatives to play a bigger role in society.

Meutia Farida Hatta, Chairperson of the Hatta Foundation

She also stressed that:

The presence of talents with confidence and spirit of collaboration is key to successful and productive cooperatives.

Meutia Farida Hatta, Chairperson of the Hatta Foundation