Deputy Minister of Cooperatives, Ferry Joko Juliantono, stated that the establishment of the Merah Putih Village/Subdistrict Cooperative aims to strengthen the role of cooperatives as a pillar of public welfare and a driver of the rural economy. The cooperative is expected to promote job creation, improve the welfare of farmers and MSME actors, shorten supply chains, and strengthen financial inclusion at the village level.
The Merah Putih Cooperative is also expected to play a role in reducing extreme poverty and inflation through more efficient and community-based economic services.
“A social inclusion and innovation-based approach is key to building the future cooperative capable of facing global challenges in the digital era,” he said at Grand Keisha Hotel, Yogyakarta, Monday, Jul. 21, 2025, during a national seminar commemorating National Cooperative Day with the theme: Advanced Cooperatives, Just and Prosperous Indonesia.
The seminar was organized by the Office of Cooperatives and MSMEs of the Special Region of Yogyakarta, the Directorate of Community Service at Universitas Gadjah Mada, and the Indonesian Cooperative Communication Forum (FORKOPI).
Several speakers participated, including Dr. Amirullah Setya Hardi from the UGM Faculty of Economics and Business (FEB UGM), Professor Jamhari from the UGM Faculty of Agriculture (Agriculture UGM), and Cahyadi Joko Sukmono, a practitioner and chair of the National Executive Board (DPN) of ABDSI.
As of 2024, Indonesia recorded 131,617 active cooperatives with nearly 30 million members.
This figure indicates that one in ten Indonesians is part of a cooperative.
According to Statistics Indonesia (BPS), cooperatives contributed around IDR 1,373 trillion or 6.2 percent of the national GDP of IDR 22,139 trillion in 2024, showing significant potential for further development.
However, cooperatives in Indonesia still face various challenges, such as low member participation, a lack of digital innovation, limited social inclusion, and a shortage of leadership regeneration.
These obstacles hinder cooperatives from reaching their full potential as the backbone of the people’s economy.
Therefore, in commemorating the 78th National Cooperative Day, continued efforts are needed to strengthen the role of cooperatives as a key driver of the people’s economy.
Vice-Rector for Student Affairs, Community Service, and Alumni, Dr. Arie Sujito, noted that negative perceptions resulting from past cooperative failures and the rise of illegal online lending disguised as cooperatives have contributed to the low public participation in cooperative movements.
This reluctance is also evident in the formation and development of the Merah Putih Cooperatives in villages.
“Many communities still do not see the importance of cooperatives, as reflected in the low percentage of cooperative membership. This may be due to a lack of understanding of the potential benefits cooperatives offer to the rural economy,” the vice-rector explained.
Lecturer at FEB UGM, Dr. Amirullah Setya Hardi, highlighted the importance of penta-helix cooperation in cooperatives, particularly collaboration among government, communities, businesses, and academia.
The government plays a role in policy-making, providing infrastructure, and facilitating collaboration among stakeholders.
Meanwhile, the private sector is expected to contribute resources, expertise, and entrepreneurial spirit to drive economic growth and job creation within the cooperative ecosystem.
Academia can provide research, knowledge, and training to support cooperative development, enhance skills, and promote innovation.
“The community represents the end-users and beneficiaries of cooperative initiatives, ensuring that development efforts are relevant and responsive to local needs. We also hope the media can act as a communication channel to disseminate information, raise awareness, and promote the positive impact of cooperative development,” he stated.
Author: Agung Nugroho
Post-editor: Lintang Andwyna