Indonesia aims to pass a new Cooperatives Bill this year to replace a 1992 law that is no longer adequate for the sector’s development, according to Cooperatives Minister Ferry Juliantono. Speaking on Tuesday at a seminar hosted by the Great Institute in Jakarta, Ferry stated that the current framework is obsolete and irrelevant for modern economic needs.
The legislative push forms part of a broader government strategy to overhaul the nation’s cooperative ecosystem. Authorities intend to expand cooperatives into strategic sectors, including potentially allowing them to manage community-owned and idle oil wells across various regions. Additionally, the government is considering the revival of a cooperative bank to strengthen financial backing for the sector.
Strengthening Human Resources and Management
To support the transition into larger industries, the government plans to transform the Indonesian Institute of Cooperatives, or Ikopin University, into a Public Service Agency under the Cooperatives Ministry. This institutional shift aims to bolster human resources within the sector by preparing professional cooperative managers.
These trained managers are intended to oversee operations nationwide, including Red and White Village and Urban Ward Cooperatives, or KDKMP, which are currently being established across the country. Officials want to shift public perception away from the notion that cooperatives are restricted solely to small businesses or savings and loan services.
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Challenging Economic Perceptions
Ferry emphasized that cooperatives possess the capacity to operate in major economic sectors, mirroring how cooperatives function globally rather than remaining confined to micro-enterprises. By opening up fields like the management of idle oil wells and large-scale industries, policymakers hope to integrate cooperatives more deeply into the national economy.
Frequently Asked Questions
What is the timeline for the new Cooperatives Bill?
The Indonesian government aims to pass the new Cooperatives Bill this year, according to Cooperatives Minister Ferry Juliantono.
Why is the 1992 law being replaced?
Ferry stated that the current 1992 law is no longer relevant or adequate for the sector’s development and can no longer be used.
What new sectors might cooperatives enter?
The government plans to expand cooperatives into strategic sectors, which could potentially include managing community-owned and idle oil wells in various regions.
How will the government change public perceptions about the scope of cooperatives in Indonesia?
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