The Minister of Cooperatives, Ferry Juliantono, has confirmed that the Merah Putih Kelurahan Cooperative in Melawai, South Jakarta, recorded a net profit of only Rp 78,000 over a six-month period. The revelation, disclosed during a working meeting with Commission VII of the House of Representatives on July 15, 2026, has drawn scrutiny due to the cooperative’s reported capital investment of Rp 3 billion.
Origins of the Melawai Cooperative
Minister Ferry clarified that the Merah Putih Cooperative in Melawai was established independently by its management team, rather than through direct government initiation. This distinction is significant because the Ministry of Cooperatives has historically concentrated its resources and development models on village-based cooperatives, which include infrastructure such as warehouses, outlets, and specific equipment.
The current operational model for cooperatives in large urban centers like Jakarta remains undefined by the Ministry. Minister Ferry acknowledged that the government has not yet implemented a formal framework for kelurahan-based cooperatives in major cities, noting that the business model and feasibility studies required for urban environments differ significantly from those used in rural, village-character settings.
Did You Know?
The Merah Putih Kelurahan Cooperative in Melawai reported a net profit of Rp 78,000 against a total capital investment of Rp 3 billion, representing a return of a negligible fraction over six months of operation.
Legislative and Public Scrutiny
The performance of the Melawai cooperative was highlighted by Mufti Anam, a member of the House of Representatives Commission VI from the PDI-Perjuangan faction. Mufti noted that the low profit margin has sparked significant public discussion, particularly on social media, where observers have questioned the financial viability of the entity compared to its initial capital.
Future Adjustments for Urban Cooperatives
In response to the concerns raised, Minister Ferry stated that the Ministry of Cooperatives intends to address the situation in Melawai directly. He committed to developing a specialized business model and conducting new feasibility studies tailored specifically for kelurahan-level cooperatives in large cities.
Frequently Asked Questions
Why is the Melawai cooperative’s profit considered low?
According to Mufti Anam, the cooperative generated only Rp 78,000 in net profit despite an initial capital investment of Rp 3 billion, which equates to a negligible return over six months.
Did the government establish the Melawai cooperative?
No. Minister Ferry stated that the Merah Putih Kelurahan Cooperative in Melawai was established independently by its own management team.
What is the Ministry of Cooperatives doing about this?
Minister Ferry announced that the Ministry will resolve the issues at the Melawai cooperative and is currently designing a specific business model and feasibility study suited for urban kelurahan-based cooperatives.
Do you believe that urban and rural cooperative models require fundamentally different government oversight to be successful?