Jakarta (ANTARA) - Cooperatives Minister Budi Arie Setiadi has emphasized the importance of Red and White Village Cooperatives transforming into productive business entities.During a meeting on the business strengthening of West Java’s Red and White Village Cooperatives, which was followed online from here on Thursday, he said that village cooperatives must seek to become economic entities that can meet people’s needs.
“Cooperatives must become institutions that serve the needs of residents, from affordable staple goods, affordable financing, health services, to logistics distribution," he added, according to a statement issued by his ministry.
Based on national statistical data, so far, 80,480 Red and White Village Cooperatives have been formed in the country, with 93.04 percent, or 74,877 of them, obtaining legal entity recognition from the Ministry of Law.
Setiadi praised the performance of the West Java provincial government, which has successfully assisted in the formation of cooperatives.
All villages in West Java have held special deliberations on the cooperatives’ formation, and 99.73 percent or 5,941 cooperatives in the province have become legal entities.
The minister noted that even though the target of establishing 80 thousand village cooperatives has been achieved, the operations of the cooperatives face a big challenge.
He said that during the operational stage, the cooperatives must focus on strengthening their management, good governance, and comprehensive digitalization.
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He also highlighted several other challenges, such as uneven community participation and awareness about cooperatives.
In addition, the presence of problematic cooperatives and illegal online lenders disguising themselves as cooperatives has likely tarnished the image of cooperatives in the country.
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In facing these challenges, he emphasized the importance of village cooperative managers understanding three aspects: human resources, organization, and system.
Setiadi said that strengthening human resources is vital. On the organizational side, cooperatives must have clear legality and good governance.
Meanwhile, in terms of the system, they must be supported by a transparent, accountable, and integrated digital system.
