Ministry urges regions to curate MSMEs for cooperative formation

Jakarta (ANTARA) - Indonesian Cooperatives Minister Ferry Juliantono encouraged regional governments to identify micro, small, and medium enterprises (MSMEs) with the potential to establish cooperatives.

In a statement cited here on Friday, he highlighted that cooperatives can serve as platforms for MSME actors to expand their businesses in a more organized manner, including in the creative economy and tourism sectors.

Juliantono made the remarks while opening the Borobudur Expo 2026 in Magelang, Central Java, on Thursday (Sept. 17). He emphasized that the ministry is ready to assist MSME-based cooperatives through training, mentoring, and incubation programs, as well as financing support.

He cited the ministry’s Cooperative Revolving Fund Management Agency as a funding provider.

The approach is feasible for residents across business sectors and professions, he added, mentioning food sellers, craftsmen, fashion business players, art studios, illustrators, animators, and content creators.

He underscored the importance of complementing cooperative establishment with concrete steps to create an enabling business environment, allowing for adequate market access.

The minister also highlighted the Red and White Village Cooperatives (KDMP) program, saying cooperatives developed under the flagship initiative are intended to improve distribution networks and absorb locally produced commodities across sectors.

In that regard, he said outlets operated by KDMPs could serve as venues for marketing local MSME products, aiming to integrate business activities.

He previously said the ministry had devised a three-step strategy to advance the operationalization phase of the KDMP program, focusing on dissemination, verification, and human resources.

Speaking in Banjarnegara, Central Java, on Sept. 13, Juliantono said his office would first disseminate technical information on operating KDMP business units to cooperative administrators.

The next step is to verify and validate processes related to physical infrastructure and facilities built for village cooperatives, including their official handover to cooperative administrators.

Third, the ministry intends to employ selected managers in the near term and assign them to lead and oversee the daily operations of cooperatives already established across the country.

Ministry data show that 24,701 KDMPs had completed physical development by Sept. 14, while construction remains ongoing for another 10,866. The construction covers facilities essential for management and business activities, including offices, warehouses, and outlets.

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Translator: S. Ayudiana, Tegar Nurfitra
Editor: Azis Kurmala
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