Kadin and Ministry Sign MoU for 70,000 Village Cooperatives

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• English

Sabtu, 15 Maret 2025 - 18:00 WIB

Jakarta, VIVA – The Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Anindya Bakrie, has signed a Memorandum of Understanding (MoU) with the Minister of Cooperatives, Budi Arie Setiadi.

This agreement marks a strategic collaboration between Kadin Indonesia and the Ministry of Cooperatives to establish "Red White" Village Cooperatives across the country.

"With an extraordinary target of 70,000 'Red White' Village Cooperatives to be built across Indonesia, I believe this presents an incredible opportunity for collaboration with our colleagues in Kadin at the provincial and district/city levels," Bakrie said on Friday (March 14).

The cooperation between Kadin Indonesia and the Ministry of Cooperatives will focus on institutional strengthening and the digitalization of "Red White" Village Cooperatives.

Additionally, the initiative includes mentorship programs for startup and business development, as well as strengthening the supply chain for the cooperatives.

The partnership will also facilitate support for managing and developing supply chains for essential goods, agricultural products, and pharmaceuticals in rural areas.

This initiative aligns with efforts to enhance the capacity of human resources within the "Red White" Village Cooperatives, encourage data sharing and utilization, and implement other activities mutually agreed upon by both parties.

"Cooperatives are one of Kadin’s key pillars, alongside state-owned enterprises, the private sector, and, of course, MSMEs," Bakrie emphasized.

At the same event, Minister Setiadi stated that the formation of the "Red White" Village Cooperatives reflects President Prabowo’s commitment to improving the welfare of rural communities.

The primary goal is to protect rural communities from predatory moneylenders, middlemen, and unjust economic systems that have long exploited villagers.

For instance, farmers often have no choice but to sell their crops at low prices to middlemen and loan sharks, who then resell them at significantly higher prices in urban areas.

"This cooperative initiative is clear evidence of President Prabowo’s strong commitment to improving the well-being of the people and advancing rural communities across Indonesia," Minister Setiadi stated.

He added, "That’s why partnerships like this with Kadin are essential. If we’re talking about 70,000 village cooperatives, and each one is managed by just three people, that means we need to train and develop 210,000 individuals."