Bambang Soesatyo, a member of the Indonesian House of Representatives (DPR RI), the 15th Speaker of the People’s Consultative Assembly (MPR RI), and Deputy Chairman of the Indonesian Chamber of Commerce and Industry (KADIN), highlighted that the number of cooperatives in Indonesia is actually very large, but does not fully reflect the expected quality and sustainability.
Data from the Ministry of Cooperatives in 2025 recorded around 220,000 cooperatives, but many are inactive, remaining only with signboards and no real economic activity.
He explained that one of the main obstacles for production cooperatives is the lack of superior products with a strong brand identity.
“Through collective branding, cooperative members no longer operate in isolation. They are connected in a mutually reinforcing production and marketing ecosystem. This will increase productivity and member welfare,” said Bamsoet.
He emphasized that the Merah Putih Cooperative must function as a driving force for the regional economy, with a broader role, from production to distribution.
“We want cooperatives to be the driving force for the regional economy. When local products have a strong brand and an efficient distribution system, the impact will be directly felt by the communities surrounding the cooperatives,” he explained.
Meanwhile, the Minister of Cooperatives, Ferry Joko Juliantono, stated that the government is accelerating the development of Merah Putih Village/Sub-district Cooperatives to catch up with the lag in cooperatives compared to other sectors.
“For decades, privately-owned enterprises have progressed, state-owned enterprises have progressed, but cooperatives have lagged far behind in terms of assets, business opportunities, and community participation,” Ferry said.
He added that this step was a direct directive from the President since the beginning of his administration.
“Since his election, the President has asked us to implement cooperative reform to catch up,” he continued.
The Executive Director of CORE Indonesia, Mohammad Faisal, believes that the success of cooperatives depends heavily on their connection to the local economy.
“Cooperatives don’t just work for cooperatives, but also to drive the basic economy. So, there should be a multiplier effect, including job creation,” he said.
He emphasized the importance of cooperatives as aggregators of local products, connecting small businesses with broader markets.
However, he also cautioned that cooperative development should not disrupt existing businesses.