Indonesian Cooperatives Face Significant Losses from Natural Disasters

Extensive Damage Reported

Recent floods and landslides in North Sumatra have caused substantial financial damage to local cooperatives, with estimated losses reaching Rp37.72 billion. The Minister of Cooperatives, Ferry Juliantono, revealed this information during a Coordination Meeting for Post-Disaster Recovery Acceleration in Sumatra held at the Coordinating Ministry for Human Development and Culture in Jakarta.

Impact on LPDB Partner Cooperatives

The disaster specifically affected 9 cooperatives that are partners with the Revolving Fund Management Institution (LPDB), resulting in total losses of Rp20.66 billion. The breakdown includes 5 cooperatives in Aceh and 4 in North Sumatra. These cooperatives play a crucial role in local economic development, making their recovery vital for regional stability.

Government Response and Recovery Efforts

Minister Ferry emphasized that cooperatives across Indonesia will be mobilized to support both economic and social recovery in the affected regions through the 'Cooperatives Care for Sumatra Disaster' initiative. This program aims to leverage the cooperative sector's strength in promoting community resilience and facilitating post-disaster reconstruction efforts.

Broader Implications

The impact of these natural disasters extends beyond the immediate financial losses, affecting the livelihoods of thousands of members who depend on these cooperatives for financial services and economic opportunities. The government's proactive approach in involving cooperatives in the recovery process highlights the sector's potential in supporting national disaster response strategies.