Indonesian Government Expands Cooperative Sector Role

Strengthening Cooperatives Through Legislation

The Indonesian Ministry of Cooperatives is proposing new legislation to significantly expand the operational scope of cooperatives in the country. The draft law on Cooperatives aims to grant cooperatives the authority to engage in previously restricted business activities ¹

Enhanced Support for Kopdeskel Merah Putih

The government is focusing on strengthening Koperasi Desa/Kelurahan (Kopdeskel) Merah Putih through various measures. Minister of Cooperatives, Ferry Juliantono, has requested that larger, established cooperatives act as 'older siblings' or mentors to these village-level cooperatives. This mentorship program has already seen 12 major cooperatives commit to supporting Kopdeskel Merah Putih, with plans to enhance their capacity by April 2026 ²

New Distribution Channels for Social Assistance

The Ministry is also exploring the use of Kopdeskel Merah Putih as distribution channels for social assistance programs. Henra Saragih mentioned that programs like Program Keluarga Harapan (PKH) could be distributed through these cooperatives, potentially benefiting 18.2 million recipients ³

Expanded Business Opportunities

Recent regulations signed by Minister of Energy and Mineral Resources, Bahlil Lahadalia, on November 14, 2025, have opened up new business opportunities for cooperatives in the mining sector. The regulations allow cooperatives, along with other entities like State-Owned Enterprises (BUMN) and social organizations, to manage mining operations ⁴

Challenges and Future Directions

Despite these initiatives, challenges remain. The current average membership of Kopdeskel Merah Putih stands at just 14 members per cooperative, far below the desired scale. The Ministry aims to make membership universal, with all villagers encouraged to join their local Kopdeskel ⁶