Indonesian Cooperative Sector Gets Boost Through New Bank Initiative

Strategic Acquisition Plan

The Indonesian Ministry of Cooperatives is spearheading an ambitious plan to establish a new cooperative bank through the acquisition of existing banking institutions. Minister Ferry Juliantono emphasized the need for collective action among cooperatives to pool resources and purchase shares in available banks. This strategic move aims to revitalize the cooperative sector across various industries, aligning with President Prabowo Subianto's focus on cooperative development.

Historical Context and Future Prospects

The plan draws inspiration from the successful establishment of Bank Umum Koperasi (Bukopin) in 1970 by cooperatives, although it has since changed ownership. The new initiative seeks to recreate this model, with the Minister advocating for cooperatives to come together in a gotong-royong (mutual cooperation) spirit to achieve this goal. The proposed bank is expected to provide more tailored financial services to the cooperative sector.

Strengthening Cooperative Financing

In a related development, Minister Ferry is set to meet with Finance Minister Purbaya Yudhi Sadewa to request additional capital for Lembaga Pengelola Dana Bergulir (LPDB). This financial institution plays a crucial role in providing financing to cooperatives, particularly those venturing into the manufacturing sector. The capital injection aims to enhance LPDB's capacity to support cooperatives beyond traditional savings and loan activities, promoting their entry into more capital-intensive industries.