GOVT TO BUILD MODERN SHOPS TO BOOST COOPERATIVES

By Andi Abdussalam

Jakarta, Jan 8 (ANTARA) - The government is determined to boost the development of cooperatives in the country, increase their  number to about 200,000 and build at least 260 modern retail cooperatives shops called "UKM Marts".         "We will develop 260 UKM Marts across the country in 2013," Neddy Rafinaldi Halim, a deputy for the development of business networks of the Ministry of Cooperatives and Small Businesses, said here on Monday.          This is in line with the program of the Ministry of Cooperatives and Small-and-Medium Businesses which will increase the number of cooperatives units from 194.295 in 2012 to 200,000 in 2013 and build UKM Marts at potential points across the country.          According to Cooperatives and Small Scale Enterprises (UKM) Minister Sjarifuddin Hasan, the increase in the number of cooperatives to about 200,000 this year is expected to raise the capacity of cooperatives in absorbing workers.         "It is a fact that the increase in the number of cooperatives also raised the number of workers they could absorb," the minister said.            He said that cooperatives were able to absorb a lot of workers where in 2011, they employed a total of 377,238 workers. In 2012, the number increased to 429,678.          The minister also recorded that the number of active cooperatives' members increased also from 30.84 million in 2011 to 33.86 million in 2012.         The minister said his side has worked out different programs to boost the development of cooperatives in the country, including its plan to open a total of 260 modern retail cooperatives shops.          "Besides, we have also provided assistance for reinforcing the capital structure of cooperatives in villages and urban areas. A total of 1,250 cooperatives obtained the assistance in 2012," the minister said.          For this purpose, he said his ministry provided Rp62.5 billion for cooperatives, including new entrepreneurship cooperative units.         In line with its plan to boost the development of entrepreneurship cooperatives, the government decided to build modern retail UKM Mart shops.          According to Neddy,  the ministry continues to develop modern retail cooperatives shops or UKM Marts with a tag-line "Koperasi Kita," (our cooperatives).  "We are aware of the fact that the majority of cooperatives retail shops are in a limited condition, such as limited shop spaces, types of goods, management, human resources competence and institutional capacities," Neddy said.          He said that his side has turned regular cooperatives shops into 18 UKM Marts of the 84 cooperative retail shops established in 2011. It was continued in 2012 so that the number of modern retail cooperatives shops or UKM Marts developed in 2012 reached 24.          "The increasing number of cooperatives retail shops which were developed into a modern retail shop indicated a significant development of this business," he said.          He said that the number of costumers of the cooperatives retail shops also increased from about 50 per day per shop to 200 per day per shop.          The increasing number of customers also generated its turnover   from about Rp1 million-Rp2 million per day to about Rp5 million to Rp7 million. The number of types of goods also increased from about 1,000 to 2,500 items.         "Cooperatives also have been able to increase their workers absorption capacity, with an average of two workers per shop," Neddy said.          Regarding the number of workers, Minister Sjarifuddinn Hasan pledged his ministry would create one million new jobs in 2013. The ministry would launch a number of programs to create new jobs such as through National Entrepreneurship Movement to turn out more entrepreneurs, Sjarifuddinn said last week.          He said he was convinced the target could be reached  as more than 90 percent of Indonesian business players are operators of  small  and medium scale enterprises.          "Among the things that we need to do is to provide capital for new entrepreneurs," he said.          Through the 2012 revised state budget, the ministry of cooperatives and small and medium enterprises provided assistance as a start-up reinforcement capital worth Rp4.2 billion to 189 entrepreneurship business beginners.          He said the ministry is preparing a formula for a new scheme under the Program of Small Business Credit (KUR) to serve as a forum to seek capital  for  new entrepreneurs. "This would be part of diversification of KUR products," he said.          Sjarifuddin said that he has submitted a proposal to the KUR Policy Committee, which is chaired by the Chief Economics Minister requesting  immediate implementation of  the KUR scheme for new entrepreneurs.          He said the National Entrepreneurship Movement succeeded in increasing the number of new entrepreneurs from 570,339 in 2011 to 3,707,205 or 1.56 percent of the country's total population  by the end of 2012.          "This year we hope the number of entrepreneurs could exceed 2 percent of the country's total population," he said.          Therefore, as part of its efforts to increase the number of entrepreneurs in the cooperatives sector, the ministry of cooperatives and small and medium scale businesses will this year hold a 'business plan' competition for newbie entrepreneurs.       According to Prakso Budi Susetio, the deputy for human resources development of the Ministry of Cooperatives and Small and Medium Scale Businesses, the competition is aimed at  netting a total of 1,000 business plans and is expected to turn out newbie entrepreneurs in the cooperatives sector.          He said that the competition was expected to net 1,000 newbie entrepreneurs both from universities and the public circles.          "We hope that with the business plan competition they would be encouraged to begin doing business," Prakoso said.***2*** (T.A014/S012)      (T.A014/A/KR-BSR/S012) 08-01-2013 20:57: