Jakarta, July 13 (Antara) - Cooperatives is one of the main pillars of Indonesia's economy apart from the private sector and state-owned enterprises (SOEs). But so far, its contribution to the national economy is still small, accounting for only 3.9 percent.
Hence, President Joko Widodo (Jokowi), while addressing the 70th anniversary of Cooperatives Day in Makassar, South Sulawesi, on Wednesday (July 12), has called on the Indonesian Cooperatives Council (Dekopin) to help boost Indonesia's economic growth through cooperatives development.
Minister of Cooperatives and SOE Anak Agung Gede Ngurah Puspayoga stated on the occasion that the ratio of the entrepreneurship cooperative movement in 2013 reached 1.55 percent and doubled in 2016 to 3.01 percent for two and a half years.
Although it is still smaller than that in Singapore, which is at five percent and Malaysia at six percent, yet at least, there is an increase. Indonesia has performed cooperatives reform movement by developing cooperatives and closing down as many as 43 thousand 'sick' cooperatives.
There are still 152 cooperatives in the country and half of them (76 thousand) remain healthy and the other half are 'sick.'
"This is a future challenge for the Cooperatives development. We will continue to provide guidance for cooperatives in provinces, districts, and municipalities. Healthy cooperatives will be included in the database, while the sick ones will be shut down to create qualified cooperatives," he added.
However, Jokowi noted that there are a number of successful cooperatives that could serve as an example for developing cooperatives in Indonesia.
"In connection with the existing cooperatives, I see many good cooperatives that can be used as models," he noted.
He mentioned several cooperatives that have successfully managed their business, such as the Batas Tabanan Village Cooperatives (KUD Batas Tabanan), the Mandiri Preginium Credit Cooperatives, and the Kospin Service Cooperatives, with a turnover now reaching Rp5 trillion. There is also the Sidogiri Cooperatives in East Java with a turnover of up to Rp18 trillion.
"These are examples of successful cooperatives that we can see. I leave it to the Minister of Cooperatives and the Indonesian Cooperatives Council (Dekopin) so that we can teach other cooperatives on how to achieve such a relatively big turnover of money. Let other cooperatives also learn money management and the ways to reach such a turnover," he revealed.
Jokowi argued that if there is a big corporation, then cooperatives must also be able to become big and match the private sector. Cooperatives must be encouraged to learn from successful examples on how to manage business, credit and money.
The government has given cooperatives the opportunity to distribute the People's Business Credit (KUR) funds and has cut the KUR interest rate from 22 percent last year to 9 percent now with a subsidy from the state budget. Next year, the interest rate will be cut further to 7 percent.
"On the occasion of the 70th Anniversary of Cooperatives Day, I invite all Indonesian cooperatives players to strengthen and re-energize the spirit of cooperatives movement and reform. With the rapid global changes, we can compete with private companies, corporations, and state-owned enterprises (SOEs). There is the opportunity in front of our eyes," he asserted.
In addition, the spirit of cooperatives should be energized to make it a joint force and a power of mutual cooperation to compete and quickly adapt to the development of the era, because the global change is very fast, stated Jokowi.
Speed, agility, and innovation are needed because today, it is no longer the big and the rich countries that will beat the small and the poor, but the quick ones, he added.
"Payments were used to be carried out with cash, but now, it is done with credit cards. In other countries, it is carried out in other ways without cards but with mobile phones. These changes should be followed by the cooperatives so that they are not left behind," he hoped.
After all, cooperatives is one of the people's key economic institutions in facing future challenges. "That is why the government places cooperatives as the main institutions in the implementation of policies on economic equality, agrarian reforms, and land redistribution. We will also ensure that cooperatives become one of the beneficiaries of the advantages of concessions that we will offer," the president noted.
Hence, the head of state reminded officials of cooperatives in the country of the importance of steadily improving the spirit of cooperative reforms as a joint force that can compete and quickly adapt to the times. "I remind you that cooperatives should never be afraid of competing with other economic players," the president emphasized.
The president wants cooperatives that will receive concessions to have management capabilities for handling land concessions to be provided by the government. "It should be able to provide proposals that can be calculated based on economic computations," the president noted.
On the occasion, the president pointed out that the contribution of cooperatives in the national economy was still low. Although it has doubled from 2.5 years ago, the contribution of cooperatives to the Indonesian economy is still relatively small, or only at 3.9 percent.
"In France, it is 18 percent; in the Netherlands, 18 percent; in New Zealand, 20 percent; and our country's cooperatives contributed just 3.9 percent," the president remarked.
In fact, the president noted that every year, the government has intensified its efforts to develop cooperatives as the pillar of the Indonesian economy. "This is our job; our great work is here, so that the cooperatives' contribution to the national economy will increase dramatically," he emphasized.***3***(A014/INE)EDITED BY INE
(T.A014/A/BESSR/A. Abdussalam) 13-07-2017 20:09 |
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