Jakarta | The Ministry of Cooperatives and Small and Medium Enterprises has expressed its commitment to increasing the country's gross domestic product (GDP) from the cooperative sector. According to Minister of Cooperatives Anak Agung Gede Ngurah Puspayoga, cooperatives have historically contributed only 1.7 percent to GDP.
"We must shift the orientation of cooperatives from merely quantity to quality," said Puspayoga at the National Coordination Meeting on Cooperatives and SMEs in Jakarta on Monday, December 21, 2015.
Puspayoga stated that Indonesia currently has the highest number of cooperatives in the world. According to data collection, there are 209,000 cooperatives, with 147,000 active cooperatives and 62,000 inactive ones.
However, despite the large number, cooperatives have not significantly contributed to national income. This contrasts with Germany, where cooperatives contribute up to 69 percent of the country's income.
Three key aspects need improvement: rehabilitation, reorientation, and cooperative development. Rehabilitation efforts include reducing the number of inactive cooperatives. Reorientation is carried out by shifting the focus from mere quantity to quality. Cooperative development efforts will also be intensified by collaborating with other ministries to implement the Ministry of Cooperatives' flagship programs.
Puspayoga also called for improving cooperative performance, particularly by increasing membership and productivity. Expanding membership is expected to create more job opportunities. According to Puspayoga, this could help improve the welfare of surrounding communities and ultimately reduce social inequality. Currently, Indonesia's Gini ratio (inequality) is quite high.
"Our focus now is on how to improve the economic condition of lower-income communities, one of which is through cooperatives," he said.
To support this, the Ministry of Cooperatives has launched seven flagship programs to stimulate cooperative growth. These include the Revolving Fund Management Institution, People's Business Credit (KUR), Micro and Small Business Permits (IUMK), and intellectual property rights processing.
President Joko Widodo plans to lower KUR interest rates from 12 percent to 9 percent next year. This initiative aims to stimulate cooperatives and small businesses, increasing national income and strengthening the country's resilience amid a sluggish global economy. (Source: Tempo.co, Mawardah NH)