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View all search resultsCooperatives must function well, says Kalla
Vice President Jusuf Kalla is saying that despite a steady growth in the number of cooperatives in Indonesia, which now reach around 200,000, many of the cooperatives are inactive, leaving only their name plates
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V
ice President Jusuf Kalla is saying that despite a steady growth in the number of cooperatives in Indonesia, which now reach around 200,000, many of the cooperatives are inactive, leaving only their name plates.
'We should be grateful that 70 percent of all cooperatives in Indonesia have still been actively operating. The other 30 percent are inactive or have only their name plates. This should be given close attention from all of us,' said Kalla.
The Vice President was speaking during the celebration of the 68th anniversary of Cooperative Day in Kupang, East Nusa Tenggara, on Sunday.
Kalla said the development of cooperatives in Indonesia was determined not by how many regulations on cooperatives the government could issue, but through efforts and types of business activities they were working on.
He said since they were established 68 years ago, cooperatives in Indonesia had had five laws written for them, starting with Law No.79/1958, which was followed by Law No.14/1959, Law No.12/1967, Law No.25/1992 and Law No.17/2012.
In the event, Kalla criticized declines currently affecting village-level cooperatives (KUD). He said it was unfortunate that many KUDs, which had once grown almost in all villages across Indonesia, were no longer active or had only their name plates.
Kalla said that as part of its effort to push cooperatives forward in Indonesia, the government had reduced the interest rate of government-sponsored micro loans (KUR) to 12 percent in 2015 from 22 percent.
'It is planned that in 2016, we will reduce further the interest rate to 9 percent,' said the Vice President.
Kalla said cooperatives were one of the economic pillars, alongside private companies and state-owned enterprises, needed to develop and move Indonesia forward. Cooperatives were needed as all parties had to cooperate in developing the country, he went on.
House of Representatives speaker Setya Novanto, Cooperative and Small and Medium Enterprises Minister Puspayoga, East Nusa Tenggara Governor Frans Lebu Raya and Primary Cooperative Associations (Inkud) chairman Nurdin Halid also attended the Cooperative Day celebration. (ebf) (+++)
