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View all search resultsGovt allows cooperatives to manage mining, community wells
Cooperatives Minister Ferry Juliantono stated that the move is part of the broader efforts to scale up cooperatives to be on par with state-owned enterprises (SOEs) or private businesses.
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Three children walk past a Red and White Cooperative outlet on July 11, 2026, that has yet to begin operations in Ternate, North Maluku. The government aims to have 40,000 Red and White Cooperatives by the end of 2026 as part of efforts to strengthen rural economies, complete cooperative facilities and prepare professional staff to manage the program. (Antara/Andri Saputra)
T
he government has expanded the roles of local cooperatives by allowing them to manage strategic sectors, including community wells, mineral mining and the crude palm oil (CPO) industry.
Cooperatives Minister Ferry Juliantono unveiled the move in his remarks during the National Cooperatives Day on Sunday, saying that the implementation was part of the broader efforts to scale up cooperatives to be on par with state-owned enterprises (SOEs) or private businesses.
In addition to the mining and energy sector, Ferry highlighted that the government was preparing to establish a new CPO factory managed by a cooperative.
“In August, we will officially launch a CPO factory in Musi Banyuasin, a regency in West Sumatra that is [built and managed by] a village unit cooperative,” he said.
President Prabowo Subianto also delivered a speech at the same event, stressing that local cooperatives could play a crucial role in supporting a people-centered economy and vowing to transform the Red and White Cooperatives program into an integrated rural economy hub.
Read also: Free meal, cooperative programs may lead to subpar tax revenue
Prabowo has envisioned that the cooperatives are to be equipped with infrastructure such as warehouses, cold storage units, delivery vehicles and retail outlets to streamline rural supply chains.
