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View all search resultsHouse member opposes plan to distribute civil servant salaries through cooperatives
Cooperatives Minister Ferry Juliantono previously said the initiative to involve cooperatives in the salary disbursement would be implemented this year as part of efforts to expand the role of cooperatives, particularly in financial services.
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A motorcyclist rides past a Red and White Cooperatives outlet that has yet to begin operations in Ternate, North Maluku, on July 11, 2026. (Antara/Andri Saputra)
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member of the House of Representatives has opposed the government’s proposal to distribute civil servants' salaries and pensions through the Red and White Cooperatives, due to concerns over operational inefficiencies.
Deddy Sitorus, a member of House Commission II overseeing home affairs and civil service empowerment, said the plan would only result in additional fees and be time-consuming for state workers.
He argued that the salaries, which were previously transferred directly to recipients’ bank accounts and could be withdrawn anywhere through an automated teller machine (ATM), would incur additional costs and require more time if redirected to the cooperatives.
“Distributing salaries through cooperatives […] can result in new fees that eventually will become a burden on civil servants,” said Deddy from the Indonesian Democratic Party of Struggle (PDI-P), on Saturday, as quoted by Kompas.com.
He went on to say that it could also create new problems in managing the cooperatives’ finances, especially if the salary distribution is mixed with the cooperatives’ business accounts.
“Cooperatives must upgrade their accounting system. Not to mention potential embezzlement of civil servants’ salaries due to inadequate systems,” Deddy added.
He urged the government to cancel the plan, hoping that the salaries would continue to be distributed directly from state-owned banks or regional development banks (BPD).
