Cooperatives Development
in Indonesia
“Country Presentation” of
The Ministry for Cooperatives and SMEs
The Republic of Indonesia
2010
Presented by : Deputy Minister for Institutional Development
Beijing, 3rd September, 2010
A Cooperative society is a business enterprise having
individuals or registered cooperative societies as members of
which its activities are based on cooperative principles and
simultaneously as a people’s economic movement based on
the principle of brotherhood.
A primary cooperative society is a cooperative society
established by and having individuals as its members.
Definition
A Secondary cooperative society is a cooperative society
established by and having cooperative societies members.
The type of a cooperative society is based on the similarity
of activities and economic interests of its members such as :
1. Saving-loan cooperative society
2. Consumer cooperative society
3. Producer cooperative society
4. Marketing cooperative society
5. Service cooperative society
Types
Cooperative
Definition & Types of
Based on the Law of Republic of Indonesia Number 25 of the
Year 1992 Concerning Cooperative :
Statistic of Cooperative in Indonesia
Year 2006 – 2010
2006
2007
2008
2009
2010
Number of
Cooperative (unit)
141,326
149,793
154,905
166,155
175,102
Number of
Member (people)
27,776,000
28,888,000
27,173,000
27,951,000
29,124,067
Number Coops
hold Annual
General Meeting
(unit)
46,057
48,262
47,153
51,353
52,856
Number of
employee (people)
350,435
371,405
357,005
343,370
351,504
Own Capital (US $
Million)
1,865.67
2,248
2,479.33
2,922.77
3,406.22
Business Volume
(US$ Million)
6,968.67
7,009
7,555
6,140.11
8,612.70
357.44
385.55
558.33
462.00
628.19
5.13
5.50
7.39
7.52
7.29
Surplus (US$
Million)
% Surplus from
Business Volume
Rationale
1. Providing jobs.
2. Reducing poverty.
3. Drive innovation.
4. Nurture entrepreneurship.
5. Foster supporting industries.
6. Develop new products.
7. Generate export opportunities.
8. Increase the overall well-being of society.
9. Triggering economic growth.
10. Ensuring equitable development.
11. Ensuring sustainable development.
The Ministry
1.
2.
The main task is to formulate and
coordinate policy initiatives in the
development of Cooperatives.
The areas of policy initiatives
1. Creating conducive policy environment.
2. Institutional building (under Deputy of Institutional Development)
3. Entrepreneurship development (under Deputy of HRD).
4. Enhancing productive capabilities (under Deputy of Production).
5. Access to financing (under Deputy of Finance).
6. Enhancing marketing access (under Deputy of Marketing and
Business Networking).
7. Business development and restructuring (under Deputy of
Business Development and Restructuring)
8. Research and development (under Deputy of Research and
Development)
IMPLEMENTING AGENCIES
1. The Ministry of Cooperatives
and Small, Medium
Enterprises.
2. The Indonesian Cooperative
Council (DEKOPIN), based
on The Law no. 25 of 1992
article 57.
The Indonesian Cooperative Council
The main duties of Indonesian Cooperative Council
(DEKOPIN), based on The Law no. 25 of 1992 article
58 as follows:
1. To struggle for and extend the aspirations of the
cooperative societies;
2. To enhance consciousness of the society to
cooperate;
3. To carry out cooperative education for the
members and the society;
4. To develop cooperation among cooperative
societies and between cooperative societies and
other business enterprises, at the national as well
as at the international levels.
1. Conducive environment
1. Enactment The Law no. 25 of 1992 (under
reviewing).
2. Evaluation on the existing regulations
obstructing Cooperatives development.
3. Creating enabling government regulations
(Government and Minister decrees).
4. Smoothing coordination among relevant
agencies including with local govt.
5. Inviting big private company involvement
to promote Cooperatives (CSR, business
partnership).
2. Institutional building
1. Promoting genuine cooperatives
(Revitalization of Institution of
Cooperative).
2. Strengthening cooperative apex
organization (Cooperative council).
3. Strengthening cooperative organization
and management capacity.
4. Strengthening cooperative legal status.
5. Preserving cooperative values and
principles.
6. Promoting cooperative cadres.
7. Member capacity building (member
education, promotion and participation).
3. Entrepreneurship devt.
1. Training for Cooperatives managers
and leaders.
2. Promoting cooperative field mentors.
3. The development of incentive system
to enhance entrepreneurship for
Cooperative is conducted through
several training, recognitions, support
for business development and other
incentive systems.
4. Productive capabilities
1. Financing for Cooperatives
production facilities.
2. Introducing appropriate production
technologies (energy, machineries).
3. Business engagement in promising
sectors ( fisheries, palm oil estate,
milk industry, integrated farming etc.).
5. Access to finance
1. Government budget for revolving fund.
2. Creating credit scheme for specific target
groups (woman coops, youth coops)
3. Cooperation with commercial bank to
execute special credit scheme for small
scale borrowers, including Coops (KUR and
linkage program).
4. Establishing semi-government body (LPDB)
in charge in operating revolving fund.
5. Strengthening saving and loan cooperatives.
6. Promoting financial consultation for Coops.
6. Marketing access
1. Annual exhibition at local, national and
international (SMESCo Festival and local
and international exhibition).
2. Trade mission.
3. Participation in International product
exposition in selected foreign countries.
4. Establishing trading house.
5. Establishing virtual trading board.
6. Establishing semi-government body (LLPKUKM) in charge in marketing.
7. Revitalizing traditional market (wet market)
with Market Coops (Koppas) involvement.
8. Promoting business partnership.
9. Promoting Coops retail shop.
7. Business development
1. Promoting BDSP (Business Development
Service Provider) for Cooperatives.
2. Development Small Holders Credit (KUR).
3. Promoting venture capital companies in
relation with Coops Development.
4. Warehouse receipt for Cooperatives’ Loan
Guarantee.
SMESCO Indonesia
1.
2.
3.
4.
5.
6.
7.
Trading
Exhibition
Consultation
Incubation
Retail
Permanent display
Trading House
8. Coops Research and Development
1. Policy research.
2. Program evaluation.
3. Strategic policy formulation (Mid
Term Action Plan).
4. Pilot project One Village One
Product (OVOP).
5. International Cooperation
(APEC, ASEAN, BIMP-EAGA)
Closing Statement
At the celebration of the Indonesian Cooperative’s
Day in July 12, 2010, the Government of Indonesia
has launched the “Cooperative Awareness
Campaign”.
The Government of Indonesia also commit to the
development of Indonesian Cooperatives in the
Medium Term Development Plan, 2010 to 2014.
Thank You