Minister of Cooperatives, Ferry Juliantono, has emphasized the importance of private companies and state-owned enterprises (SOEs) providing guidance and support to Red and White Village Cooperatives in order to enhance their operational efficiency.
“Going forward, SOEs and private companies must act as mentors for the village cooperatives so they can function properly,” he said on the sidelines of the Kompas100 CEO Forum in South Tangerang, Banten.
He stated that such cooperation would facilitate the establishment of a more equitable development framework encompassing State-Owned Enterprises, the private sector, and cooperatives.
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Juliantono observed that the establishment of village cooperatives aligns with the vision of President Prabowo Subianto, aiming to reinstate a fair economic system and act as a constitutional tool to guarantee widespread prosperity among all members of society.
He suggested that guidance from both private companies and State-Owned Enterprises (SOEs) could enhance economic development and the monetization of local communities, facilitating a flow of funds that would boost the grassroots economy.
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“This circulation of money will boost people’s purchasing power. With money moving in villages, aggregate economic growth can accelerate toward the eight percent target,” he says.
He elaborated on the fact that the Red and White Village Cooperatives are intended to facilitate job creation in rural regions as a component of larger initiatives aimed at bolstering the local economy.
The minister highlighted the importance of fostering collaboration among cooperatives, the private sector, and state-owned enterprises in order to establish an economic ecosystem focused on partnership to facilitate equitable, comprehensive, and enduring development.
The village cooperatives will serve as intermediaries that sell essential goods at their respective storefronts and procure agricultural produce from rural communities.
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He mentioned that the cooperatives would also facilitate the dissemination of social aid to guarantee precision in its distribution.
The government initiated the Red and White Village Cooperatives program with the aim of empowering individuals in rural communities, generating employment opportunities, enhancing the availability of crucial goods and services, and mitigating severe poverty.
The initiative is in accordance with President Prabowo Subianto's Asta Cita mission, aimed at promoting economic equality and reducing poverty by initiating development projects at the village level.