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.
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)
The 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.
