Jakarta, Indonesianpost.com – Reported by Antara, The government envisions a strong partnership between Red and White Village Cooperatives and village-owned enterprises (BUMDes) to enhance the welfare of rural communities, as stated by Deputy Minister of Villages and Disadvantaged Regions Development, Ahmad Riza Patria.
Patria clarified that the creation of new cooperatives is not intended to replace or overshadow existing BUMDes, but rather to complement them. He emphasized the importance of collaboration between both entities to fully leverage the natural resources available in their respective villages.
“Both BUMDes and cooperatives play a crucial role. There’s no need to shut down BUMDes; instead, they should work hand in hand to support their communities. Our goal is for village cooperatives to contribute to improving welfare,” he explained in a statement on Thursday.
Speaking at a dialogue session on the preparation of the Red and White Village Cooperatives program in Sofifi City, North Maluku, Patria highlighted the potential for these cooperatives to expand market access for rural products, opening opportunities to reach other regions and even international markets.
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Earlier, during a similar event in Jayapura, Papua, on June 2, the Deputy Minister urged cooperative operators to ensure that these entities become strong drivers of rural welfare.
“To drive prosperity in villages, cooperatives must be profit-oriented,” Patria said. “A cooperative needs to generate profit to sustain itself. For that to happen, income must exceed expenditure.”
Patria further explained that financially stable cooperatives would encourage more members to save rather than borrow, creating a sustainable impact on both the cooperatives and the villages they serve.
“When cooperatives are profitable, more members will choose to save rather than borrow. This shift is vital to reversing the current trend where borrowing is preferred over saving,” he added.
The Deputy Minister expressed confidence that with professional management, Red and White Village Cooperatives could become key pillars of economic growth and development in rural communities. (BL)