President Joko Widodo hits the drum to officially open the Cooperatives Congress in the commemoration of National Cooperatives Day in Makassar, South Sulawesi, on Wednesday (12/7). In his speech, the President invited all levels of society to raise cooperatives and make them major institutions of the national economy.
MAKASSAR, KOMPAS – President Joko “Jokowi” Widodo has called on citizens to empower cooperatives so they can become a major financial institution of social economy. The cooperatives must become a major force able to follow current developments.
The statements were unveiled by President Jokowi in his speech during the 70th National Cooperatives Day commemoration in Makassar, South Sulawesi, on Wednesday. During the event, the President also opened the National Commemoration Congress, the last of which took place in 1999.
"We all want cooperatives to become one of the main financial institutions of the people. Therefore, cooperatives should be strengthened and empowered. In essence, cooperatives should serve as major economic force, "said the President.
Attending the event were Cooperatives and Small & Medium Enterprises Minister Anak Agung Gede Ngurah Puspayoga, South Sulawesi Governor Syahrul Yasin Limpo, Makassar Mayor M Ramdhan Pomanto, and Indonesian Cooperatives Council (Dekopin) chairman Nurdin Halid. Several regional heads, activists, and cooperative stakeholders from several regions were also present at the commemorative event.
Currently, cooperatives contribute about 3.9 percent to the national economy. "This figure is higher than that two years ago. However, the contribution is small compared to cooperatives in France and the Netherlands, which reached 18 percent. We are always rooting for cooperatives to become a pillar of the national economy, "said President Jokowi.
According to the President, whatever corporations did, cooperatives could also do. He saw many good cooperatives that could be used as models for other cooperatives such as the KUD Denbatas in Tabanan, Mandiri Credit Union, and the Kospin Jasa Cooperative. "These are examples that can be followed by other cooperatives. Why are they able to operate like that? If corporations can do it, all cooperatives should also be able to do the same thing, "he said.
Cooperatives are also required to develop themselves and follow the latest technological developments, such as in payment options.
"This requires innovation and creativity. Cooperatives must change so as not to be left behind. Only fast-moving countries will be able to compete. So we must move quickly in order to be able to compete with other countries, "said the President.
As one effort to grow cooperatives, the President promised to prioritize cooperatives in managing concessions of state lands.
"However, their management should be clear and good. If we can give land concessions of 10,000 hectares or even 100,000 hectares to cooperatives, why not? If large companies can [be given concessions], cooperatives can, too.
“There are thousands of cooperatives that could get concessions. There are 12.7 million hectares of land concessions prepared for cooperatives, SMEs, and boarding schools that we hope can boost the social economy," said Jokowi.
The President also warned that economic inequality and poverty were still major issues. One of the solutions for improving welfare was through cooperatives.
Meanwhile, Nurdin Halid hoped that the government could provide some regulatory relief to cooperatives, such as the relaxation of tax rules for cooperatives and their members.
"We also hope that cooperatives could serve as the distributor of basic goods and agriculture and fishery needs. If possible, the management of fish auctions could also handed over to cooperatives," said Nurdin.
Puspayoga said that quality improvement of cooperatives would receive special attention. "Quality cooperatives with many members will make a major impact to members and the gross domestic product," he said.
Economic ideology
Puspayoga said that efforts to develop a strong social economy through cooperatives were being pursued through total reform of cooperatives. Cooperatives reform is being implemented through the three prongs of rehabilitation, reorientation, and cooperatives development.
Meanwhile,at a symposium entitled "The Indonesian Economy and Social Welfare Based on the 1945 Constitution of the Republic of Indonesia", on Wednesday at the Legislative Complex in Senayan, Jakarta, Vice President Jusuf Kalla explained that the debate over Indonesia\'s economic ideology was no longer relevant.
The most important thing was to review the mistakes of policies taken by previous governments. These could be used as a lesson to overcome backwardness in many sectors in state activities.
"Countries that are known as capitalists, like the United States, have begun to prioritize their national interests, an approach that is commonly used by communist countries. While communist countries, like China, are fighting for free trade, as free as possible. The latter is usually carried out by a capitalist country," said Vice President Kalla.
Amid this debate, Indonesia will not imitate the economic systems in either the United States or China. Indonesia implements open but controlled markets, with the state playing a role in certain trade sectors.
The symposium was attended by the Coordinating Economic Minister Darmin Nasution, People\'s Consultative Assembly (MPR) chairman Zulkifli Hasan, and Regional Representatives Council (DPR) chairman Oesman Sapta Odang, as well as a number of economists and business players.
