UNAIR NEWS Indonesias Minister of Cooperatives, Dr. Ferry Juliantono SE Ak MSi, underscored the central role of cooperatives as a cornerstone of the national economy during a public lecture titled Indonesia Punya Kamu 2025. The event took place on Monday (11/24/2025) at Airlangga Convention Center (ACC), MERR-C Campus, . In his remarks, he highlighted the constitutional basis of cooperatives and explained how current economic conditions have made their revitalization a government priority.
Cooperatives and character of Indonesian society
Dr. Juliantono emphasized that cooperatives are firmly rooted in Article 33 of the 1945 Constitution. He argued that the core values of cooperatives strongly reflect Indonesian cultural identity. Cooperatives are aligned with our national values: kinship, togetherness, and mutual cooperation. That is why our founding fathers recognized cooperatives as the most suitable economic institution to represent the mandate of Article 33, he said.
He noted that Indonesias economic landscape shifted dramatically after the 1998 crisis, when the government signed a Letter of Intent with the International Monetary Fund (IMF). The agreement paved the way for free-market policies, reducing the states influence and allowing major economic actors to dominate key sectors. Since then, many sectors have transitioned into a free-market system. Middlemen, online lenders, and large market players have tightened their grip, gradually pushing aside cooperatives and small enterprises, he explained.
The Minister also pointed out that these shifts have contributed to deepening economic inequality. Cooperatives currently hold assets totaling Rp293 trillion, a small figure compared to state-owned enterprises and large private corporations, whose assets run into the thousands of trillions. He stated that this imbalance underscores the need for government action to strengthen cooperatives.
The assets held by our cooperatives are nowhere near those of state-owned enterprises or private conglomerates. This gap illustrates the magnitude of inequality we need to overcome, he said.
Advancing cooperatives from the village level
As part of its strategy, the government has introduced the VillageUrban Cooperatives Merah Putih program, which aims to establish cooperatives across the country. This initiative is mandated under Presidential Instruction No. 9 of 2025 and is supported by directives for the acceleration of infrastructure and facility development.
The President has instructed the creation of 80,000 VillageUrban Cooperatives Merah Putih. This is a tool to ensure rural communities are not simply economic objects, but active participants with access to production and capital, he emphasized.
He added that village cooperatives are designed to serve three core functions: supplying essential goods, purchasing and distributing village production, and improving the delivery of government assistance. He stressed that village-level cooperatives can help create a more balanced and sustainable economic system for local communities.
Through the lecture, the government hopes students will gain a deeper understanding of the cooperative movement as a foundation for an inclusive economy. Dr. Juliantono closed his remarks by urging the public to reconnect with Indonesias economic identity, built on the principle of mutual cooperation.
Author: Samudra Luhur
Editor: Ragil Kukuh Imanto
