Minister: Indonesian cooperatives to revive

Jakarta (ANTARA News) - State Minister for Cooperatives, Small and Medium Enterprises (SMEs) Suryadharma Ali launched the revival of Indonesia`s cooperative societies as pillar of the people`s economy by setting up 70,000 quality cooperatives across the country.

"The government has allocated more than Rp3.6 trillion in the 2005-2007 period for the empowerment of cooperatives and SMEs," the minister told Antara here Tuesday.

He appealed to all parties to support efforts of reviving cooperatives.

The minister admitted that the image of the cooperatives has not been so good, and therefore tried to improve them through various programs and activities.

"Cooperatives should no longer become means for corrupt practices, or only giving debts which cannot be paid. It is high time to cooperate with the government in the transparent and independent development of cooperatives," he said.

In the past three years, cooperatives in Indonesia have been playing a significant role in the empowerment of the people`s economy both in the rural and urban areas.

Although constitutionally cooperatives were no longer defined as a pillar of the people`s economy, they have proved themselves as supporters to the life of the financially less fortunate.

He pointed out that about 28 million people have joined more than 133 cooperative societies in Indonesia.

"Cooperatives as the people`s economic corporate bodies have provided financial facilities, consumer goods at affordable prices, marketed the products of their members and contributed to the absorption of workers," he said.

Cooperatives which serve their members to save and borrow money turned out to be able to provide capital to small- and medium-scale enterprises in the rural areas.

The minister said his office would develop this type of cooperatives as a micro-nonbank financial institution.

In observance of the 60th anniversary of Cooperatives Day (July 12) the minister called on cooperative advisors, executives, managers, supervisors, members and sympathizers in the country to turn the 28 million cooperative members into basic capital for their development so that they would be able to create job opportunities and eradicate poverty.

"This is not only a hope but also a strong wish and determination of all the Indonesian people to achieve justice, democracy and prosperity for all," he said.