Indonesia Earns UN Recognition for Cooperative Success

Jakarta Globe, Anastasia Winanti Riesardhy, November 24, 2012

Indonesia’s minister for cooperatives and small and medium enterprises,
Syarief Hasan. (JG Photo/Safir Makki) 

        

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Indonesia’s cooperative program was named one of the world’s most successful during a United Nations event in New York earlier this week, according to the Indonesian cooperative minister.

Indonesia, along with Malta, Panama and Trinidad and Tobago, was officially recognized during the closing ceremony of the UN’s International Year of Cooperatives on Nov. 19-20.

Officials from the four nations, including the Indonesian minister for cooperatives and small and medium enterprises, Syarief Hasan, were each given an opportunity to present at the event the strategies used in their respective countries that led to the prosperity of the programs.

“I was given the chance to describe programs we’ve been implementing that have led to Indonesia’s success in the cooperative and SME sector,” Syarief told journalists upon his return to Soekarno-Hatta Airport in Tangerang on Saturday.

“I gave examples of why Indonesia has succeeded. First, we have a large number of cooperatives. They [the audience] were surprised with the figure, especially when I mentioned that our cooperatives have a total of 33.6 million members.”

Syarief said in his presentation that Indonesia was currently home to 192,443 cooperatives, with 7,831 of them offering savings and loan services.

He added that evaluating the performances of cooperatives should not be based on their asset developments, or lack thereof.

“We should value cooperatives not based on their sales revenues, but on the amount of members and whether they feel the benefits of being members of the organizations. That’s the spirit,” Syarief said, reciting his own remarks made at the UN event.

He added that the Indonesian government supported the growth of cooperatives and SMEs since they helped reduce unemployment and poverty rates, which currently stand at 6.3 percent and 11.96 percent, respectively.

“They were surprised when I said our microfinance program can draw 7.8 million customers. ‘No wonder the poverty rate was reduced,’ they said.”

The UN designated 2012 as the International Year for Cooperatives.

Indonesia has organized a number of events and has launched some new programs this year in conjunction with the UN program, including training events for youth cooperatives, as well as seminars and conferences under the banner of “Indonesian Cooperatives Go Green.”

Indonesia’s House of Representatives also endorsed earlier this year the new cooperatives law, a revision of the 1992 version, which is expected to provide more protection to cooperative members and eradicate loan shark practices among cooperatives, among other things.

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