Jakarta (ANTARA) - Cooperatives Minister Budi Arie Setiadi called on regional governments to play a role in the development of Red and White Village Cooperatives, one of which is by identifying the potential flagship business in each village.
Setiadi made the statement during a meeting on Monday with the East Nusa Tenggara governor and district heads of East Nusa Tenggara at his office in Jakarta.
On that occasion, he elaborated on the steps that regional governments should take to form cooperatives, including first collecting and analyzing data to identify villages that need cooperatives, villages with potential cooperatives, and community groups that can become cooperatives.
The second step is to determine the potential flagship business in the village and find potential partners and markets, while the third is to analyze and mitigate the risks that may arise in the formation of cooperatives, including supervision by cooperative experts.
Furthermore, the fourth step entails offering guidance during village deliberations, implementing changes to the cooperative's articles of association, and fostering the development of human resources for cooperative administrators.
The minister emphasized that the presence of the Red and White Village Cooperatives is vital for transforming the society and economy of villages.
"The presence of the village cooperatives will create equity. All sectors of the village economy will be owned by the community," he remarked.
He outlined that 3,137 villages in East Nusa Tenggara Province have significant economic potential.
With the assumption that each village receives a budget of Rp5 billion (around USD303,732), the total funds circulating in villages could reach Rp15 trillion (around USD911.2 million).
East Nusa Tenggara Governor Emanuel Melkiades Laka Lena emphasized his commitment to ensuring the successful implementation of the Red and White Village Cooperative program in his province.
In this regard, he highlighted the importance of good management by competent administrators.
