DR. SyarifuddinHasan
State Minister for Cooperatives and SMEs
The Republic of Indonesia

Presented at
The UN 2012 IYC Closing Ceremony
New York, 19-20 November 2012

Ms. Shamsad Akhtar, Assistant Secretary General
       for UN Department of Economic and Social Affairs,
(Madam Pauline Green, President of ICA)
Distinguished Speakers
Ladies and Gentlemen
Good morning

First of all, please accept my deepest condolence, regarding the hurricane sandy that hit US recently. Our prayers are with all the sufferers in the time of grief. I believe that they will recover from this tragedy even stronger than before.

I would like also to take this opportunity to express my sincere thanks for the invitation from the Department of Economic and Social Affairs of the United Nations to attend this important event; the closing ceremony of the 2012 International Year of Cooperatives.

The 2012 International Year of Cooperatives under the theme of “Cooperatives Enterprises Build a Better World” has given us chances to highlight and promote the success of cooperatives in our country. Their economic and social roles and their contribution to the wealth of our society have been encouraging us and our people to further develop cooperatives in numerous sectors to support our daily needs.
It is indeed a great pleasure to have an opportunity to present Indonesian activities and experiences in promoting and celebrating the2012 International Year of Cooperatives. 

Ladies and Gentlemen

The Indonesian economic condition in recent five years is exhibiting a promising trend.  The growth rate now is 6.4%, wherein 2008, it was 6%, and by 2014 the growth rate is targeted to reach 7.7%.

The poverty level now is 11.69%, wherein 2008, it was 15.4 %, and by 2014, it is targeted to decrease to 10%.

In addition, the unemployment rate has also been decreasing. It is now at 6.32%, where in 2008, it was 8.4 %, and by the year 2014, it is targeted to decrease to level of 5%.

Indonesian government believes that the above achievements were mostly contributed by cooperatives and SMEs and the President of the Republic of Indonesia, DR. Susilo Bambang Yudhoyono, has declared that cooperatives and SMEs are the most appropriate vehicles to reduce unemployment and poverty. That is way, we have to encourage more the role of cooperatives.

The government takes initiatives to realize strong, genuine, modern and professional cooperative societies.  The policies are undertaken by creating conducive environment, strengthening their institutional capacity, providing valuable resources and opportunities to engage in various sector of economy. The government, furthermore, encourages and provides supports in terms of startup capital, soft loan, guarantee fund, training and marketing facilities.

In the implementation of the policies and programs, the national government under coordination of the Ministry of Cooperatives and SMEs is in close collaboration with the Indonesian Cooperative Council and provides budget support to execute its programs.

The growth of Cooperatives movement in Indonesia is indeed supported by the stable national economic growth and the development strategies known as triple track plus strategies characterized by pro-growth with equity, pro-job, pro-poor and pro-environment. Pro-growth with equity strategy aims at creating equitable growth for 240 million Indonesian people which are spread across more than 17,000 islands.

One of the important programs undertaken to facilitate cooperatives is through provision of micro credit scheme known as KUR which is guaranteed by the government up to 80 %.In the period of 2007 to October 2012, the amount of disbursement reached USD 9.67 billion with the number of borrowers reached 7,291,326 people and we also provide revolving fund with subsidized interest rate for cooperatives. By having these strategies, there are many cooperative enterprises and SMEs migrate to the middle class business category.

Under suitable economic performance, the national statistics shows cooperative significant figures, where;

  1. The number of cooperatives now is reaching to 192,443units. Out of it, 7,831 units are saving and loan cooperatives. One of the biggest saving and loan cooperative named Konspin Jasa with the sales volume of USD 855 million. We hope in the future, this cooperative could be listed as one of the top 300 under the World Cooperative Monitor.
    We also encourage other cooperatives to be globally recognized.  There are 97 big size cooperatives spread across the country. Those cooperatives are encouraged to participate in the global contest, and hopefully to be listed in the world top rank cooperatives as well. 
  2. Total number of individual members is more than 33.6 million people.
  3. Total capital is approximately USD9.1billion.
  4. Total sales volume is approximately USD9.6 billion.
  5. Total surplus reached USD642.6 million.

Since cooperatives have important role in reducing unemployment and  poverty, the government carries out a nationwide cooperative campaign known as Gemaskop with the main objective to enhance awareness and encourage society to joint cooperative business activities. Furthermore, the role of cooperative to nurture cooperative entrepreneurship has also been one of our strategic programs.

Ladies and Gentlemen

In line with the 2012 International Year of Cooperatives declared by the United Nations, the Indonesian government and cooperatives joint committee has been organizing numerous activities to raise public awareness on the vital contributions of cooperative enterprises to poverty reduction, unemployment reduction and social integration. The activities undertaken in 2012 as follows:

  1. Cooperative campaign across the country under the program of National Cooperative Campaign known as Gemaskop.
  2. Introducing the new emblem of cooperatives to symbolize the new spirit of cooperatives movement and to foster cooperative development.
  3. International Seminar on Cooperatives held in Mataram–Lombok, West Nusa Tenggara on June 23, 2012. The seminar was attended by Speakers and participants from a number of countries.
  4. The commemoration of the 65th Indonesian Cooperative Day in July 2012 in Palangkaraya, Central Kalimantan. Recognition and appreciation were awarded to best achievement cooperatives.
  5. Environmental Awareness Program for cooperatives with the theme "Indonesian Cooperative Go Green” was launched in Malang, East Java on 12-13 October 2012.
  6. National Training Program for student cooperatives held on 24-28 September 2012 in Lembang, West Java.
  7. Cooperatives Youth Camp held on 2-4 November 2012 in Maumere, Sikka Regency, East Nusa Tenggara.
  8. Conference on Global Development 300 held in Denpasar, Bali on 12-14 November 2012. The conference aims to motivate cooperatives for being globally recognized as listed on the world's top 300. 
  9. International Micro Finance Conference held on 22-23 October 2012 in Yogyakarta. This conference is intended for sharing of information, ideas and knowledge that can push innovation in microfinance.
  10. The launching of the Revision of new Cooperative Law on 18 October 2012.

The new revised cooperative law provides a strong foundation for cooperatives to progress, more protection to the interest of the members and to ensure genuine and professional cooperative enterprises. Under this new law, the values and principles of cooperatives are strongly secured.  One man one vote, and cooperative as an autonomous organization are fully implemented.

Other break through mandated by this cooperative law are the establishment of Cooperative Deposit Insurance Agency (LPS)and Saving and Loan Cooperative Supervision Agency (LPKSP).
The objective of the Cooperative Deposit Insurance is to secure the member deposit. This system will raise the trust of the society on the businesses of cooperatives. Furthermore, it will encourage cooperatives to exhibit sound financial management as well.

Supervision on saving and loan cooperative is another priority program of the government as mandated by the new law to protect the interest of the society from improper conducts of cooperatives.  Under the new cooperative law, the government is responsible to supervise saving and loan cooperatives to ensure that their services are dedicated to their members only.

Ladies and Gentlemen

By having the 2012 International Year of Cooperatives declared by the UN, many activities have been done to increase the awareness of the people toward cooperatives.  We do hope that the collaborative efforts need to be continued to realize more significant role of cooperatives to reduce global unemployment and global poverty. Of course, there are many more efforts to be done to strengthen our cooperatives.
I do believe that there are a lot of great opportunities to share, hand in hand and cooperate with all countries. Let us build more strong relationship and commitment to empower cooperatives around the globe.

Thank you.