Successful World Cooperatives and Target-Breaking Investments

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The following is important information related to the development of the business universe that needs attention today based on the curation of the SUAR Team.

Launching Merah Putih Cooperative, Here's a Successful Example

President Prabowo Subianto officially launched the institution of 80,081 Red and White Village and Village Cooperatives (KDMP/KKMP) in Bentangan Village, Klaten, Central Java, Monday (21/7). The aim is to build the village economy and improve people's welfare.

The head of the Association of Strategic Socio-Economic Cadres (AKSES), Suroto, calls this initiative similar to the failed KUD model: top-down, without roots in the community, and lacking an entrepreneurial base.

But despite the doubts, hope remains. These are some examples of successful cooperatives from several countries:

Japanese Agricultural Cooperatives (JA-Zen Noh) is the largest cooperative in the world out of 300 cooperatives ranked by the International Co-operative Alliance (ICA). Based on agriculture, Zen Noh's network has expanded into various businesses, spanning many countries. In fact, the cooperative was only formed in 1972, much younger than the giant cooperatives in Europe and the United States. Its assets are estimated to be six times larger than Honda's.
Mondragon is one of the world's largest federations of worker cooperatives based in the Basque Region of Spain, founded in 1956 by Father José María Arizmendiarrieta to address poverty and unemployment after the civil war. The cooperative has grown rapidly and now has tens of thousands of employees and hundreds of business units engaged in various sectors such as manufacturing, finance, and services, even to various countries in Europe, the United States, and Asia.
Credit Agricole, a banking cooperative in France, is the most solid bank owned by millions of customers. Credit Agricole has managed to become one of the largest banks in the world with assets in the trillions of euros and operations in more than 50 countries.
In the United States, NRECA electric cooperatives serve nearly every state. Formed in 1942, NRECA serves cooperatives that supply electricity to more than 56% of the land in the country, providing essential services to 42 million people and powering more than 20 million businesses, homes, schools and farms in 48 states.
NTUC FairPrice in Singapore is a consumer-owned retail giant. FairPrice has over 100 supermarkets and more than 160 Cheers convenience stores across the island, as well as various other retail formats such as FairPrice Finest, FairPrice Xtra and FairPrice Xpress.

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Finding a "Win-Win Solution" for Online Ojek, Apps, and Consumers

The government seems to need to intervene immediately. The target is to find a balance so that the online transportation application business can be sustainable, but online ojek partners can remain prosperous and consumers remain profitable.

Chairperson of the Indonesian Transport Workers Union (SPAI) Lily Pujiati said that the main demands of her union centered on reducing applicator deductions and recognizing the status of drivers as workers.

Nailul Huda, Director of Digital Economy at the Center of Law and Economic Studies (CELIOS), also highlighted the complexities and potential solutions to achieve a balanced ecosystem.

Both SPAI and Huda from CELIOS highlighted the importance of clarity and balance in the online transportation ecosystem. Lily dismissed the Subscribe partnership model as a distraction, asserting that the main solution remains the recognition of drivers' status as workers.

Tirza Munusamy, Chief of Public Affairs Grab Indonesia, emphasized that the company respects the right of driver-partners to express their aspirations in an orderly and peaceful manner.

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Investment Hits Target, Productivity Challenges Await

President Prabowo Subianto said that this year's national investment target has been achieved even with less than 5 months left in the year.

The target in question is no small number: Rp1,905.6 trillion, an increase of around 15.5% compared to 2024. This achievement, Prabowo said, is proof of the business world's confidence in Indonesia, as well as important capital to support the 5.3% economic growth target this year.

Based on a report from the Ministry of Investment and Downstream Development/BPKM, entering the first quarter of 2025, investment realization was recorded at IDR 465.2 trillion, growing almost 10 percent compared to the same period last year. Of this figure, the largest portion still came from Domestic Investment (PMDN) with Rp 260.8 trillion, while Foreign Investment (PMA) contributed Rp 204.4 trillion.

The base metal industry again dominated the list of the top five investment sectors with a value of IDR 136.3 trillion. On the other hand, Singapore was recorded as the largest contributor to FDI, followed by China, Hong Kong, Japan, and Malaysia.

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Cocoa Production in Indonesia and the Momentum of Rising World Prices

The positive momentum for Indonesia's cocoa industry is getting stronger with the increase in chocolate prices in the world market. Quoting Tradingeconomics, although still lower than at the beginning of the year, cocoa prices at the close of trading on Monday (21/7/2025) reached USD 7,909 per ton, in an upward trend of 8.84 percent compared to Thursday (17/7/2025) which was at the level of USD 7,266 per ton.

"The world price of chocolate is very high and many expect chocolate from us and we also have to immediately start new seedlings, new rejuvenation," said President Prabowo Subianto in Solo (20/7/2025).

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Energize Private Sector, Badung Regency is Fiscally Independent

Ease of doing business and investment will encourage the fiscal independence of a region. Badung Regency, Bali Province, for example, as much as 91 percent of its regional income derived from Regional Original Revenue (PAD) cannot be separated from the contribution of the private sector or business actors in paying local taxes.

With the largest revenue from PAD, Badung Regency is the most fiscally independent of all regencies in Indonesia. In 2024, the realization of Badung Regency government revenue reached Rp 8.8 trillion. A total of Rp 7.5 trillion comes from PAD (85 percent).

For 2025, the Badung Regency Government is targeting revenue to increase to Rp 10.6 trillion. A total of Rp 9.7 trillion (91 percent) is targeted from PAD. Revenue from central government transfer funds is only Rp 899.8 billion or 8.4 percent. It can be said that the dependence of this region on transfer funds from the center is relatively low.

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Food and Hospitality Indonesia 2025: Food & Hospitality Indonesia (FHI) is the leading international trade show for the hospitality, food and beverage industry in Indonesia. FHI is held on July 22 - July 25, 2025 at the Jakarta International Expo (JIExpo) Kemayoran, Jakarta.

Indonesia Re Internal Conference 2025: PT Reasuransi Indonesia Utama (Persero) or Indonesia Re held its annual Indonesia Re International Conference (IIC) 2025 on July 22, 2025. With the theme "Empowering Downstream Growth in Financial Sector: Advancing the Insurance Industry through Strategic Collaboration", Indonesia Re International Conference (IIC) 2025 highlighted the importance of the insurance sector, especially reinsurance, in downstream strategies and the development and strengthening of the national economy through cross-sector synergies. The speakers included Re Indonesia President Director Benny Waworuntu, Chairman of Commission XI of the House of Representatives Muhammad Misbakhun, Deputy Minister of Finance Thomas Djiwandono, and CEO of Danantara Asset Management Donny Oskaria.