Successful World Cooperatives and Investments Exceeding Targets

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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.

Launch of the Merah Putih Cooperative, Here's a Successful Example

President Prabowo Subianto officially launched the 80,081 Merah Putih Village and Sub-District Cooperative (KDMP/KKMP) institutions 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, said that this initiative is no different from the KUD model that once failed: top-down, without roots in the community, and with minimal entrepreneurial basis.

However, amidst the doubts, hope remains. Here 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). With an agricultural base, the Zen Noh network has expanded into various businesses, reaching many countries. In fact, this 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 greater than Honda.
Mondragon is one of the world's largest federations of worker cooperatives based in the Basque Region, Spain, founded in 1956 by Father José María Arizmendiarrieta to overcome poverty and unemployment after the civil war. This cooperative has grown rapidly and now has tens of thousands of employees and hundreds of business units operating in various sectors such as manufacturing, finance, and services, even reaching various countries in Europe, the United States, and Asia.
Credit Agricole, a banking cooperative in France, has become the most solid bank owned by millions of its customers. Credit Agricole has successfully become one of the largest banks in the world with assets reaching trillions of euros and operations in more than 50 countries.
In the United States, the NRECA electric cooperative serves almost the entire state. Formed in 1942, NRECA serves cooperatives that supply electricity to more than 56% of the country's land area, 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 has transformed into a consumer-owned retail giant. FairPrice has more than 100 supermarkets and more than 160 Cheers minimarket outlets throughout the island, as well as various other retail formats such as FairPrice Finest, FairPrice Xtra, and FairPrice Xpress.

Read the full story here.

Seeking a "Win-Win Solution" for Online Motorcycle Taxis, Applications, 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 motorcycle taxi partners can remain prosperous and consumers can still benefit.

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

The Director of the Digital Economy Center of Law and Economic Studies (CELIOS), Nailul Huda, 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 subscription partnership model as a diversion, asserting that the main solution remains the recognition of drivers' status as workers.

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

Read the full story here.

Investment Exceeds Target, Productivity Challenges Await

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

The target is not a small number: IDR 1,905.6 trillion, up about 15.5% compared to 2024. This achievement, according to Prabowo, is proof of the business world's confidence in Indonesia, as well as an important capital to support this year's 5.3% economic growth target.

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

The basic metal industry once again dominates the list of the top five investment sectors with a value of IDR 136.3 trillion. On the other hand, Singapore is recorded as the largest contributor to PMA, 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 the Indonesian cocoa industry is strengthening with the increase in chocolate prices in the world market. Citing 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.

"World chocolate prices are very high and many are expecting chocolate from us, and we must also immediately start new breeding and rejuvenation, which we will do soon," said President Prabowo Subianto in Solo (20/7/2025).

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Revitalizing the Private Sector, Badung Regency Achieves Fiscal Independence

Ease of doing business and investment will encourage the fiscal independence of a region. Badung Regency, Bali Province, for example, derives 91 percent of its regional income from Locally-Generated Revenue (PAD), which is inseparable from the contribution of the private sector or business actors in paying regional taxes.

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

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

Read the full story here.

Food and Hospitality Indonesia 2025: Food & Hospitality Indonesia (FHI) is the leading international trade exhibition for the hospitality, food, and beverage industry in Indonesia. FHI will be 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 is holding 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", the Indonesia Re International Conference (IIC) 2025 highlights the importance of the insurance sector, especially reinsurance, in the downstreaming strategy and the development and strengthening of the national economy through cross-sector synergy. The speakers who will be present include the President Director of Re Indonesia Benny Waworuntu, Chairman of Commission XI DPR Muhammad Misbakhun, Deputy Minister of Finance Thomas Djiwandono, and CEO of Danantara Asset Management Donny Oskaria.