Jakarta: The Ministry of Cooperatives (Kemenkop) together with the Ministry of Transmigration (Kementrans) are collaborating to develop the economy in transmigration areas or regions. This joint commitment is based on the relatively underdeveloped and difficult-to-develop economic conditions in the transmigration areas due to various limitations.
Cooperatives Minister Budi Arie Setiadi said that one of the most appropriate options for developing transmigration areas is by establishing cooperatives.
“By this method, the communities living in the area can become more independent and economically empowered, thus increasing their chances of prosperity,” said Budi in a written statement, Jakarta, Tuesday, November 26, 2024.
Through the cooperative platform, he continued, various development and capacity-building programs for the community as cooperative members will become easier. Especially in transmigration areas where the majority of the population are farmers, this aligns with the government’s policy plan regarding food self-sufficiency.
“If possible, in the transmigration areas, a business entity in the form of a cooperative can be established.” When it is already established as a cooperative business entity, we at the Ministry of Cooperatives can collaborate. Marketing cooperatives in transmigration areas, I think, need to be established,” he said.
Based on data collected by the Ministry of Transmigration, the current number of transmigrants in Indonesia reaches 9.1 million people, consisting of 2.1 million Head of Families (KK) spread across 153 transmigration areas. With this number, the average land ownership by one transmigrant family is around 2 hectares, which has the potential to be developed into agricultural land.
One of the forms of synergy deemed most strategic to be implemented immediately is related to the distribution of fertilizers. The change in the subsidized fertilizer distribution policy means that fertilizer will no longer be distributed through agents or dealers but directly to beneficiaries such as Gapoktan (Farmers’ Group Association). Therefore, Gapoktan must immediately establish a cooperative legal entity as a prerequisite for receiving fertilizer from producers.
“If we can assist with the distribution, it would be quite a significant help for our friends in the transmigration areas, especially in Eastern Indonesia, regarding fertilizers. We will think about the marketing strategy later,” he said.
Help market the product
In addition, Budi also highlighted that the presence of cooperatives in transmigration areas will greatly assist farmers in making it easier to market their products. On the other hand, cooperatives can become offtakers of leading commodities in each transmigration region.
Another benefit that cooperatives in transmigration areas can obtain is the ease of accessing financing for cooperative working capital. The Ministry of Cooperatives, he continued, through the Revolving Fund Management Institution (LPDB) for MSMEs, stated its readiness to provide financial support to cooperatives, especially in transmigration areas if needed.
“We have the LPDB, and we can also support financing, including agricultural business loans.” “I think if the transmigrants are clearer in terms of people, land, and off-takers,” Budi said.
Meanwhile, the Minister of Transmigration, M. Iftitah Sulaiman Suryanegara, confirmed that one of the main obstacles faced by transmigrants is the difficulty in marketing products such as agricultural products. Therefore, the role of an offtaker who can absorb all agricultural products from the transmigrants is very much needed so that during the harvest season, they do not have difficulty selling.
“Yesterday we went to Papua, we heard many issues, especially in several transmigration areas, they are having difficulty marketing their products. When we went to Merauke, a transmigration area, the problem was the same,” he explained.
In response to this, Iftitah believes that one of the most suitable off-takers to bridge the issues in the transmigration areas is cooperatives. She hopes that the strategic plan to collaborate between the Ministry of Cooperatives and the Ministry of Transmigration can be realized, thereby boosting the welfare of the communities in the transmigration areas.
“Therefore, we are trying to meet with the Minister of Cooperatives (Budi Arie Setiadi) to discuss what we can synergize together regarding economic development in the transmigration areas as directed by the President (Prabowo Subianto),” he explained.
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