Jakarta, May 22, 2025 — Indonesia’s Business Competition Supervisory Commission (KPPU) and the Ministry of Cooperatives and SMEs have reaffirmed their joint commitment to empowering village and neighborhood-level “Merah Putih” cooperatives (KBM) as a cornerstone of the national economy.
In a high-level meeting held on May 21, 2025, KPPU Chairman M. Fanshurullah Asa — commonly known as Ifan — and Minister of Cooperatives Budi Arie Setiadi discussed strategies to strengthen cooperative competitiveness, especially in the face of market domination by large corporate players in key sectors such as food, energy, agriculture, and retail.
“Many cooperatives struggle to grow because the market is controlled by a few dominant players,” Ifan stated. He emphasized that cooperatives play a vital role in building a more equitable and inclusive economic structure.
KPPU expressed its readiness to assist KBMs in navigating Indonesia’s competition laws, ensuring they are not drawn into unfair business practices and that their partnerships with other enterprises remain equitable. This approach aligns with Article 50(i) of Law No. 5 of 1999, which grants special consideration to cooperatives that remain focused on serving their members.
Minister Setiadi underlined the government’s broader vision, noting that under President Prabowo Subianto’s leadership, cooperatives are seen as key agents for rural economic transformation. “By empowering cooperatives, we can shorten long supply chains and deliver more direct benefits to the people,” he said.
Looking forward, KPPU and the Ministry plan to establish a joint framework for collaboration. This will include initiatives such as cooperative literacy programs, the promotion of fair and open business ecosystems, and the development of pilot projects showcasing best practices in healthy competition and equitable partnerships within KBMs.
The meeting was also attended by KPPU Commissioner Budi Joyo Santoso, Acting Secretary General Lukman Sungkar, and Deputy for Research and Advocacy Taufik Ariyanto.
KPPU reiterated that supporting cooperatives is not merely about taking sides, but about building competitive strength from the grassroots up. “Cooperatives must level up, and we are ready to support them,” Ifan concluded.
Source: https://kppu.go.id/wp-content/uploads/2025/05/Siaran-Pers-No.-025_KPPU-PR_V_2025.pdf
