Sumatra Disaster Recovery: Cooperatives Ministry Pledges Support

Jakarta,January 5,2024 – Indonesia is gearing up to support the recovery of communities and cooperatives hit hard by recent floods and landslides across aceh,North Sumatra,and West sumatra provinces. It’s a familiar story: disaster strikes, and local economies-often reliant on these cooperatives-get knocked back. but this time, the government is promising a more strategic, hands-on approach to rebuilding.

Cooperative Aid Package Targets Sumatra’s Disaster Zones

The Ministry of Cooperatives is prioritizing financial relief and skills training for affected members.

• The Ministry of Cooperatives will provide assistance to cooperatives in Aceh, North Sumatra, and West Sumatra.
• A cash-for-work program will help rebuild infrastructure while providing income to local residents.
• The Revolving Fund Management Agency is offering a one-year grace period on loan repayments for disaster-affected cooperatives.
• Cooperative service posts have been established in key districts to offer support and mentoring.

What kind of support are cooperatives receiving after the recent disasters? The Ministry of Cooperatives is offering a multi-pronged approach, including financial relief, infrastructure rebuilding assistance, and skills training, specifically tailored to help cooperatives get back on their feet. Deputy Minister of Cooperatives Farida Farichah stated the ministry is “prepared to play a strategic role in assisting disaster-affected cooperatives so they can resume their operations.” She emphasized continued assistance for cooperatives in the three impacted regions, according to a press statement released Thursday. Preliminary data from the ministry reveals the extent of the damage: 19 existing cooperatives and 27 Red and White Village Cooperatives were affected in Aceh. North Sumatra saw impacts on nine existing cooperatives and 20 Red and White Village Cooperatives, while West Sumatra reported seven existing cooperatives and nine Red and White Village Cooperatives impacted by the disasters.

The Ministry is prioritizing the rapid construction of outlets, warehouses, and other essential facilities for village cooperatives. This will be achieved through a “cash-for-work” scheme, offering a dual benefit: rebuilding infrastructure and providing immediate income to local residents.

Farichah highlighted the importance of accelerating the rebuilding process, especially for village cooperatives. The cash-for-work program is designed to directly involve local communities in the rehabilitation efforts, providing both employment and a sense of ownership. Beyond immediate infrastructure repairs, the ministry is also preparing skills training programs for cooperative members who previously managed productive businesses. This initiative aims to bolster the long-term viability of village cooperative business activities. financing is also a key component of the recovery plan. The Revolving Fund Management Agency is providing credit relief to cooperatives that had existing loans, including a one-year grace period on repayments. This breathing room is intended to alleviate financial pressure and allow cooperatives to focus on rebuilding. To facilitate support efforts, the Ministry of Cooperatives has established cooperative service posts in aceh Tamiang District, Central Tapanuli District, and Agam District. These posts will serve as central hubs for consultation, logistical assistance distribution, and business mentoring.

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