ASIATODAY.ID, KEDIRI — Indonesia’s Minister of Cooperatives, Ferry Juliantono, attended and witnessed the signing of a Memorandum of Understanding (MoU) between Kana Consumer Cooperative (Kopmen Kana) and Putra Harapan Jaya Marketing Cooperative at PT Indogula Jayabaya in Kediri, East Java, on Saturday.
The minister’s presence underscored the government’s commitment to promoting cooperative-based sugarcane and sugar downstreaming as part of broader efforts to strengthen the people’s economy and expand value-added agricultural industries.
The partnership covers the management of approximately 22,000 hectares of sugarcane plantations across East Java to support raw material supply for PT Indogula Jayabaya while creating an integrated business chain linking farmers, processing industries, and markets.
“This collaboration demonstrates that cooperatives can play a leading role in production, distribution, and downstream industrial development to strengthen the people’s economy,” Ferry said.
According to the minister, cooperatives should be encouraged to move beyond financing activities and become active participants in production, processing, and distribution sectors.
He noted that the partnership model established by Kopmen Kana and Putra Harapan Jaya has the potential to improve farmers’ welfare while enhancing the competitiveness of Indonesian products.
Ferry also emphasized that productive business initiatives such as those undertaken by Kopmen Kana deserve access to financing support in order to accelerate growth and expand economic benefits for cooperative members. The view was echoed by Krisdianto Soedarmono, President Director of Indonesia’s Revolving Fund Management Institution for Cooperatives and MSMEs (LPDB).
Jonathan Danang Wardhana, Chairman of Kopmen Kana, described the MoU as a concrete step toward building an integrated business ecosystem spanning the entire value chain, from upstream production to downstream processing.
“This agreement marks an important milestone in strengthening connectivity between farmers, processing industries, and markets within a mutually reinforcing business ecosystem,” Jonathan said.
He added that the sugarcane plantation development forms part of Kopmen Kana’s broader strategy to expand its food-processing industry portfolio, including plans to establish a soy sauce manufacturing plant.
To support land productivity and agricultural innovation, the cooperative is working closely with experts from Gadjah Mada University (UGM).
Jonathan further revealed that Kopmen Kana’s business expansion has attracted the confidence of Swiss international partners, who see significant potential in Indonesia’s real-sector cooperative movement.
Meanwhile, Henra Saragih, Deputy for Institutional Development and Cooperative Digitalization at the Ministry of Cooperatives, expressed hope that the partnership would serve as a model for real-sector cooperative development across Indonesia.
“This MoU is expected to become a catalyst for sustainable people-centered economic growth and a role model for cooperatives that can improve the welfare of both their members and the wider community,” Henra said.
Through this partnership, Kopmen Kana and Putra Harapan Jaya aim to establish an integrated business ecosystem that increases commodity value-added, strengthens farmers’ position within the supply chain, and contributes to inclusive economic growth in Indonesia. (Silvia Andriani)
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