Establishing Migrant Worker Cooperatives for Sustainable Livelihoods

Strategic Insights -

The Indonesian government has taken a significant step towards ensuring sustainable livelihoods for returning or retired migrant workers by agreeing to establish migrant worker cooperatives. The Ministry for the Protection of Migrant Workers and the Cooperatives Ministry have signed a memorandum of understanding (MoU) to establish co-ops for migrant workers, with the aim of enabling them to develop businesses and improve their families' welfare upon returning to Indonesia. The initiative aligns with President Prabowo Subianto's Asta Cita programs and has the potential to create two million new jobs in villages.

Key Takeaways:

  • The Ministry for the Protection of Migrant Workers and the Cooperatives Ministry have signed a MoU to establish migrant worker cooperatives, with a focus on enabling returning migrant workers to develop businesses and improve their families' welfare.
  • The purpose of the cooperatives is to provide sustainable livelihoods for returning or retired migrant workers, with the aim of contributing to their communities and improving their socio-economic conditions.
  • The development of migrant worker cooperatives is aligned with one of President Prabowo Subianto's Asta Cita programs and has the potential to create job opportunities, including for former migrant workers who have experience working overseas.
  • 331 businesses have been established by retired migrant workers in Cirebon, West Java, highlighting their potential to form cooperatives in migrant worker-contributing regions.
  • The Red and White Village Cooperative program aims to create job opportunities, including for former migrant workers, with 80,605 cooperatives established across the country as of July 9, 2025.
  • The government estimates that the village cooperatives could generate at least two million new jobs in villages.
  • Returning migrant workers have the potential to contribute to their communities, as seen in a village in Cirebon, West Java, where 80 percent of the local government officials are former migrant workers.

Statistics:

  • 331: The number of businesses established by retired migrant workers in Cirebon, West Java.
  • 80,605: The number of cooperatives established across the country as of July 9, 2025, under the Red and White Village Cooperative program.
  • 2025: The year in which the 80,605 cooperatives were established under the Red and White Village Cooperative program.
  • 2 million: The estimated number of new jobs that could be generated in villages through the village cooperatives initiative.

Sources:

  • ANTARA, July 14 -- The Ministry for the Protection of Migrant Workers and the Cooperatives Ministry have agreed to establish migrant worker cooperatives. Minister for the Protection of Migrant Workers, Abdul Kadir Karding, and Minister of Cooperatives, Budi Arie Setiadi, signed a memorandum of understanding (MoU) on establishing co-ops for migrant workers in Jakarta on Monday.
  • ANTARA, July 9, 2025 -- The Red and White Village Cooperative program has established 80,605 cooperatives across the country, aiming to create job opportunities, including for former migrant workers.