Indonesia Ministry of Cooperatives proposes civil servant salary payments via cooperatives

The Indonesian Minister of Cooperatives, Ferry Juliantono, has submitted a proposal to the Ministry of Finance regarding a plan to distribute civil servant (PNS) salaries through cooperatives. The proposal aims to position cooperatives as payment partners for salaries and pensions, similar to the current roles held by PT Pos Indonesia and various banking institutions.

While the budget for this initiative is reportedly being prepared, specific details regarding the total amount, the exact distribution mechanism, the implementation schedule, and the specific cooperatives involved have not yet been disclosed. The Ministry of Cooperatives stated that this expansion of services is intended to provide more financial service access options for the public without displacing the existing roles of banks or Regional Development Banks (BPD).