TEMPO.CO, Jakarta - The Cooperatives and Small and Medium Enterprises (SMEs) Ministry has said it will be involved in the development of a new residential area for Mount Semeru victims as a modern village.

"We will support the business development of the disaster-affected residents with a new cooperative-based business model," Cooperatives and SMEs Minister Teten Masduki said during a visit to the construction site of the new residential area in Sumbermujur Village, Candipuro Sub-district, Lumajang District, East Java Province, on Saturday.

Residential housing and various community business centers will be built in the 79.6-hectare area, he noted.

"I have reviewed the master plan for the development of the residential area. There will be a micro, small, and medium enterprises (MSMEs) center, market, and integrated cattle farm. It is a very good concept," the minister remarked.

The ministry will coordinate with the head of the Lumajang District on the business model to make the new settlement an integrated digital village so that items produced in the village can be sold through the online marketplace, he informed.

Hence, MSME players will be encouraged to establish joint cooperatives to develop their business easily, Masduki said.

In addition, there is a lot of potential that could be developed -- not only for products made by disaster-affected residents, but also products from other regions of Lumajang District, he added.

Minister Masduki also disbursed Rp443.798 million in assistance to Lumajang District government during his visit.

Meanwhile, Lumajang District Head Thoriqul Haq said that the cooperative, which can accommodate all MSMEs in the new residential area, will also integrate all the potential of the region into one integrated business system.

"I welcome and laud the Cooperatives and SMEs Ministry for its support for the business development of residents affected by the Mount Semeru eruption," he added.

Read: Cold Lava Floods E. Java Villages Post Mount Semeru Eruption

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