Executive Director of the Institute for Development of Economics and\nFinance (INDEF), Esther Sri Astuti, assesses that strengthening human\nresources (HR), governance, and oversight systems are crucial factors in\nthe implementation of Village\/Urban Village Cooperatives (Kopdes) Merah\nPutih.<\/p>\n
She states that several aspects require attention in the programme\u2019s\nimplementation, particularly in the selection and supervision of\ncooperative managers.<\/p>\n
\u201cThere are several things that must be wary of regarding the Red and\nWhite Village Cooperatives, such as the risk of the selected manager\u2019s\ninability to professionally manage cooperative businesses, which needs\nto be anticipated,\u201d Esther told ANTARA in Jakarta on Wednesday.<\/p>\n
She assesses that the quality of the cooperative management\u2019s HR is a\ndetermining factor because managerial capabilities will affect the\ncooperative\u2019s business performance.<\/p>\n
Open selection for D3, D4, and S1 graduates from all majors with a\nmaximum age of 35 years and a minimum GPA of 2.75.<\/p>\n
According to Esther, this step needs to be balanced with the\nreadiness of the managers\u2019 capacity to avoid risks in the programme\u2019s\nimplementation.<\/p>\n
She reminds that cooperative management must be accompanied by an\nunderstanding and application of risk management to avoid triggering\nnon-performing loan issues.<\/p>\n
INDEF recommends structured training for managers as well as the\nimplementation of digital-based supervision and evaluation to enhance\nthe cooperatives\u2019 operational effectiveness.<\/p>\n
Furthermore, she warns of the need for careful management considering\nthat each cooperative is planned to receive funding of around Rp3\nbillion to Rp5 billion.<\/p>\n
In total, the funding needs for the Kopdes programme are estimated to\nreach Rp240 trillion to Rp400 trillion, thus requiring a strong\noversight system to ensure sustainability.<\/p>\n
\u201cStrengthening supervision is also needed, starting from coordination\nwith authorities such as OJK, regulatory clarity, to the utilisation of\nintegrated data platforms to monitor cooperative performance and risks,\u201d\nshe said.<\/p>\n
Based on INDEF\u2019s study, the Kopdes Merah Putih programme has the\npotential to strengthen distribution, expand financing access, and\nsupport food security at the village level.<\/p>\n
However, Esther continues, the approach deemed still centralised\nneeds to be balanced with increased community participation so that\ncooperatives can operate according to local needs.<\/p>\n
\u201cThe most profitable business sector depends on the characteristics\nof the area; it cannot be uniform across regions,\u201d she stated.<\/p>\n
She exemplified that fish-producing areas can develop cooperatives\nbased on fishery product processing, from financing access to storage of\nprocessed products.<\/p>\n
Meanwhile, the government states that the Kopdes Merah Putih\nprogramme will establish around 80,000 units across Indonesia with an\nintegrated business model based on village potentials.<\/p>\n
The programme is expected to become a driver of village economies\nwhile increasing community income through strengthening local-based\nbusinesses.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indef-deems-human-resource-strengthening-crucial-for-red-and-white-village-cooperatives-1777438359", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }