Indonesian Political, Business & Finance News

Co-operatives Ministry: KDKMP’s Success Cannot Rely on Managers Alone

| Source: ANTARA_ID Translated from Indonesian | Business
Co-operatives Ministry: KDKMP’s Success Cannot Rely on Managers Alone
Image: ANTARA_ID

Jakarta (ANTARA) – The Ministry of Co-operatives has stressed that the successful operation of Red and White Village/Sub-district Co-operatives (KDKMP) cannot rely solely on managers, but requires the active involvement of members, boards and supervisory bodies in developing co-operative businesses.

Destry Anna Sari, the ministry’s Deputy for Co-operative Talent Development and Competitiveness, said managers who have completed training and preparation are part of the co-operative management ecosystem, but are not the sole determinant of business success.

“Putting managers in place is an initial step, but a manager is only one link in the chain. They are not everything; all our efforts start with the key talent, namely the co-operative members,” Destry said in Jakarta on Friday.

She said co-operative competitiveness rests on two elements that must be strengthened together: the quality of human resources and the business ecosystem.

Members play a central role, she said, because they fulfil four functions at once: owner, investor, producer and market.

As a result, efforts to build co-operative capacity cannot focus only on managers responsible for day-to-day operations. Members, board members and supervisors also need to understand members’ economic potential and the needs that could be developed into business activities.

Destry said boards and supervisory bodies carry out their mandate on behalf of members, who own the co-operative, while managers are responsible for day-to-day operational management.

She added that the distribution of subsidised goods by co-operatives should be seen as an entry point for business development, not as the ultimate goal of KDKMP businesses.

She said co-operatives should continue to explore the economic potential of their members and villages, while ensuring that members retain control of the co-operative.

“Co-operatives cannot be supported by managers alone. Talent is developed from the ground up through public literacy efforts, including at universities and primary and secondary schools, followed by the joint strengthening of the capacities of members, board members, supervisors and managers,” Destry said.

The Ministry of Co-operatives recorded that 26,911 KDKMP managers had signed employment contracts, out of 28,624 people who had completed the recruitment and certification stages. The managers have also been placed at co-operatives in various regions across Indonesia.

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