Indef: KDMP Manager Commitment Better Secured Through Employment Contracts

Jakarta (ANTARA) - The Institute for Development of Economics and Finance (Indef) considers the committee’s decision to cancel the Rp100 million penalty provision for prospective managers of the Koperasi Desa Merah Putih (KDMP) to be a correct step, as participant commitment can be maintained through clear employment contracts. Indef’s Head of Macroeconomics and Finance Centre, M. Rizal Taufikurrahman, stated that an approach based on incentives and professional employment contracts is more effective than imposing financial sanctions in maintaining programme participants’ commitment. “Regarding the cancellation of the Rp100 million penalty for managers who resign, this step is more appropriate from an institutional economics perspective,” Rizal said in a statement in Jakarta on Wednesday. He assessed that the previous penalty provision was intended to ensure participants remained committed after receiving state-funded education and training. However, he continued, the policy actually generated resistance and potentially reduced the interest of the best talent in engaging in cooperative management. “An approach based on incentives and professional employment contracts is more effective than punishments that potentially reduce the interest of the best talent,” he said. Rizal believes that the quality of human resources will be one of the determining factors for the success of the KDMP programme. He said the selection process and human resource management need to be professionally designed to attract and retain competent management personnel. Furthermore, Rizal assessed that the success of KDMP does not only depend on the number of cooperatives established, but also on the quality of governance and human resource capacity. He said cooperatives have great potential to become the driving force of the village economy because they can integrate production, distribution, financing, and marketing activities within a single business ecosystem. Nevertheless, experience shows that many cooperatives become inactive due to weak governance and human resource capacity. Therefore, the target of establishing a large number of cooperatives must be balanced with strengthening management, digitalisation, and an adequate supervisory system. He encouraged the government to build a transparent recruitment system, continuous training, digital audits, and measurable performance indicators so that cooperatives can develop into sustainable village economic growth centres. The National Selection Committee (Panselnas) revoked the requirement for a financial consequence in the form of a Rp100 million penalty for participants in the 2026 human resources selection for KDMP and Kampung Nelayan Merah Putih. Through Announcement Number 09 of 2026, signed by Deputy Head of the State-Owned Enterprise Regulatory Body Tedi Bharata on 17 June 2026, Panselnas stated that the penalty provision previously listed in Appendix I of the Statement Letter Point 13 is no longer valid. The provision had come under scrutiny after several participants withdrew upon being declared successful in the selection, citing objections to the penalty clause if they did not complete certain programme stages. In addition to revoking the provision, Panselnas also reopened the opportunity for participants who had previously withdrawn to confirm their willingness to participate in the training and human resource development stages through the official Panselnas portal from 17 to 23 June 2026.