Indef: KDMP Manager Commitment Better Secured Through Employment Contracts
Jakarta (ANTARA) - The Institute for Development of Excellence and Finance (Indef) believes that the committee’s decision to cancel the Rp100 million penalty provision for prospective managers of the Merah Putih Village Cooperative (KDMP) is the correct move, as participant commitment can be maintained through clear employment contracts.
The Head of the Macroeconomics and Finance Centre at Indef, M. Rizal Taufikurrahman, stated that an approach based on incentives and professional employment contracts is more effective than applying financial sanctions to maintain the commitment of programme participants.
“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 noted that the previous penalty provision was intended to ensure that participants remained committed after receiving state-funded education and training. However, he continued, the policy instead triggered resistance and had the potential to reduce the interest of top talent in participating 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 assessed that the quality of human resources will be one of the determining factors for the success of the KDMP programme. He stated that the selection process and human resource management need to be designed professionally to attract and retain competent management personnel.
Furthermore, Rizal believes that the success of the KDMP does not only depend on the number of cooperatives formed, but also on the quality of governance and the capacity of its human resources. He noted that cooperatives have great potential to become drivers 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 forming a large number of cooperatives must be balanced with management strengthening, digitalisation, and adequate supervision systems.
He encouraged the government to build transparent recruitment systems, continuous training, digital audits, and measurable performance indicators so that cooperatives can develop into sustainable centres for village economic growth.
The National Selection Committee (Panselnas) has revoked the financial consequence provision in the form of a Rp100 million penalty for human resource selection participants for the KDMP and Merah Putih Fishing Village for 2026.
Through Announcement Number 09 of 2026, signed by the Deputy Head of the SOE Regulatory Agency, Tedi Bharata, on 17 June 2026, Panselnas stated that the penalty provision previously listed in Appendix I of Statement Letter Point 13 is no longer applicable.
The provision had come under scrutiny after several participants who had passed the selection chose to withdraw due to objections to the penalty clause if certain programme stages were not completed.
In addition to revoking the provision, Panselnas has also reopened the opportunity for participants who previously withdrew to confirm their willingness to undergo human resource training and development stages through the official Panselnas portal between 17–23 June 2026.