Monday, 8 April 2013


Ministry of Cooperatives and Small and Me­dium Businesses (Kemenkop and UKM) stated to con­tinue performing revitalization of cooperatives and rural cooperatives (KUD) across Indonesia. Coopera­tives and KUD revitalization is an attempt to boost role of KUD which is directed toward attainment of success of national security program consisting of agriculture, food anal horticulture, animal husband­ry, fishery, plantation, forestry, and their derivative industries. The revitalization task involves all stake­holders starting from the central, provincial, regental/municipal governments and other related institutions. KUD revitalization consists of strengthening of a harmonious and productive institutional relationship between KUD, Provincial Federation of Rural Cooperatives (Puskud), and Federation of Indonesian Rural Cooperatives (Inkud).

Result of identification conducted by Kemenkop and UKM on all KUD stated that there are 7,088 units are still actively operate business activities, and around 3,589 units are inactive. Production Deputy of Kemenkop and UKM, Braman Setyo, in Jakarta on Thursday (11/22/2012), explained that total number of KUD identified is 10,677 units. Therefore, almost 50% of KUD recorded are inactive. “We provide treatment to them according to condition and specific characteristic of each cooperatives”, Braman said.

He explained that the special treatment is part of cooperatives revitalization program implemented by Kemenkop and UKM. KUD revitalization program will be implemented comprehensively and simultaneously and involving all Echelon I units at Kemenkop and UKM according to their respective task and function. And, there is also an external aspect which is part of partnership, business and market network that will be supported by central and regional governments’ policies. “Revitalization must go on to restore cooperative’ business operation”.

Braman reminded of the challenges faced by cooperatives and KUD operators after the issuance of Cooperatives Law. He mentioned seven challenges faced by Indonesian cooperatives movement after the issuance of Cooperatives Law No. 17/2012 as the Law that once generated criticism from the pub­lic. Yet, however, the government jointly with other cooperatives  movements must be able to face these challenges so that the Cooperatives Law can be fully implemented.

He was optimistic that these challenges could boost a bigger enthusiasm for acceleration of growth and development of cooperatives movement across Indonesia. Eyen, in the midst of the challenges, Indo­nesian cooperatives could make progress and grow. The government end the stakeholders should coop­erate to create a big, independent, strong, and welfare cooperatives to accelerate increase of prosperity and welfare, especially for cooperatives’ members and the local communities. Strong will and hard work of the government and the Indonesian Cooperatives Council (Dekopin) can increase growth of Indonesia's economy.

He also expected all stakeholders to have a uniformed perception to accomplish success of gov­ernment's program related to empowerment of cooperatives and micro, small and medium businesses which is directly related to its potency and strategic role which is proven to support strength and growth of national economy. Braman said that the challeng­es that must be laced and settled are socialization of Law No. 17/2012 to the public on the aspect of principal values and identity of cooperatives, conversion of cooperatives’ capital from primary savings (simpanan pokok) to joining fee with the issuance of cooperatives’ capital certificate (SMKM), conversion of cooperatives saving and loan unit (unit  simpan pinjam) into Saving and Loan Cooperatives (Koperasi Simpan Pinjam), and establishment of Cooperatives’ Deposit Guarantee Agency (LPSK), and amendment of articles of association with the issuance of the new Cooperatives Law.

Business New - November 23, 2012

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