The United Nations has announced that 2025 is the International Year of Cooperatives which aims to underline the role of cooperatives in sustainable development and make cooperatives an essential solution to face today’s global challenges, with the main theme “Cooperative Build a Better World”. In line with the role of cooperatives which have an important position in economic development, following the instructions of President Prabowo Subianto who also stated his support for efforts to mobilize cooperatives in Indonesia, which is based on the belief that cooperatives are a means to help the Indonesian people at a still weak economic level. Minister of Cooperatives Budi Arie also added that challenges in Cooperatives can be resolved by supporting each other, by the core of the cooperative itself which is a joint effort, and by contributing to the livelihoods of many people. 

The role of cooperatives is now increasingly relevant, involving multiple parties and becoming a forum from generation to generation. Currently, the Ministry of Cooperatives (Kemenkop) is designing a strategic plan for 2025 and mapping out future priorities. There are four strategies to improve the competitiveness of cooperatives through technological innovation, business diversification, increasing member capacity, and strategic partnerships. On the other hand, the digitalization of cooperatives will increase the economic independence of its members and expand access to financing and marketing, with technology it is hoped that cooperatives will be more adaptive, and relevant and can attract new members and the general public to participate. 

February 5, 2025, the Ministry of Cooperatives through Ferry Juliantono as Deputy Minister, and Aditya as Head of Institutional and Cooperatives received a visit from Rumah Energi to discuss policies and concepts of Green Cooperatives that can support the Ministry’s target in realizing its role in the Sustainable Development Goals (SDGs) through a green economy and supporting the Free Nutritious Meal Program (MBG) which is a government priority program. 

Executive Director of Rumah Energi Sumanda Tondang said that Rumah Energi has successfully had a pilot project of 5 Cooperatives that have implemented a climate-friendly business diversification scheme such as KAN Jabung Syariah East Java, KPSP Setia Kawan East Java, KUD Sumber Makmur East Java, Kopdit CU Sauan Sibarrung South Sulawesi, and KSPPS Tekun Sahabat Mandiri Central Java, and has conducted a survey in 8 Provinces, 82 Cooperative Offices, 87 registered Cooperatives and 11 Cooperatives through focus group discussions regarding the challenges experienced by cooperatives to date. It was found that the biggest challenges are regarding institutional governance, regeneration of cooperative members, development of business units, and capital. The Ministry of Cooperatives is expected to be able to assist the Cooperative Offices at the provincial and city/district levels to have the same understanding regarding the standard SoP/ADART/SOM regarding the management of managerial institutions and administrative standards in managing cooperatives. 

Another important factor is increasing capacity or refreshment for facilitators and regeneration of Cooperative Management. The human resources that accompany are expected to be proportional to the number of cooperatives being assisted or the use of technology and digital to facilitate the work of assistance, then comprehensive socialization related to the implementation of Permenkop 8 of 2023, especially regarding capital or financing and input for the new roadmap, namely green cooperatives. 

In the meeting, Rumah Energi also expressed its support for the Ministry of Cooperatives in providing active solutions in the field such as creating training modules that support the concept of Environment, Social and Governance (ESG) that can be applied. These modules will also be disseminated to the Cooperative Service and Cooperative Institutions this year, with the hope that there will be improvements in the governance system and become input for cooperatives and cooperative services in realizing the concept of green cooperatives in their regions.  

Continuing the discussion, the Deputy Minister of Cooperatives said that currently, cooperatives are transitioning towards industry by implementing the principle of sustainability, where currently everyone tends to be corporate rather than cooperative, while what is most possible to implement ESG is sustainable people’s cooperatives. This means that the Ministry of Cooperatives and Rumah Energi are in line and support all efforts made and will analyze the operational manual of green cooperatives that have been created by Rumah Energi to be used as recommendations in regulations or policies. The slogan Let’s Cooperative is echoed to create an Empowered Indonesia. 

Written by: Jenni Irene Connie 

Edited by: Fauzan Ramadhan