This Focus Group Discussion (FGD) is a follow-up to ICCI’s intensive hearings and discussions with the Ministry of Cooperatives and SMEs about the urgency of multi-stakeholder cooperatives in Indonesia. Previously ICCI had an audience on December 3, 2020 (click here). Then also conduct a poll whose results can be seen (here).

This FGD brought together practitioners who have tried to build the embryo of a multi-stakeholder cooperative. The participants were previously recruited through a poll held by ICCI on January 19, 2021. So that the participants were more or less aware of the multi-stakeholder cooperative model.

As the trigger for the Deputy for Cooperative Development and Reform, two speakers were presented: Firdaus Putra, HC., Chair of the ICCI Executive Committee and Untung Tri Basuki, Cooperative Activist and Expert. On the first occasion, Firdaus explained the history and development of multi-stakeholder cooperatives abroad. Then provide a brief analysis of how the model is relevant to the needs of Indonesia today.

Firdaus explained that there is a challenge of model stagnation in which Indonesian cooperatives since 1992 until now have not had new institutional models compared to other countries (for example: startup coop, platform coop, community coop, social coop, worker coop, etc.). Then there are socio-cultural challenges where many practices are deeply rooted in society, which position the parties dichotomically/diametrically (eg: producers vs. collectors, marketers vs. producers, producers vs. consumers).

There are also business model challenges and institutional deadlocks in which various new business models cannot be implemented due to institutional limitations (for example: coop platforms and the like with a collaborative economy pattern). This is widely recognized by the development of business startups with various innovative business models.

On the other hand, Firdaus said that we have to look at the challenges of the era in which the technology economy presents new business models (for example: collaborative economy/sharing economy). Another variable is the demographic challenge where the demographic bonus presents creative talents who are stretched in various sectors (for example: thousands of Indonesian startups initiated by millennials).

Also the growth of the middle class in Indonesia is a great potential for the development of cooperative resources, unfortunately it cannot be maximised due to institutional deadlock (eg production cooperatives do not accept individual members who act as investors).

By looking at the various strategic challenges, this multi-stakeholder cooperative model becomes very relevant as a lever for the collective economy in society. Which is also a solution to the limitations of the conventional cooperative model which cannot accommodate various changes and new demands.

Then continued by the second speaker, Untung Tri Basuki, who emphasized that as long as the law does not prohibit it, it means there is no problem. What is needed is further/special arrangements, so that there is legal certainty for the community. Because this model does have some differences with conventional ones.

Untung also underlined how this multi-stakeholder cooperative must rely on the identity of the cooperative, especially ICIS 1995. For example, by setting a certain limit on capital, it could be given a maximum limit of 20 percent on its proportional rights voting. The aim is not to damage the distinctive character of cooperatives as democratic companies.

After the presentation session, it was continued with a session on exploring issues that needed further regulation. On that occasion, Ahmad Zabadi, Deputy for Cooperatives said, “I want the draft Permenkop to be ready in two weeks or a maximum of one month. So that in this FGD we focus on multi-stakeholder cooperatives first. Other issues that have not been accommodated can become notes that will be input in the discussion of the upcoming revision of the Cooperative Law,” he explained.

In the problem absorption session, Dewi Hutabarat, HC., ICCI Expert Council acted as a facilitator. Through this session, participants explored various detailed issues. Many participants raised issues that needed to be regulated, both from the zoom room (online) and the hotel room (offline).

The activity was held on April 7, 2021 at the Phoenix Hotel, Yogyakarta, which was attended by 30 offline participants: cooperatives, universities, study centers, and related futures. And there are 50 online participants from embryo cooperatives from various provinces in Indonesia. []