Giving Life to The Cooperative

Irma Tambunan

· 6 minutes read

It is not an easy feat to revive a long-dormant cooperative. Amid pessimism, Riswanto, 49, diligently builds enthusiasm and hope. The results are real: The cooperatives have turned into the foundation of community welfare.

Several achievements are persistently made by the Karya Mukti village cooperative (KUD) in Bungo regency, Jambi, which has been led by Riswanto in the past six years. On the commemoration of Cooperative Day on Thursday (11/7/2019), the KUD Karya Mukti received an award again.

Previously, similar awards were received in 2013 and 2016, aside from the ISPO sustainable palm oil business award last year.

All of those awards did not make him complacent. All of the cooperatives staff members are always reminded that “this achievement is not the final target. All members need to keep raising it together”.

The higher the tree, the harder it would be hit by the wind. However, Riswanto believes that as long as the cooperative has strong roots, its effort will not be shaken. Openness and togetherness must be maintained. These were the two keys that he constantly mentioned.

It also offers online electricity bill payment, organic fertilizers production, deposit and lending, photocopy services, oil palm nurseries, minimarkets and hospitality services

Thanks to these two keys, the performance of the cooperative has soared. Since 2011, the cooperative has developed 18 business units, ranging from production, marketing and business to financial services. It also offers online electricity bill payment, organic fertilizers production, deposit and lending, photocopy services, oil palm nurseries, minimarkets and hospitality services.

Because it can serve the needs of society, its business performance continues to grow. The cooperative’s turnover reaches an average of Rp 100 billion (US$7.18 million) per year. Third-party funds or the deposit that it manages stands at more than Rp 11 billion. This reflects the welfare of the local community.

Not wanting to be complacent, Riswanto encouraged young people to be productive. He made a target, in a year, to build at least two or three new business units. This year, the cooperative started drinking water refilling and plant fertilizer businesses. Next month, it plans to open a sewing and embroidery business.

"They [the youths] have a new spirit and great energy. They only need guidance. All of their abilities will develop," said Riswanto.

Those businesses were initiated and run by high school graduates and university undergraduates. Moreover, they were first trained in skills and business management before actually managing a business unit.

Dropout

His passion in developing the capacity of young people cannot be separated from his experience of being a school dropout. Riswanto was born into a poor family. In order to survive, his father took the family to join the transmigration program from Magelang, Central Java.

In their new home, the Pelepat Ilir area in Bungo regency, the trans-migrants received a 2-hectare plot of land to cultivate. However, because there was not enough capital, the family was unable to work it.

With his difficult economic situation, Riswanto’s education was even discontinued. The hope to continue his education was finally shattered.

"I really hope I can go to university, but it is indeed impossible," he recalled.

In 1992, the family followed a nucleus plantation program (PIR). One local company built an oil palm plantation for the farmers. The PIR program goes hand in hand with the establishment of KUD Karya Mukti. His father also became one of the administrators.

The KUD Karya Mukti has grown rapidly in the last five years. By upholding the principle of openness and togetherness, the cooperative has developed 18 business units with a turnover of more than Rp 100 billion per year.

In addition to Karya Mukti, there were also dozens of other cooperatives in the Pelepat region. Unfortunately, none of them could develop. KUD Karya Mukti itself has been dormant for six years.

By 2000, the government and the private sector were collaborating to provide credit for the primary cooperative members. The program aims to complete all the credit application process for smallholders in many areas. Karya Mukti was appointed to process the credit application for 5,000 farmers who were members of 13 cooperatives in the Pelepat region. We can imagine the burden of the cooperative at the time.

I was even called a training expert. Because every time there was a cooperative training, I would definitely be included,"

Riswanto’s father helped with the work. Riswanto was taught about cooperatives through various training activities and comparative studies that were often held by the regional administration.

"I was even called a training expert. Because every time there was a cooperative training, I would definitely be included," he said laughing. Perhaps, all of the training was intended by his father to replace the knowledge that Riswanto would have gained at a university.

The knowledge about cooperatives was absorbed quickly and applied. The credit application process for farmers was finally complete in 2011.

After finishing the assignment, Riswanto began to think about the role of the cooperatives. After being elected as chairman in 2013, he invited all administrators to build new business units.

Initially, some fellow administrators had doubts about the plan. They worried about the risks if the business failed. However, Riswanto tried to convince them.

"If it is developed smartly while seeing the needs of society, the business must be able to progress quickly," he said.

Now, 18 business units that have been built have successfully shown an increase in sales. The assets of the cooperative are even greater.

Riswanto still remembers his father\'s message before he died: Keep developing the cooperative, keep maintaining its good reputation. The message drove him to continue reviving the cooperative.

So far, there are three cooperatives in the region that have received grants and equity participation. Their staff members are also supported through a number of mentoring programs. Riswanto was determined to spread the success of KUD Karya Mukti to other cooperatives in the vicinity.

If the cooperative\'s business grows, unemployment will be overcome. The economy of the people will increase. That is the real role of a cooperative.

Riswanto

Born: Magelang, 13 November 1970

Wife: Indarti (39)

Children: Ahmad Arif Kurniawan (22) and Rio Prayoga (16)

Education : STM Maarif Salam, Magelang (1987-1990)

Achievement:

- Bhakti Koperasi and UKM Award in 2017

- ISPO Awards 2017 for the cooperative as the first oil palm plantation to have sustainable certificate

- Award for KUD Karya Mukti on Cooperative Day in 2013, 2016 and 2019

Editor:

kompascetak kud karya mukti riswanto