Indonesia - Productive Use of Energy through Cooperative

In 2013, Ministry of Cooperative and Small Medium Enterprises (KUKM) initiated the development of ten micro-hydro power (MHP) plants through cooperatives with main purpose to provide electricity for productive uses activities. The program in KUKM had different approaches compared to another rural electrification projects from other ministries which granted the local cooperative directly with the MHP. This choice answers the hesitation on MHP sustainability, such as by addressing ownership into a legal institution that can have profitable activities from the grant.

The aim is mainly to empower local cooperatives to increase their productive activities using power plant facilities. Cooperatives are responsible to operate and manage the MHP, as well as running the rural businesses by utilising the electricity generated from the MHP.