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 the local cooperatives to increase their productive activities using power plant facilities. Cooperatives are responsible for operating and managing the MHP, as well as running the rural businesses by utilising the electricity generated from the MHP.
In alignment with the above mentioned purpose, GIZ cooperated with KUKM to support this initiative through technical review to ensure that the MHP complied with best practices in MHP development and met the design requirement; also to train the management to operate and administer the MHP. Moreover, this cooperation developed the entrepreneurial competence of the management and cooperative members, especially for those who were already running a business. Thereby, the training comprised of various topics such as business identification, marketing, human resource, investment and access to loan, accounting and business planning.
This cooperation continued from 2014 until 2016
For the Participants
By using CEFE Business Canvas Model, the participants could experience the business process, and within short-time, the participants were able to map the potential and opportunities to improve their business, both individually and collectively as a cooperative member. Aside from it, the participants had experienced to achieve business target that consisted of improvement in the four aspects of management, namely marketing, production, human resources and organisation, and financial.
Cooperatives as the training local partners could experience to be the training organisers as well as learnt to do socialisation to the members and rural communities to use the electricity from MHP to leverage their business
Publications on Productive Use of Energy with Cooperative
- Indonesia Energy Situation
- Indonesia: Operational Status of Rural MHP and PV Mini-grids
- Indonesia - Electricity Access for Outer Islands
- Contact the author for further information