[Part 5]It is somewhat accurate to say that the policies of Indonesia's Minister of Energy and Mineral Resources (Menteri ESDM), Bahlil Lahadalia, have faced criticism and controversy that some interpret as frequent blunders. Several strong examples support this perception.One notable example is the tightened distribution controls on the subsidised 3 kg LPG cylinders, which caused shortages in various regions and public dissatisfaction. The government had to reverse parts of this policy after President Prabowo intervened due to public outcry, highlighting coordination issues within the ministry. This incident was widely regarded as a policy mistake because it disrupted household energy access and created confusion among consumers.Another controversial decision was the mandate to apply energy efficiency labels on all water dispensers sold domestically and imported, which was seen as abruptly implemented without adequate preparation or industry readiness. Such measures were criticised for potentially increasing costs and complicating consumer choice without sufficient public education.There were accusations about questionable academic credentials and a dragged-out ethics case involving the minister, which fueled negative perceptions about his professionalism and decision-making. Despite these issues, the government still awarded him the prestigious Bintang Mahaputera honor, reflecting an official appreciation of his overall contributions alongside the public critiques.The video capturing Minister Bahlil Lahadalia subtly poking Rosan Roeslani, the CEO of Danantara, during President Prabowo Subianto’s impassioned speech about illegal mining and a staggering Rp 300 trillion state loss, has stirred a whirlwind of reactions online. While Prabowo was delivering a stern message about eradicating unlawful smelters, Bahlil’s gesture—caught on camera—appeared oddly casual, even cheeky, given the gravity of the moment.Public commentary has ranged from bemused to critical. Some netizens interpreted the poke as a sign of camaraderie or an inside joke, while others saw it as a tone-deaf move, undermining the seriousness of the president’s address. The juxtaposition of Prabowo’s fiery rhetoric with Bahlil’s light-hearted nudge has become meme fodder, with captions like “300 Trillion? Santai aja bro…” circulating widely. The lack of official clarification from either Bahlil or Rosan has only fuelled speculation, leaving the public to decode the gesture through their own lenses—some humorous, others suspicious.The fuel shortages at private fuel stations (SPBU Swasta) are indeed linked to policies implemented by the Ministry of Energy and Mineral Resources (ESDM). A major contributing factor is the change in import license regulations that shifted from annual permits to half-yearly issuance with evaluations every three months. This tighter control reduces import flexibility and effectively cuts import quotas for private operators by nearly 50%, causing difficulties in securing sufficient fuel stocks.Critics argue that forcing private fuel stations to buy fuels solely through Pertamina also raises costs and limits competition. Previously, private operators could import fuel from diverse sources at potentially lower prices. The policy now restricts import options, making private operator supplies dependent on Pertamina’s pricing and availability. This shift has created supply bottlenecks and fuel scarcity at many private stations.Additional regulatory hurdles, tender delays, and logistical challenges compound the situation, preventing adequate replenishment of stocks. Although the government has increased private sector fuel import quotas by about 10% in 2025, implementation delays and the restrictive import licensing scheme remain key obstacles. Some experts and lawmakers emphasise that these policy choices have inadvertently triggered or worsened the shortage.In summary, the Ministry’s regulatory framework and import licensing changes play a significant role in the fuel scarcity experienced by private fuel stations, alongside market demand shifts and logistical constraints.The fuel shortage at private gas stations (SPBU Swasta) in Indonesia from the beginning up to the present has been caused by several intertwined factors, producing a complex crisis. Starting in early 2025, the problem arose as consumers increasingly shifted away from Pertamina’s subsidised fuel products due to concerns about fuel quality and stricter eligibility rules under a new registration system for the subsidised Pertalite fuel. This drove up demand sharply for non-subsidised fuels such as RON 92 and higher, which are predominantly sold by private fuel retailers like Shell, BP, and Vivo Energy.
Simultaneously, the Ministry of Energy and Mineral Resources introduced restrictive regulations on the import of non-subsidised fuels, shifting import permits from an annual to a half-yearly issuance subject to periodic reviews. In addition, private retailers were required to purchase their imported fuel through Pertamina’s import quota, which was supposed to centralise control, but in practice, created bottlenecks and limited flexibility for private operators. Pertamina’s own capacity issues and prior scandals concerning fuel quality further weakened public trust in state fuel supplies.
The surge in demand for non-subsidised fuel due to policy changes, combined with the tighter import regulations, squeezed private fuel retailers’ ability to maintain sufficient stocks. Several private companies struggled to agree on purchase terms with Pertamina for base fuel imports, particularly due to disagreements over product specifications, such as ethanol content variations. Delays and bureaucratic hurdles in procurement compounded the supply disruptions.
Throughout mid-2025 and into September, fuel shortages worsened, leading to reports of empty pumps at many private fuel stations in key urban regions like Jakarta, Banten, and West Java. Notably, Shell Indonesia experienced a near-total outage of gasoline grades at its stations, and BP reported limited stocks for several products. The government responded by increasing fuel import quotas for private retailers by approximately 10%, but logistical and regulatory challenges persisted. These issues were exacerbated by a corruption scandal involving Pertamina Patra Niaga, which further eroded consumer confidence and shifted more customers to private stations, increasing demand pressures.By October 2025, coordination efforts between the government, Pertamina, and private fuel retailers continued to try to alleviate the shortages. The allocation of base fuel volumes from Pertamina to private operators began, but uptake was slow, partly due to concerns about product quality differences and pricing. The import licensing process stayed complicated and restrictive, leaving many private stations struggling with stock consistency.In essence, the fuel shortage in private gas stations is a consequence of demand shifts away from subsidised state fuel, restrictive government import regulation, limited fuel import capacity channeled through Pertamina, logistic complications, and loss of consumer trust in public fuels. This multi-layered crisis underscores the challenges of managing a regulated fuel market amidst changing policy, public sentiment, and supply chain realities.Back to our topic again.
Cooperatives offer several advantages that set them apart from traditional business models. At their core, they prioritise people over profit, creating inclusive spaces where members are both owners and beneficiaries. This democratic structure ensures that decisions are made collectively, which strengthens trust, fosters mutual accountability, and nurtures a sense of shared purpose. Cooperatives are often more resilient during economic downturns, as their focus on long-term well-being and local sustainability shields them from the volatility of speculative markets. They also tend to reinvest surpluses into community development, education, and social welfare, making them powerful tools for equitable economic growth.
At the very beginning, a cooperative usually starts with a group of individuals who share a common need or interest, such as access to credit, affordable goods, or opportunities to market their products. They come together not as passive customers, but as active members who pool their resources and agree on collective rules to guide their shared organisation. This foundation is built on the principle that every member has equal rights, regardless of how much money they put in, and decisions are made democratically through meetings and voting.Once established, the cooperative is formally registered so that it has legal standing, allowing it to operate just like any other business. The members then contribute capital, either through membership fees or shares, which becomes the initial fund to start operations. With these funds, the cooperative can buy equipment, stock up on goods, or provide loans, depending on its type. From that point forward, the cooperative begins functioning as an enterprise that is owned and managed by its members.As it operates, the cooperative does business not to maximise profits for outside investors, but to meet the needs of its members. For example, a consumer cooperative buys goods in bulk and sells them at fair prices to its members, while a credit cooperative provides affordable loans. The surplus or profit generated is not taken by a few individuals, but is distributed fairly. Usually, this distribution follows three channels: a portion is returned to members based on their transactions with the cooperative, another portion is reinvested to strengthen the cooperative, and a final portion may be reserved for social purposes.However, cooperatives also face notable challenges. Because they rely heavily on member participation, a lack of engagement or leadership can stall progress and create internal conflicts. Raising capital can be difficult, as cooperatives generally avoid speculative investors who might compromise their values. Additionally, navigating legal and bureaucratic systems that are designed for profit-oriented corporations can be cumbersome. While their democratic nature is a strength, it can also slow down decision-making in urgent situations. Lastly, cooperatives often struggle with visibility and recognition in a marketplace dominated by aggressive branding and corporate lobbying. Despite these obstacles, many cooperatives continue to thrive, driven by solidarity, trust, and a deep commitment to social and economic justice.
The principles of cooperative financing are rooted in mutual trust, member participation, and equitable growth. Rather than relying on external investors whose primary goal is profit, cooperatives draw their financial strength from the contributions and savings of their own members. Each member typically owns a share in the cooperative and has an equal say in financial decisions, regardless of the size of their investment. This democratic model ensures that the cooperative's financial strategies serve the needs of the collective rather than the interests of a few. Surpluses are not distributed based on capital invested, but are either reinvested to improve services or distributed among members in proportion to their participation or usage. Transparency, accountability, and a focus on long-term sustainability are key characteristics that distinguish cooperative financing from conventional capitalist funding models.Cooperative financing operates on a foundation that contrasts sharply with traditional capitalist models. While private enterprises often depend on venture capital, banks, or shareholders seeking maximum returns, cooperatives are primarily funded by their own members through share capital, savings, and member contributions. This approach fosters a sense of ownership and responsibility among the members, as they are not just clients but co-owners who shape the financial direction of the institution.Access to capital in a cooperative is not dictated by one's wealth or status, but by one’s commitment to the shared goals. When loans are issued—whether to individual members or to fund cooperative ventures—they are guided not by profit margins but by social and economic value to the members. The interest charged is usually moderate and designed to sustain the cooperative rather than to enrich it. Furthermore, profits—more accurately called 'surpluses'—are reinvested into the cooperative or redistributed among members according to how much they have used the cooperative's services, not how much they have invested in cash.Because cooperatives exist to serve their members, not external investors, their financial decisions are made with a long-term perspective in mind. Financial transparency, democratic governance, and an emphasis on financial literacy among members are crucial. This ensures that money is not just circulating within the system, but doing so with purpose: empowering people, supporting local development, and resisting exploitative financial models. Cooperative financing, therefore, is less about multiplying wealth and more about multiplying well-being.The role of the state in supporting cooperatives is both foundational and strategic. Governments are expected to create an enabling environment in which cooperatives can grow, thrive, and compete fairly with other forms of enterprise. This involves providing a legal framework that recognises the unique identity of cooperatives, offering fiscal incentives, and ensuring access to training, education, and markets.In terms of financing, the state may provide low-interest loans, grants, or credit guarantee schemes tailored specifically for cooperatives. Public banks and cooperative development funds are often established to strengthen their capital base without compromising their autonomy. Equally important is the role of the government in ensuring that cooperatives are not marginalised by large corporations or excluded from public procurement opportunities.The financing of cooperatives is distinct because it is structured around community contribution, internal capital formation, and collective responsibility. Unlike conventional businesses that typically seek capital from private investors or commercial banks, cooperatives are primarily funded through member shares, savings, retained surpluses, and member-based loan systems. This grassroots model ensures that the cooperative remains accountable to its own community rather than to external profit-driven interests.Members usually purchase shares when they join, providing the cooperative with essential startup capital. In many cases, members also contribute regularly through savings or monthly dues, which strengthen the internal capital pool. If the cooperative needs additional funding, it might access loans from cooperative banks, government-supported financial institutions, or mutual guarantee funds designed to support collective enterprises. Importantly, the use of retained earnings—profits kept within the organisation—helps cooperatives grow sustainably without diluting ownership or values.However, this model requires a high level of trust, transparency, and participation. The financial health of a cooperative depends not just on how much money it has, but on how well the members manage and reinvest it together. In successful cooperatives, every rupiah is treated not as personal gain, but as a shared tool for collective empowerment. The capital is not just money—it is mutual confidence put into action.When it comes to nurturing cooperatives, the state can play a crucial role in capacity-building through technical assistance, mentorship programmes, and continuous education. Ministries or dedicated cooperative agencies should act not as controllers, but as facilitators who respect the democratic and grassroots nature of cooperatives. Rather than imposing top-down models, the government’s role should be to listen, support, and empower cooperatives to serve their members effectively while contributing to broader social and economic goals such as equity, inclusion, and sustainable development.
Throughout the history of cooperatives, their failures have often stemmed not from the concept itself, but from flaws in execution, governance, and external pressures. One of the most common causes of cooperative failure is weak internal leadership—when those in charge lack the vision, skills, or integrity to guide the organisation effectively, it becomes vulnerable to mismanagement and internal conflict. Another recurring issue is low member participation. Cooperatives thrive on active engagement, but when members become passive or disengaged, the democratic structure collapses, and accountability fades.Financial mismanagement is also a major culprit. Without proper training in cooperative finance, some leaders may treat the organisation like a personal enterprise or fail to adapt to changing economic conditions. Additionally, corruption and nepotism have historically plagued some cooperatives, turning what should be a collective effort into a playground for private interests.On the external side, some cooperatives have struggled because of inadequate government support, predatory competition from big corporations, or rigid bureaucratic regulations that ignore the unique structure of cooperatives. In many cases, cooperatives are forced to operate in environments designed for profit-maximising businesses, not for collective welfare models.Ultimately, what causes cooperatives to fail is rarely the idea itself—it’s the lack of trust, transparency, education, and commitment to shared values that brings them down. When cooperatives forget their roots and start imitating corporate structures, they often lose the very essence that makes them resilient and meaningful.The values and purpose of a cooperative are deeply rooted in the principles of solidarity, equity, and mutual aid. Unlike conventional businesses driven primarily by profit, cooperatives exist to meet the common needs and aspirations of their members. They are founded on values such as self-help, self-responsibility, democracy, equality, and social responsibility. These are not just slogans—they form the ethical backbone of the cooperative movement, guiding every decision and action.The values and goals of cooperatives are not abstract ideals, but practical principles that shape how people work, govern, and live together. At the heart of every cooperative lies the value of self-help, where individuals come together not because they are weak, but because they know they are stronger as a collective. It’s about taking initiative rather than waiting for outside intervention. Alongside that is self-responsibility, which reminds every member that the cooperative’s success depends on their own commitment—not just on paper, but in action.Democracy is a cornerstone value, meaning that every member has a voice, regardless of how much capital they contribute. Decisions are made collectively, not dictated from above. This is deeply tied to equality, where no one is more important than anyone else, and power is shared, not concentrated. Equity, in the cooperative sense, also means recognising that people have different needs and contributions—and addressing those differences fairly, not just equally.Another key value is solidarity. Cooperatives are not just about internal strength; they exist to support one another, often across regions and even countries. Members stand together not just when times are good, but especially during hardship. And then there's social responsibility—the belief that cooperatives must contribute to the greater good. They aren’t isolated money-making machines, but part of a larger movement that cares for communities, workers’ rights, environmental sustainability, and social justice.The ultimate goal of a cooperative is not to maximise financial gain, but to empower its members economically and socially. It aims to create spaces where people can pool their resources, share risks, and build collective strength. Through cooperation, members seek not only better economic conditions but also dignity, voice, and control over their working and living environments. A cooperative is both an economic entity and a social movement, aiming to reshape society from the ground up—making it fairer, more participatory, and more humane.The ultimate goal of a cooperative is people-centred development. It’s about building an economy that serves human needs, not just market demands. Cooperatives aim to give ordinary people control over their work, their resources, and their futures—creating dignity in labour, fairness in distribution, and meaning in participation.In this way, cooperatives function as real-world alternatives to exploitative systems. Their purpose is to put people over profit, community over competition, and cooperation over coercion. They strive to build not just wealth, but well-being.
[Part 3]
