Professional Certification as a Strategy to Strengthen the Institutional Capacity of Village Cooperatives in Supporting People's Economy

Abstract

The Red and White Village/Sub-district Cooperative (KDMP) program was launched by the Indonesian government as a strategic instrument to strengthen people-based economy, grounded in Article 33 of the 1945 Constitution, with tens of thousands of cooperative units targeted to operate nationwide. The success of this program largely depends on the institutional capacity of the cooperatives, one of the main pillars of which is the professional competence of their managers. The government, through the Ministry of Cooperatives in collaboration with the National Professional Certification Agency (BNSP), has been conducting simultaneous competency certification for KDMP managers and treasurers across regions. This article aims to analyze the role of professional certification as a strategy to strengthen the institutional capacity of village cooperatives in supporting people-based economy. This research employs a descriptive qualitative approach through a literature study of regulations, policy documents, and recent scholarly publications related to KDMP. The findings indicate that professional certification contributes to three main aspects: improved institutional governance and accountability, strengthened member and community trust, and mitigation of operational and financial risks. Nevertheless, implementation challenges remain, including regional disparities in human resource quality, limited training duration, and the risk of certification becoming a mere administrative formality. This article recommends strengthening post-certification mentoring systems and continuous evaluation to ensure that professional certification genuinely functions as an effective instrument for institutional capacity building.