Appointed but Not Yet Working: What Is the Status of Merah Putih Cooperative Managers?

The Decree (Surat Keputusan/SK) appointing managers of Merah Putih Village/Urban Village Cooperatives (Koperasi Desa/Kelurahan Merah Putih/KDKMP) was issued on 23 September 2026. However, the issuance of the Decree does not automatically mean that all managers can immediately commence work.

The process began on 15 April 2026, when the National Selection Committee (Panitia Seleksi Nasional/Panselnas) opened registration for 30,000 KDKMP Manager positions. Following administrative screening, applicants underwent a competency selection process in May and additional selection stages through early June. The results were announced on 5–7 June 2026.

Passing the selection process was not immediately followed by placement. Applicants were still required to undergo basic training in June–July, followed by managerial and field-specific competency training from 17–31 July.

This is where the waiting period becomes an issue. After passing the selection process and completing the training, prospective managers still had to await verification, issuance of the Decree, and placement. Some were reportedly said to have left their previous employment, but had not yet received income from their new employment because they had not yet been placed.

On 17 September, Minister of Cooperatives Ferry Juliantono targeted completion of the placement process no later than 25 September following verification, validation, evaluation, and handover. The Decree was subsequently issued on 23 September. However, the following day, Ferry stated that placement would be carried out by PT Agrinas Pangan Nusantara (Persero) after the Decree had been issued.

This sequence demonstrates that passing the selection process, completing the training, receiving the Decree, obtaining placement, and commencing work are separate stages. The issue, therefore, is when the employment relationship actually begins and what the status of the managers is while they await placement.

Decree Issued, but When Does Work Begin?

The appointment Decree does not resolve all issues concerning the employment relationship. Agrinas stated that managers' salaries would be paid after they had received their placement and commenced active work.

Accordingly, for managers who are still awaiting placement, the issue is not merely when they will begin working, but also what their status is during the waiting period.

This is particularly important for those who had previously left their employment after being declared successful in the selection process. As long as they have not been placed and have not commenced active work, they have not received income from their employment as KDKMP managers.

Therefore, clarity is required regarding when the employment relationship begins, when the two-year contract period is calculated, and from what date salary becomes a manager's entitlement.

Employment Status Was Previously Stated Differently

Another issue concerns the employment status of the managers.

On 22 September, Head of the State-Owned Enterprises Regulatory Agency (Badan Pengaturan BUMN/BP BUMN) Dony Oskaria stated that KDKMP managers were not employees of a state-owned enterprise. According to him, they would serve under a two-year assignment and would be placed under PT Agrinas Pangan Nusantara.

However, the following day, Agrinas President Director Joao Angelo De Sousa Mota stated that KDKMP managers were employees of a state-owned enterprise under Agrinas under a fixed-term employment agreement (Perjanjian Kerja Waktu Tertentu/PKWT) for a period of two years.

Minister of Cooperatives Ferry Juliantono subsequently confirmed that the managers would have PKWT status under Agrinas for two years.

These differing statements are important because the status of the employment relationship determines the managers' rights and obligations, including who their employer is, when the contract period begins, and when their entitlement to wages takes effect.

Who Is Responsible for the Waiting Period?

The waiting period also raises questions regarding the allocation of responsibilities among the relevant institutions.

The Ministry of Cooperatives plays a role in the policy and recruitment process for the managers. BP BUMN has authority over state-owned enterprise policy, while PT Agrinas Pangan Nusantara (Persero) carries out the placement and manages the employment relationships of the managers.

Accordingly, the issue is not merely whether the Government should pay for the waiting period. More fundamentally, it is necessary to ensure that no manager remains in an unclear employment status after having been declared successful and having received the Decree.

Agrinas needs to provide certainty regarding the employment relationship, placement, and payment of the managers' entitlements. Meanwhile, the Ministry of Cooperatives and BP BUMN need to ensure that the allocation of roles and responsibilities under the scheme is clearly understood.

What Do the PKWT Regulations Provide?

If the managers' employment relationships use the PKWT scheme, the applicable arrangements must refer to Government Regulation (PP) Number 35 of 2021 concerning Fixed-Term Employment Agreements (PKWT), outsourcing, working hours and rest periods, and termination of employment.

Accordingly, following the issuance of the Decree, at least several matters need to be clarified to each manager.

First, who is the official employer.

Second, whether each manager has entered into a written PKWT.

Third, when the employment relationship becomes effective.

Fourth, when the two-year contract period is calculated.

Fifth, when salary and allowances become entitlements.

Sixth, what the status of a manager is if the Decree has been issued but placement has not yet taken place.

The last point is important because the date on which the employment relationship commences will determine how the two-year contract period is calculated.

If the contract only takes effect upon placement, this needs to be expressly stated. Likewise, if the employment relationship has taken effect before placement, an explanation is needed regarding the managers' status and entitlements during that period.

Decree Already Issued, Employment Certainty Must Follow

The issuance of the Decree is an important development in the implementation of KDKMP. The Government has also issued Presidential Regulation (Perpres) Number 82 of 2026 concerning the Governance of the Implementation of Merah Putih Village/Urban Village Cooperatives as the governance framework for the program.

However, for managers, administrative certainty must ultimately lead to employment certainty.

They need to know not only where they will be placed, but also who employs them, when they will commence work, when they will receive their salaries, and how their entitlements will be calculated during the contract period.

Accordingly, the issue concerning KDKMP managers is not merely that they have not yet been placed or have not yet received salaries. The fundamental issue is ensuring that the Decree, PKWT, placement, period of employment, and payment of employee entitlements have a clear and consistent relationship.

After being declared successful, completing the training, and receiving the Decree, what is needed is no longer merely certainty that they will work. What is needed is certainty as to when the employment relationship begins and what rights attach from that point onward.