InfoSAWIT, POHUWATO – The existence of KIB Cooperative has come under growing scrutiny amid allegations that it was not established based on smallholder aspirations, but rather through internal company decisions.

Reported by InfoSAWIT from official information, on Thursday (April 9, 2026), community representatives claimed that the cooperative’s formation did not follow the mandatory member deliberation process, a fundamental principle in cooperative governance.

Local figures argued that the cooperative appears to have been formed in a top-down manner, undermining its legitimacy as a member-driven institution.

Criticism intensified following media statements suggesting that the company played a dominant role in establishing the cooperative.

Under cooperative principles, member participation and democratic decision-making are essential. The absence of these elements raises concerns over legal compliance and governance integrity.

Smallholders have expressed frustration over their exclusion from the process, questioning whether the cooperative can genuinely represent their interests.

Observers warn that if the allegations are proven, the cooperative’s legal standing could be challenged for failing to meet core requirements such as transparency and member participation.

So far, neither the company nor the cooperative’s management has issued an official response. Local communities are urging authorities to conduct a thorough evaluation to ensure that cooperatives truly serve their members’ interests. (T2)