The role of cooperatives is deemed necessary to expand into the mining industry sector to suppress the adverse impacts of environmental management by large corporations. Chairman of the Association of Strategic Socio-Economic Cadres (AKSES), Suroto, emphasized that the high-risk and capital-intensive mining sector is not the sole monopoly of private or multinational corporations. Cooperatives that possess adequate managerial and financial capacities have the same constitutional right to manage the country's natural resources.
Suroto pointed to the success of the United States, where cooperatives have actively managed the mining and oil refining (refinery) sector with mature risk management since the 1920s. This proves that with professional governance, cooperatives are capable of competing in heavy industry sectors that have so far been considered exclusive to capitalistic entities.
The involvement of cooperatives in the extractive industry is considered crucial to prevent the widespread practice of bad mining. Unlike conventional corporations that often ignore environmental safety to pursue profit accumulation for a handful of shareholders, cooperatives uphold the principles of social justice. The orientation of cooperatives is based on creating mutual benefits for all stakeholders, especially the local communities around the mining areas.
Furthermore, the cooperative business model places the community in the mining ring area not just as spectators, but as members as well as business owners. This inclusive approach is believed to be able to minimize social conflicts and ensure that the yields of natural resources are truly distributed fairly for the sustainable welfare of the local community.
