Cooperatives’ Success Stories A Model for Replication
By
·5 minutes read
Kompas/Ferganata Indra Riatmoko
A saleswoman arranges products in Tomira (the people’s store) on Jl. Wates, Kulon Progo regency, Yogyakarta, on Wednesday (29/3). The modern retail store is managed by a cooperative and has a display space for local Kulon Progo products.
JAKARTA, KOMPAS – To promote an economy based on mutual cooperation (gotong royong) through cooperatives, the success stories of some cooperatives in one area can be replicated in other places.
Kompas met the managers of several successful cooperatives in a number of areas last week and on Tuesday. They said that their ups and downs in achieving success in running their cooperatives could be used as a motivation for a mutual cooperation-based economy.
Their stories, such as running a business for decades, assets that reach trillions of rupiah, membership that reach hundreds of thousands, and the many benefits can be enjoyed by many people, can be testament to the success of cooperatives.
"We started out with no salaries. Everyone worked without payment. Over time, we began to earn Rp 5,000 a month, and later on, board members could earn millions of rupiah a month. Thanks be to God," said I Gusti Wayan Sepatika, 76, a founder of the Denbantas Village Cooperative (KUD Debantas), recounting the history of the cooperative established 43 years ago in Debantas village, Tabanan regency, Bali.
He suggested that in running a cooperative, the board could never manipulate the data of financial reports. Falsifying the numbers to make the financial report look good could be the beginning of the end of the cooperative.
From year to year, KUD Denbantas, which offers savings and loans services to its members, faces competition from commercial banks, other cooperatives, and village empowerment institutions.
As its competitors also run savings and loans business, KUD Debantas will also follow the trend of offering prizes like a motorcycle and other goods to lure customers.
Honesty
According to the chairman of the Mandiri credit union (Mandiri CU), Justinus P Tamba, the cooperative could grow and survive due to its board’s ability to maintain and promote honesty and togetherness.
The cooperative’s existence also proved to be very helpful to the families of its members, of whom 80 percent are farmers.
Currently, the Mandiri CU has a head office consisting of four floors at a building on Jl. Mayjen Sutoyo, Tebing Tinggi, and 30 branch offices: 15 in North Sumatra and 15 in Riau and Jambi together.
Justinus said the cooperative was able to grow, mainly because of its five basic principles that should always be upheld by members and administrators alike: education, self-help, solidarity, innovation, and unity in diversity.
Each new member is obliged to attend an eight-hour basic training on the cooperative, its history and lending and borrowing procedures. The training is a requirement for members to borrow money. At a later stage, members also receive advanced training to match their interests. For example, farmer members can receive training on agriculture.
Members jointly own the cooperative’s assets, as self-help is one of the pillars of Mandiri CU. "Funds should not be loaned to non-members even, if there are idle funds. They should become a member first to be able to take out loans," said Justinus.
Solidarity is another pillar, and members in one region must know each other. The cooperative’s activities are divided into several regional areas (KWR). Each KWR has a membership of up to 500 people and is obligated to hold an annual members meeting.
Mandiri CU also continues to innovate in order to attract new members, such as by offering loans for farmers and breeders at a2 percent interest rate, which is cheaper than the normal rate of 2.5 percent.
The cooperative also offers consumer credit for purchasing vehicles or a house. "We provide loans from Rp 1 million to Rp 2 billion," said Justinus.
Meanwhile, Syamsu Madyan, public relations officer of the Sinau Andandani Ekonomi (SAE) cooperative in Pujon subdistrict, Malang regency, East Java, said the success of the SAE could be replicated in other regions.
Many cooperatives are presently conducting a comparative study of the SAE cooperative, while the SAE is learning from the success story of other cooperatives.
Members’ trust
Mikael Musliadi Didi, the human resources and development chief of the Luka Tipo Credit Union in Sanggau district, West Kalimantan, said one of the most important things in maintaining the stability of the Luka Tipo CU was the ability to cultivate trust among its members.
In order to do this, the cooperative must prove its consistency in financial management. Members must be confident that they are well served.
To minimize any irregularities in financial management, the cooperative’s board members of may not be blood relatives. This policy applies from top management to lower management at every branch office.
Meanwhile, Cooperatives and Small Medium Enterprises (SME) Minister Anak Agung Gede Ngurah Puspayoga said the government continued to encourage cooperatives to increase their role in the national economy, in order to promote equal distribution of wealth for citizens. "This will strengthen the NKRI [the unity of the Republic of Indonesia]," Puspayoga said in Jakarta.
The Cooperatives and SME Ministry’s production and marketing deputy, I Wayan Dipta, said improving members’ awareness was important to promote cooperatives. A sense of togetherness and proper management were believed to enhance the competitiveness of cooperatives and to become increasingly important to the economy.
"One of the challenges is usually in capital and human resources," Wayan said.
