Strengthening Cooperative Structure

KOPERASI SIMPAN PINJAM MAJU WIJAYA

Suasana bazar untuk memperkenalkan produk dari para anggota Koperasi Simpan Pinjam Maju Wijaya di Jakarta, akhir pekan lalu.

Cooperatives have not yet become a pillar of the Indonesian economy, as their role and contribution to the national economy remain insignificant.

Cooperatives began to appear in Indonesia in the 19th century and July 12, 1947, was declared Indonesian Cooperative Day during the first national congress. However, the cooperatives have not yet made a significant contribution to the economy and in helping the people\'s economy, in line with the goals set by Mohammad Hatta, the father of Indonesian cooperatives.

Currently, cooperatives contribute only 5.2 percent to the national economy, with a total of about 123,000 cooperatives and 25 million members. This number is relatively small compared to the contribution of micro, small and medium enterprises (MSMEs), which is more than 60 percent.

The existence of cooperatives is quite ideal as they have the potential to be one of the pillars of the Indonesian economy. As a form of business that brings together small groups of people into a common economic power based on the principles of kinship and mutual assistance, cooperative activities are the shared responsibility of their members in promoting their welfare.

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With this principle, cooperatives teach their members to have self-esteem and self-confidence because each member has the same voice and responsibility in determining how the cooperative runs.

Basically, the development of cooperatives must have at least these three goals: to gather people into cooperatives, determine activities that benefit members and have management and supervisory boards.

KOMPAS/IRMA TAMBUNAN

Savings and loan service activities at the Karya Mukti Village Unit Cooperative, on Friday (5/7/2019). The cooperative, which is located in Pelepat District, Bungo Regency, Jambi, has grown rapidly since the last 5 years. By upholding the principles of openness and togetherness, the cooperative has developed 18 business units with a turnover of more than Rp 100 billion per year.

Of these three things, our cooperatives are still lacking in management, including supervision through member meetings. A number of cooperatives have succeeded in developing businesses with a turnover of hundreds of billions of rupiah. However, the number of successful cooperatives remains quite small. The majority still don’t have the capacity to be able to grow sustainably.

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If managed properly, cooperatives can grow into economic giants. Credit Agricole Group in France, as the one of the largest cooperatives in the world, booked total revenues of US$103 billion. Many of the world\'s large cooperatives are located in countries with capitalist economic systems and are engaged in agriculture, animal husbandry, forestry, retail and savings and loans.

The cooperatives should work in an integrated system from upstream to downstream and should be able to join forces in strengthening their capital and in their push for digitalization.

The Cooperatives and SME Ministry has developed a cooperative transformation strategy. According to the plan, the modern cooperative will be engaged in, among other things, fields that have high economic leverage, especially agriculture, fisheries, plantations and tourism. The cooperatives should work in an integrated system from upstream to downstream and should be able to join forces in strengthening their capital and in their push for digitalization.

KOMPAS/ANGGER PUTRANTO

Minister of Cooperatives and Small and Medium Enterprises Teten Masduki (third from left) has a dialogue with fishermen at Muncar Harbor, Banyuwangi, on Friday (2/10/2020).

The COVID-19 pandemic must be used as an opportunity to accelerate the development of cooperatives. Togetherness and mutual help, which have become the new norm, is a fertile place for cooperatives to develop. Therefore, we want the transformation designed by the Cooperatives and SME Ministry to be realized so that it is able to increase the role of cooperatives in the country\'s economy, improve the welfare of its members and balance the national economic players in achieving a just and prosperous society.

(This article was translated by Hendarsyah Tarmizi).