THE MINISTRY of Cooperatives and SMEs (Kemenkop UKM) reported a decline in the number of cooperatives in the two periods of the current government. However, cooperative capital is currently increasing.
Deputy for Cooperatives at the Ministry of Cooperatives and SMEs, Ahmad Zabadi, revealed that the number of cooperatives in 2023 will reach 130,119 units, down from 209,488 units in 2014.
“Even though it has decreased in terms of numbers, cooperative capital has increased, from IDR 200.66 trillion to IDR 254.17 trillion,” he said at the Kemenkop UKM Office, Thursday (10/10).
Also read: 82,000 Cooperatives Disbanded in 2014-2019
The decrease in the number, continued Ahmad, is because the Ministry of Cooperatives and SMEs is focusing on improving the quality of cooperatives, especially real sector cooperatives as a sector that has a high growth coefficient and large added value potential.
“Cooperatives that are considered no longer active are being processed for institutional deletion and dissolution,” he stressed.
On the other hand, Ahmad said that the modern cooperative program which was implemented from 2020-2023 had involved intervention in 400 cooperatives consisting of 220 food cooperatives and 180 non-food cooperatives with a target of 500 cooperatives by 2024.
“This program also supports the Farmer Corporatization Program which provides an upstream and downstream ecosystem by creating added economic value for farmer members of cooperatives. Farmers become providers of raw materials and cooperatives become consolidators and aggregators of agricultural products by looking for markets,” he said. (E-2)
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The State of Cooperatives in Indonesia: A Declining Trend
As a seasoned blog news writer, I recently stumbled upon a pressing issue that has sparked my interest – the current state of cooperatives in Indonesia. A news article I came across highlighted the worrying trend of a decreasing number of cooperatives in the country. In this analysis, I will delve into the intricacies of the cooperative movement in Indonesia and explore the reasons behind this decline.
Firstly, let’s set the stage. Did you know that the cooperative movement in Indonesia is a staggering 123 years old? The first Cooperative Congress was held on July 12, 1947, marking the beginning of a long journey for these member-owned businesses [[2]]. As of 2020, there were 127,124 active cooperatives in Indonesia, with a business volume of Rp174 trillion [[1]]. These numbers, although impressive, only tell part of the story.
The harsh reality is that many cooperatives in Indonesia are inactive. A study by Trisniarti in 2022 revealed that 40% of cooperatives in Indonesia are not active for various reasons [[3]]. This raises several concerns, including the potential for resource wastage, lack of economic contribution, and an overall decrease in the vibrancy of the cooperative sector.
The Ministry of Cooperatives and SMEs has acknowledged this issue and is taking steps to modernize and revitalize the cooperative sector [[1]]. This includes initiatives to improve adaptiveness and competitiveness, enabling cooperatives to stay relevant in a rapidly changing economic landscape.
while the cooperative movement in Indonesia has a rich history, the current state of affairs is a cause for concern. The declining number of active cooperatives and the large percentage of inactive ones pose significant challenges for the sector. However, with the government’s efforts to modernize and support cooperatives, there is still hope for reviving and strengthening this vital part of Indonesia’s economy.
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