Strategy and Policy for Strengthening the Agricultural Cooperative Business in East Java, Indonesia

Abstract

The purpose of the study is to analyze business performance, financial resources, and strategies for developing agricultural cooperatives in East Java. The research approach used was a qualitative and quantitative descriptive approach. The research locations were in Malang regencies, Lumajang, Bojonegoro, Tulungagung, Madiun, Situbondo, Banyuwangi, and Sumenep. Secondary and primary data, including cooperative performance, SWOT, and financial data, were carried out to obtain a cooperative description. The analysis methods used were descriptive analysis, financial ratios, SWOT and FFA. The results showed that agricultural cooperatives showed a strong institutional position in supporting food sovereignty. The number of active cooperatives reached 27461 units with 7.62 million members. Cooperatives in healthy performance were found in Malang, Situbondo, Tulungagung and Madiun Regencies. The cooperative development should be emphasized on implementing functions of member annual meeting, developing innovation, making economic partnerships, strengthening capital formation, applying positive values of cooperatives to all members, facilitating members into the agribusiness chain, and improving the cluster of the production system. The strategies applied for East Java Cooperativesare prioritized on human resources, institutions and empowerment, facilities and infrastructure, and finance.JEL Classification: Q12, Q13, R58

Stakeholder collaboration to support accountability in village fund management and rural development

“…According to Hanida et al (2017), a good relationship between stakeholders provides functions as partners and colleagues of local government work units at the regency level, including the village government. Stakeholder collaboration in cooperative development can be lesson learned (Soetriono et al, 2019), with implementing functions of member annual meeting, developing innovation, making economic partnerships, strengthening capital formation, facilitating members into the agribusiness chain, and improving the cluster of the production system.…”

Tantangan Dan Peluang Pengembangan Pisang Mas Kirana

“…Akan tetapi, adanya unit usaha ekonomi ini tidak menjadikan koperasi sebagai suatu perusahaan pada umumnya sebagaimana perusahaan swasta atau dengan kata lain dikembangkannya unit usaha pada suatu koperasi bukan menjadikan lembaga koperasi sebagai lembaga bisnis semata. Menurut (Soetriono et al, 2019), koperasi berfokus pada penerapan RAT, mengembangkan inovasi, menjalin kemitraan ekonomi, memperkuat pembentukan modal, menerapkan positif nilai-nilai koperasi kepada seluruh anggota, menfasilitasi anggota ke dalam rantai bisnis dan meningktakan kluster sistem produksi. Koperasi bukan suatu perusahaan, namun koperasi memiliki perusahaan cooperative Ecompany.…”

The Readiness of Village Unit Cooperative in Facing Economic Competition and Globalization

“…Lastly, KUD does not have a visionary business plan to make it a modern business because of the limited capacity of the management and is afraid to bear the risk of loss. These three things are related to the management capacity, the suspicion of certain parties to the successful KUD, and the issue of respect for management who are no longer active (Soetriono et al, 2019).…”