Grand Strategy of Cooperative Development in Indonesia

Abstract

The cooperative is one of the oldest socio-economic movement and has spread to many countries around the globe. In Indonesia, the beginning of the cooperative movement can be traced back to the 1800s. In July 1947, a congress in cooperatives was held at the national level and it was considered as a milestone of cooperative movement. The development of cooperatives, unfortunately, was not satisfied. Up to this writing, there is a lack of successful cooperative presence in the national level. This study aims to portray the development of cooperatives in Indonesia and to develop national level cooperative development strategies. This study was conducted from June 2013 until February 2014. Data was collected through several approaches, including desk study, in-depth interview and focus group discussion (FGD) involving the cooperative leaders and policy makers at both the local and national level. Collected data then was analyzed using content analysis, fishbone and mind mapping, and SWOT (strengths, weakness, opportunity, and threats) analysis, followed by architecture strategic. This study found that in macro level the development of cooperative grows as much as 3% per year; however 30% of it was not active. At the micro level, the economic performance of cooperatives was less profitable, and organizationally, was biased from the cooperative’s identity. In order to enhance the development of cooperatives, we formulated 13 strategies which were divided into two phases: the consolidation stage and expansion stage. The 13 strategies, however, will not be successful unless it is fully supported by the government, both at the local and national level

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