Members of the North Bandung Cattle Farmers Cooperative deposit milk from their cattle at the Bukanegara pick-up post in Lembang, West Bandung regency, West Java, Sunday (9/7). The cooperative is an organization that protects and advocates for cattle farmers and their businesses.
JAKARTA, KOMPAS — Several issues, such as low understanding of cooperatives, minimal hard work, poor management and inhibitive government regulations, make it difficult for cooperatives to develop. If all these issues were settled, cooperatives managers are convinced the role of the communal economic activity could be greater.
Several cooperatives figures met last week and revealed the issues on Monday (10/7). Meanwhile, a survey by Kompas research and development shows 52.7 percent of respondents said they had never been a member of a cooperative while 23.6 percent said they were once a cooperative member, but quit.
Kristianus Indra, the marketing and business development chief of Lantang Tipo Credit Union (CU) in Sanggau, West Kalimantan, said his cooperative did not grow large overnight. One of the initial problems was the public and members’ opinion on cooperatives.
“One most important thing is to change the mindset of members about the importance of saving, borrowing for productive activities and the importance of asset management. Changing the mindset starts with providing training for CU members from the beginning of their membership,” Indra said.
Basic training
One of the requirements for becoming a CU member is to attend basic training, which covers the history of credit unions, its management, its vision and mission, managing household finances and social analysis.
Successfully changing the mindset needs to be followed by financial consistency, mainly in line with the credit union’s financial prudence standard. The minimum liquidity is 10-20 percent of total assets.
“Therefore, anytime a member applies for a loan and is approved, the fund will be disbursed as promised to the applicant. The same is true for a member who withdraws money. The fund will be available. The member’s trust will grow so that Lantang Tipo CU grows larger,” Indra said.
Justinus P Tamba, chairman of Mandiri CU in Tebing Tinggi, North Sumatra, said many officials at regional cooperative offices did not have an understanding of cooperatives. This situation meant that the government’s role in dealing with cooperative issues was less appropriate. Justinus said that over the past 20 years, the government’s attention on cooperatives had decreased. In fact, the idea that the social economy was a pillar of the state was only a slogan. Article 33 of the 1945 Constitution has not been implemented well.
Like other cooperatives, the Sinau Andandani Ekonomi (SAE) dairy farmers cooperative in Pujon district, Malang, East Java, also experienced ups and downs. One of the problems was its members’ perception on cooperatives. In the past, complaints from members did not get adequate response.
SAE Pujon spokesperson Syamsu Madyan explained that the SAE cooperative was able to excel because it could change. It did not only respond to complaints from members, but also paid attention to members’ needs, from the health of cattle to breeding and other issues. Members were not charged any fees, so they were happy.
Cooperatives and Small and Medium Enterprises Minister Anak Agung Gede Ngurah Puspayoga said several steps were being taken as part of its complete reform of cooperatives. Puspayoga said his ministry was continuing with efforts to rehabilitate, reorient and develop cooperatives. “The quality of the cooperative should be prioritized, rather than the quantity. Unhealthy cooperatives will be guided to become healthy. If they are unwilling, they will be dissolved,” he said.
From 2014, the government has dissolved 43,000 cooperatives through a ministerial decision.
