In the past, we often heard about the presence of cooperatives in almost every institution. Cooperatives guarantee the circulation of money to be managed at a smaller level. In contrast to banks with complex systems, cooperatives are generally simpler and directly touch the joints of people's lives. It is not imaginary if the activities in fulfilling daily needs always intersect with cooperatives. Want to buy basic necessities go to the cooperative, want to borrow money going to the cooperative until they want the social gathering to go to the cooperative.
A cooperative is a business entity that is owned and operated by its members to fulfill common interests. This legal entity is formed on the principle of family where the aim is to prosper the members. In this case, cooperatives are formed where activities are based on the principles of the people's economic movement. According to Law No. 25/1992, the definition of a Cooperative is a business entity consisting of people or legal entities of cooperatives, by basing their activities based on the principle of cooperatives as well as the people's economic movement based on the principle of kinship.
Cooperatives with mutual cooperation are a reflection of the life of this nation. In its operational activities, all cooperatives in Indonesia use open and voluntary principles, the process of managing cooperatives in a democratic manner, the distribution of the remaining proceeds of business (SHU) must establish a sense of justice in accordance with the performance of each member, giving remuneration to members adjusted to capital the member. These values are the foundations of the cooperative. The democratic nature and openness of cooperatives is a climate that is very suitable to develop in Indonesia which is cultured in eastern society.
Challenges of Market Globalization
Today the current market globalization is increasingly becoming increasingly common. Starting from the establishment of a foreign product franchise that is scattered in the crowded cities until labor competition is an effect of this market globalization. Many have discussed the impact of the opening of world trade on the existence of cooperatives or other small business entities. One of the most worrying is the inability of the cooperative to run following the current trade flow more towards this capitalist. The big capital, he wins. Companies with strong capital and capable human resources as if to erode new businesses based on cooperative values. In contrast to the value of cooperatives that seem to carry the principle of profit and mutual success, the presence of large companies or business entities makes the principle collapse and members who move within the cooperative become eroded one by one.
In addition to the external side of the threat from the market globalization system, the challenges that must be faced by cooperatives also arise from the internal side of the cooperative itself. Based on the latest data from the publication of the Central Statistics Agency on 2017 Savings and Loans Cooperative, appointing an average borrower whose credit is stalled or has problems can be more than 10 borrowers in one cooperative. This phenomenon occurs evenly in almost all major islands in Indonesia. Even for one cooperative on the island of Bali and Nusa Tenggara alone, there are an average of 60 borrowers whose loans are stalled. This of course makes the flow of capital and the circulation of money within this cooperative will be hampered. Capital flows do not return on time and can affect members' deposits to minus. Such conditions will create social upheavals within the cooperative's body. The end of course is predictable that there will be criminalization reporting to the police station until the riots between members of the cooperative itself.
Of course the existence of cooperatives is still very much needed in Indonesia. Many people who find it difficult to obtain access to capital from banks, run to savings and loan cooperatives. Its presence seems to be an oasis in the arid economy of small businesses today. The cooperative still has hope even though its existence is now on the edge. The fact that data about the need for a cooperative presence in the community still supports this. Based on BPS data, at least the average number of members in one cooperative in Indonesia is almost more than 110. Even on the island of Bali and Nusa Tenggara, one cooperative can have up to 993 members. The borrower's pattern is still the same in almost all of Indonesia. Comparisons between borrowers and members of cooperatives almost reach half or even more. BPS data in 2016 noted that in Maluku and Papua the average borrower in one cooperative can reach 174 people even though the average member is 111 people. This data seems to inform that the presence of cooperatives is still needed even though it is being tipped as a result of the widespread global trade.
Hopefully Indonesian cooperatives will continue to survive in the future. History records the existence of Indonesian cooperatives born since 1895 which was founded by Patih Purwokerto R. Aria Wiriaatmadja to overcome poverty in that period. Until finally the first Cooperative Congress in Tasikmalaya on July 12, 1947 where that date is now the National Cooperative Day to date. The spirit of alleviating poverty and poverty certainly needs to be maintained in a cooperative forum. For almost 124 years the presence of cooperatives continued to maintain the nation's economic hope to stay alive in maintaining business rights with minimal capital that grew in the capitalist system. Keep standing firm and Happy National Cooperative Day.
Written by:
Royhan Faradis S.ST
Functional Statistics BPS Belitung Timur Regency
