Sharp Observer Criticism: Cooperatives in Indonesia Still Far from National Economic Pillar

Despite exceeding 224,000 units, the role of cooperatives in national GDP is still considered minimal. The dominance of the consumer savings and loans sector remains a major challenge for cooperative reform.

Oleh Admin Portal 09 Jul 2026 2 menit baca 💬 0 komentar

Sumber: foto.kontan.co.id

Ministry of Cooperatives data up to the first semester of 2026 recorded a surge in the number of cooperative units in Indonesia, reaching 224,256 entities. Although this quantitative growth appears massive, its effectiveness in driving the national economy still draws criticism from various quarters, particularly regarding operational quality and impact on Gross Domestic Product (GDP).

Chairman of the Association of Strategic Socio-Economic Cadres (AKSES), Suroto, highlighted the reality that the contribution of cooperatives to GDP remains stuck around 1%. Over the past decade, this figure has been considered stagnant and far from the ideal of cooperatives as the backbone of the Indonesian economy as mandated by the constitution.

One of the main obstacles identified is the heavy reliance on the savings and loan sector. To date, around 80% of cooperative business activities revolve around this sector. However, Suroto emphasized that this dominance has not provided significant economic added value for members, as most of the financing is still absorbed for household consumption needs rather than productive sectors.

Responding to the proliferation of cooperatives that only serve as a front for loan sharking practices or are mere 'shell cooperatives', Suroto urged the Ministry of Cooperatives to conduct a thorough clean-up. He urged the government to have the courage to dissolve inactive cooperatives or those deviating from basic member service principles, as well as to encourage consolidation through mergers for healthy savings and loan cooperatives to strengthen economies of scale.

Furthermore, he highlighted the regulatory disparity between cooperatives and banking institutions. According to him, the government needs to provide fairer treatment regarding incentives, guarantee facilities, and subsidy access, which have so far been viewed as favoring the banking industry. Without equal ecosystem support, the competitiveness of cooperatives will continue to be constrained.

Regarding the Red and White Village/Sub-district Cooperative (KDKMP) initiative, Suroto sees it as great potential to boost the grassroots economy. However, he stressed that physical infrastructure is not everything. The success of this program will depend entirely on how quickly these cooperatives can operate, establish a clear business ecosystem, and become distribution channels that provide tangible benefits to local villagers and farmers.