Indonesia's Cooperative Imbalance: Java's Dominance

Data from the Ministry of Cooperatives and Small and Medium Enterprises (Kemenkop UKM) shows that Java Island has the highest number of cooperatives in Indonesia. This figure is significantly higher compared to other regions.

Data compiled in Satu Data Kemenkop shows that West Java ranks first with 16,000 cooperatives. East Java follows with 14,000 cooperatives.

Central Java is third with 12,000 cooperatives. Below the Javanese trio are Riau, with 8,300 cooperatives, and Bali with 8,000 cooperatives.

Other regions, such as North Kalimantan, Southeast Sulawesi, West Sulawesi, North Maluku, West Papua, and Papua, have zero registered cooperatives. Kemenkop has not yet provided clarification regarding this absence, but it is suspected that cooperative activity in these areas is minimal.

This was stated by the Chairman of the Association of Socio-Economic Strategic Cadres (Akses), Suroto. He explained that compared to Java and Sumatra, the growth of cooperatives in these regions is already excessive.

He argues that Java and Sumatra are dominated by "nameplate cooperatives" and sham cooperatives. Nameplate cooperatives are those that primarily aim to obtain grants or are essentially loan sharks operating under the guise of cooperatives.

"Only around 35,000 cooperatives are registered and have a Cooperative Identification Number (NIK)," Suroto told Databoks on Monday (February 6, 2023).

Suroto criticized the Minister of Cooperatives and SMEs, Teten Masduki, for neglecting his main duty to create a conducive environment for cooperative development.

The Cooperative Law should also contain three main principles or articles. First, recognizing the practices, values, and principles of cooperatives. Second, distinguishing cooperatives from other types of businesses or organizations. Third, protecting these values and principles.

"One example is prohibiting the use of the name 'cooperative' by anyone conducting business practices that do not adhere to cooperative principles," said Suroto.

This principle is crucial to curb fraudulent cooperative practices that exploit the public. Suroto even compared Indonesian cooperatives unfavorably to those in countries like Canada, Germany, and the United States, which he considers stronger.

"For example, the values and principles of democracy and autonomy, independence, and member participation. The roles of both the cooperative movement and the government are clearly defined in these areas," said Suroto.

The following is the number of cooperatives in Indonesia (2022):

* West Java: 16,151 cooperatives
* East Java: 14,777 cooperatives
* Central Java: 12,829 cooperatives
* Riau: 8,362 cooperatives
* Bali: 8,018 cooperatives
* South Sumatra: 5,613 cooperatives
* Lampung: 4,582 cooperatives
* West Nusa Tenggara: 4,124 cooperatives
* Riau Islands: 3,666 cooperatives
* North Sumatra: 2,864 cooperatives
* Yogyakarta Special Region: 2,405 cooperatives
* Banten: 2,291 cooperatives
* Jakarta: 2,176 cooperatives
* West Sumatra: 1,833 cooperatives
* Aceh: 1,604 cooperatives
* Gorontalo: 1,604 cooperatives
* Jambi: 1,031 cooperatives
* Bengkulu: 916 cooperatives
* South Kalimantan: 916 cooperatives
* East Kalimantan: 802 cooperatives
* South Sulawesi: 687 cooperatives
* Central Kalimantan: 458 cooperatives
* North Sulawesi: 344 cooperatives
* Bangka Belitung Islands: 229 cooperatives
* West Kalimantan: 229 cooperatives
* East Nusa Tenggara: 126 cooperatives
* Central Sulawesi: 115 cooperatives
* Maluku: 115 cooperatives
* North Kalimantan: 0 cooperatives
* Southeast Sulawesi: 0 cooperatives
* West Sulawesi: 0 cooperatives
* North Maluku: 0 cooperatives
* West Papua: 0 cooperatives
* Papua: 0 cooperatives

(Disclaimer: Not all data has been submitted, and data evaluation has been communicated to Kemenkop UKM)