Cooperatives and economic growth in Indonesia

Abstract

This research was conducted through quantitative descriptive analysis by distributing questionnaires to cooperatives in several big cities in Indonesia. The analytical method used was probit analysis. The results of this study show that the development of cooperatives in Indonesia is still influenced by human capital, money capital, social capital, knowledge capital and the economic infrastructure. Indonesia's economic growth in the future will be slow but surely influenced by the existence of cooperatives which are still less competitive than conglomeration companies that have grown rapidly. This is because human, money and knowledge capital are the foundation to manage the cooperatives which should be based on noble intentions, due to the fact that the cooperative is the lifeblood of the Indonesian economy.