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Potentials And Strategies Of Indonesian Agricultural Cooperatives In Reformation Order

penulis :
Herbert Hot Ojahan Siagian
kategori :
Tesis
fakultas :
Ekonomi
tahun :
2000

    The reformation order currently occurring in Indonesia and its affect on agricultural development are the emphasis of this study. Triggered by the economic crises that had financially deteriorated most large-type businesses and collapsed non-agricultural businesses, the reformation order therefore was on one hand to encourage small-type businesses that focus on agriculture to recharge the economic development in the country. On the other hand, the reformation order was to direct business activities to the so-called free-oriented market and to avoid monopolization previously practiced in the country. In fact, agricultural cooperatives, one of the small-type businesses and officially named village unit cooperatives, had recently been affected and extensively targeted to succeed the reformation order. Frequently these were the only business institutions existing in villages. Village unit cooperatives based their business activities or functions primarily on governmental programs such as fertilizer distribution and rice procurement. These governmental programs have functionally paralyzed their business performance. Quantitative potentials were the only remainder of village unit cooperatives in reviving their functions and reshaping their strategies in encountering the reformation order. In brief, the study related these potentials with experiences that used to be encountered by agricultural cooperatives in the US. Also, the study focused on the agricultural development in the US that had been successfully moving into the agribusiness system. The result of this study had indicated strategies potentially applicable for village unit cooperatives. One of the most appropriate strategies was vertical coordination/ integration. The study, moreover, indicated that vertical coordination/ integration was applicable partly by empowering quantitative potentials possessed by village unit cooperatives, and partly by reorienting such factors used to involve in village unit cooperatives development.

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