Experiences From Asias Rural Co-Operatives Workshop report 9: Annexure II: Abstracts of papers: 6. Evolution of rural co-operative in Indonesia

Experiences From Asias Rural Co-Operatives Workshop report 9

Annexure II

Abstracts of papers

		1. Rural Co-operatives in Asia: Issues in development
		2. Viable Co-operative models in Asia - Strategies for future development
		3. Experiences from Asias rural co-operatives
		4. Agricultural co-operatives in Korea
		6. Evolution of rural co-operative in Indonesia
		7. The agriculture co-operatives of Malaysia
		8. Rural co-operatives in Sri Lanka - Experiences, problems and prospects
		9. Development of rural co-operatives in Bangladesh
		10. Effectiveness of village-level primary agricultural co-operatives in selected Asian countries
		11. Prerequisites for co-operative success or criteria for genuine co-operative societies
		12. Integrated co-operatives a case of sugar co-operatives in Maharashtra
		13. The role of co-operatives in the process of structural adjustment: New challenges and ILOs approach
		14. Rural co-operatives in Nepal
		15. Capital, participation and co-operative performance: The importance of member equity stake
		16. Milk co-operatives in India

6. Evolution of rural co-operative in Indonesia

by Noer Soetrisno

The history of agricultural co-operative development in Indonesia originated from the pressure on farmers institution to support agricultural development which followed a top-down approach. A systematic approach on rural-agricultural co-operatives promotion started in the early seventies, as part of an agricultural development programme aimed at boosting food production.

The evolution of agricultural co-operatives after the adoption of BUUD/KUD concept went through the expansion of KUD from rice-based agricultural co-operatives (1973-78) to agricultural based - village co-operative (1978-83) and finally into rural based-village co-operatives (1983 to this day). In the fifth five year, a programme intended to prepare KUD into full-fledged self-reliant a co-operatives was introduced. The self-reliant KUD programme is still going on. This a fair raises the question on the continuity and sustainability of KUD development programme. The experiences of commodity-based agricultural co-operatives however show that these have a better competitive advantages.

Experience has also shown the over-protected KUDs as the sole rural economic organization in a village, have been found to be not suitable to the needs of a diversified economy of the rural sector, which requires variation in the type of co-operative societies.

The enactment of new co-operative law No. 25/1992 has opened up opportunities for making adjustments. The possible future direction of KUD development will most likely be to go back to agricultural commodity based co-operatives, while other types of co-operative will also grow in the rural areas, consequent upon the increasing demand to establish new types of co-operatives. Successful urban credit and consumer co-operatives are also likely to grow and expand in the future.

There is a need to study the transformation process of existing this KUDs into organizations more suitable for the member’s needs, and in accordance with structural change of the rural economy.