Tendenzen der indonesischen Genossenschaftspolitik
Creators: name: Koch, Eckart
Publisher: name: Internationales Asienforum
Year: 2017

description: In keeping with the "Law on the basic regulations for co-operatives" in Indonesia which was issued in 1967, co-operatives are to be developed as one of the dominant units of the national economy of Indonesia. Their main functions are to be the raising of the standard of living of the people and the democratization of the national economy while the government is to render guidance, inspection, protection and facilities. Besides the general patterns for co-operative development stipulated in the law, special patterns for the development of small village unit co-operatives(KUD) have been created since 1971. However, until now KUDs have mainly been involved in carrying out government development programs such as distribution of farm inputs and marketing of farm produce. With the implementation of the third Five-Year Plan, Repelita III 1979-1984, the concept was changed and the KUDs were transformed into multi-purpose co-operatives while their working area was enlarged. In keeping with the political decisions expressed in the "Broad Outlines on State Policy", GBHN, the important Presidential Decree No. 2/1978 and the third Five-Year-Plan itself, the role which co-operatives shared in national development increased at the beginning of 1978. This development, however, was only achieved by ever increasing support from the government side providing in the form of facilities and financial aids. Therefore, KUDs in Indonesia could no longer be looked upon as self-help organizations; they are state-initiated and state-controlled development agencies and, as such, are strategic instruments for the implementation of government programs. Aims like "democratization of national economy" and "encouraging the unity of the people in order to organize the management of the economy of the people" as stipulated in the co-operative law could not be attained in this way. It is difficult to finally judge the Indonesian form of co-operative policy. On the one hand, some approaches have to be regarded as useful and steps in the right direction, e.g. : the first four five-year plans emphasized the development of the rural areas aiming at self-sufficiency in basic commodities ; it seemed necessary to create countervailing powers on a rural basis to reduce the nearly absolute power of the village traders and money lenders; the involvement of the government in these activities was understandable, considering the famine disasters in the sixties and the political development resulting out of this situation. On the other hand, the mingling of a classical 'top/down' approach with self help ideas and strategies has to be criticized. This approach in no way seems adequate enough to stimulate co-operative self-help mentality but rather increases the dependence on external sources. The government predicts the beginning of a stage of de-officialisation of the KUD within the period of the fourth Five-Year-Plan. Under the prevailing circumstances it is doubtful whether the KUDs will fulfill the necessary preconditions; in fact, there is enough reason to fear that a decrease in governmental support will lead to a collapse of a big number of KUDs as co-operatives.
description: Internationales Asienforum, Bd. 14 Nr. 2-3 (1983): Internationales Asienforum