From Fighting Loan Sharks to National Movement: The Long History of Indonesian Cooperatives

July is a significant month for the cooperative movement in Indonesia. Every 12 July is commemorated as National Cooperative Day, referring to the first Indonesian Cooperative Movement Congress held in Tasikmalaya on 12 July 1947. The congress became a historical milestone as it succeeded in uniting various cooperative movements after Indonesia’s independence while also designating 12 July as Cooperative Day. At the 79th National Cooperative Day commemoration at the Indonesia Arena in Jakarta, President Prabowo Subianto once again highlighted the role of cooperatives as a pillar of the people’s economy. According to him, the strength of cooperatives is born from the spirit of mutual cooperation. “Cooperatives are a tool for the weak. But, like a broomstick, one stick is weak, but when combined, that is strength, brothers and sisters. Do not worry, the Indonesian cooperative movement will rise to become an economic force for Indonesia! An economic force that will not take money out of Indonesia,” said President Prabowo. The forerunner of cooperatives in Indonesia began on 16 December 1886 when R.A. Wiraatmadja, the Patih of Purwokerto, established the Hulp en Spaarbank, a financial institution based on the Raiffeisen credit cooperative model. The aim was to help the community, especially the priyayi class, avoid the clutches of loan sharks. The concept later developed with the support of the Dutch colonial government. Entering the early 20th century, cooperatives began to become part of the people’s economic movement. Boedi Oetomo encouraged the formation of household cooperatives in 1908, followed by Syarikat Dagang Islam which developed cooperatives among indigenous traders in 1913. In 1927, the Studie Club or Persatuan Bangsa Indonesia also utilised cooperatives as a means of economic education while fostering a spirit of nationalism. After Indonesia’s independence, various cooperative organisations were united through the first Indonesian Cooperative Movement Congress in Tasikmalaya on 12 July 1947, attended by around 500 delegates from various regions. The congress produced several important decisions, such as the formation of the Central Organisation of Indonesian People’s Cooperatives (SOKRI), the affirmation of cooperatives based on mutual cooperation, and the designation of 12 July as National Cooperative Day. During this year’s National Cooperative Day commemoration, the General Chair of the Indonesian Cooperative Council (DEKOPIN), Bambang Haryadi, assessed that attention towards cooperatives is increasing again. “Only under the President’s administration has the cooperative movement received attention and become a priority programme for strengthening the people’s economy,” said Bambang.