Cooperative Sustainability Challenges in the Rural Credit Landscape

Abstract

Agricultural cooperatives play a significant role in improving economic and social resilience of rural communities. Sadly, with the advent of non-bank financial institutions such as fintech, their competitiveness has been reduced, particularly in accessing funds and technology adoption. The purpose of this research is to explore the internal and external factors influencing cooperative sustainability from a case study of the Agricultural Cooperative in Cikidang Village, Lembang. The research design was qualitative based on face-to-face interviews. The results show that low financial literacy and weak digital infrastructure are the primary impediments. But the cooperative is still demonstrating adaptive resilience through institutional adaptation, the use of technology-facilitated innovations like automated irrigation systems and greenhouses, and experiential hands-on learning among the members. The study aims to emphasize the imperative for developing cooperative competitiveness through the integration of institutional, social, and digital strategies within the context of green economy principles. The recommendations for its improvement are to develop in-house capacity via financial management and leadership training, cross-sectoral coordination with government, private sector, and academic institutions to enhance access to finance and technology, and enhancing members' digital literacy via in-practice training programs and ongoing mentoring