Original Article International Journal of Research - GRANTHAALAYAH

ISSN (Online): 2350-0530 August 2024 12(8), 122–130

ISSN (Print): 2394-3629

BUILDING A PEOPLE'S ECONOMIC ECOSYSTEM THROUGH THE SYNERGY OF

COOPERATIVES AND MSMES FOR GOLDEN INDONESIA 2045

Ahmad Subagyo 1 , Roberto Akyuwen 2 , Martino Wibowo 3 , Diah Nofitasari 4 , Muhammad Arif Kurniawan 5

1 Department of Magister Management, Stie GICI Depok, Indonesia

2 FEB-Universitas Panca Sakti Tegal, Indonesia
3 Program Pascasarjana - Universitas Terbuka, Indonesia
4 STIE GICI Depok, Indonesia
5 FEBI-UIN Abdurahman Wahid Pekalongan, Indonesia

ABSTRACT
This article analyzes strategies for building a people's economic ecosystem through
optimizing synergy between cooperatives and MSMEs in order to realize the vision of
Golden Indonesia 2045. Using a literature analysis and secondary data approach, this
Received 15 July 2024
study explores the concept of the people's economic ecosystem, the role of cooperatives,
Accepted 20 August 2024 the challenges and opportunities of MSMEs, and the synergy strategy between the two
Published 17 September 2024 sectors. The implementation of the grand theory of growth and equity was also discussed
as a policy foundation. The results of the analysis show that strengthening the digital
Corresponding Author
ecosystem, optimizing collaboration between stakeholders, and developing a data-based
Ahmad Subagyo, monitoring system are the keys to building effective synergy between cooperatives and
bagyo1972@gmail.com MSMEs. This study concludes that with the right strategy, the synergy of cooperatives and
DOI MSMEs can be the main driver in creating inclusive and sustainable economic growth
10.29121/granthaalayah.v12.i8.2024 towards Golden Indonesia 2045. Policy recommendations include strengthening digital
.5773 infrastructure, improving cross-sector coordination, and developing a comprehensive
Funding: This research received no evaluation system to support evidence-based decision-making in the development of the
specific grant from any funding agency in cooperative and MSME sectors
the public, commercial, or not-for-profit
sectors. Keywords: Synergy, Cooperatives, MSMES, People's Economy
Copyright: © 2024 The Author(s).
This work is licensed under a Creative
Commons Attribution 4.0
International License.
With the license CC-BY, authors retain
the copyright, allowing anyone to
download, reuse, re-print, modify,
distribute, and/or copy their
contribution. The work must be
properly attributed to its author.

1. INTRODUCTION
Indonesia has great potential to become one of the world's economic powers
by 2045. World Bank projections show that Indonesia has the opportunity to
become a high-income country with a GDP per capita of US$23,199 in 2045. To
realize the vision of Golden Indonesia 2045, inclusive and sustainable economic
How to cite this article (APA): Subagyo, A., Akyuwen, R., Wibowo, M., Nofitasari, D., and Kurniawan, M.A. (2024). Building a 122
People's Economic Ecosystem Through the Synergy of Cooperatives and Msmes for Golden Indonesia 2045. International Journal of
Research - GRANTHAALAYAH, 12(8), 122–130. doi: 10.29121/granthaalayah.v12.i8.2024.5773
 Building a People's Economic Ecosystem Through the Synergy of Cooperatives and Msmes for Golden Indonesia 2045

development is needed by involving all levels of society. Cooperatives and Micro,

Small, and Medium Enterprises (MSMEs) have a strategic role as the backbone of
the national economy which is able to absorb 97% of the workforce and contribute
61% to Indonesia's GDP.
Despite having great potential, cooperatives and MSMEs still face various
challenges in their development. Access to financing, technology, and markets is still
the main obstacle for MSME actors in Indonesia. Data from the Ministry of
Cooperatives and SMEs shows that only 30% of MSMEs have access to formal
financial institutions. In addition, the adoption rate of digital technology among
MSMEs is still relatively low, with only 13% of MSMEs having utilized e-commerce
platforms. This condition hampers the competitiveness and productivity of MSMEs
in facing global competition.
Synergy between cooperatives and MSMEs can be a strategic solution in
overcoming these challenges. Cooperatives, with the principles of mutual
cooperation and togetherness, can act as an intermediary institution that facilitates
access to financing, technology, and markets for MSMEs. Studies show that
cooperatives that synergize with MSMEs are able to increase the income of their
members by up to 30% and expand the marketing network of MSME products. In
addition, this collaboration can also encourage innovation and knowledge transfer
among business actors, thereby increasing the competitiveness of MSMEs in the
global market.
To optimize the synergy of cooperatives and MSMEs, a conducive people's
economic ecosystem is needed. This includes supportive policies, adequate digital
infrastructure, and the development of quality human resources. The government
has set a target for digital cooperative growth of 500% by 2024. This initiative is
expected to accelerate the digital transformation of cooperatives and MSMEs, so that
they can contribute more in realizing the vision of Golden Indonesia 2045. By
building a strong people's economic ecosystem through optimizing the synergy
between cooperatives and MSMEs, Indonesia can create inclusive, sustainable, and
globally competitive economic growth.

1.2. PURPOSE OF WRITING

1) Analyze strategies to build a people's economic ecosystem that focuses on
optimizing synergy between cooperatives and MSMEs.
2) Identifying opportunities and challenges in optimizing the role of
cooperatives and MSMEs as the main driver of the people's economy
towards the vision of Golden Indonesia 2045.
3) Formulate policy recommendations to strengthen collaboration between
cooperatives and MSMEs in order to create a resilient and sustainable
people's economic ecosystem

1.3. SCOPE
This paper will discuss the concept of a people's economic ecosystem as the
foundation of Indonesia's economic development towards the vision of Golden
Indonesia 2045. The people's economy ecosystem will be defined as a system that
involves various stakeholders, including the government, the private sector, and the
community, in supporting the development of micro, small, and medium enterprises
(MSMEs) and cooperatives. The discussion will include the characteristics of the
people's economy, which focuses on people's economic actors in the form of
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 Ahmad Subagyo, Roberto Akyuwen, Martino Wibowo, Diah Nofitasari, and Muhammad Arif Kurniawan

cooperatives and MSMEs, as well as their role in reducing social inequality or the
Gini ratio.
Furthermore, the paper will explore the crucial role of cooperatives in the
people's economy. Cooperatives will be discussed as an important instrument in
empowering the community and building a mutual cooperation-based economy.
The role of cooperatives in providing access to financing, marketing, and capacity
building for their members will be analyzed. The paper will also discuss the
challenges and opportunities faced by MSMEs in the context of Indonesia's economy.
This includes issues such as access to financing, technology adoption, human
resource development, and competitiveness in global markets.
The main focus of the paper will be directed to the synergy strategy between
cooperatives and MSMEs to optimize their contribution to the national economy.
This strategy will include the formation of a mutually supportive business
ecosystem, where cooperatives can act as facilitators of MSME growth. Paper will
explore various innovative initiatives, such as the development of digital platforms
to bring MSMEs together with a wider market, as well as business mentoring
programs that involve cooperatives as strategic partners. The implementation of the
grand theory of the popular economy will be discussed as a problem-solving tool,
focusing on how this theory can be applied to create an inclusive and sustainable
economic development model. The paper will analyze how the principles of the
people's economy can be integrated into government policies and programs to
encourage the growth of MSMEs and cooperatives, as well as improve the welfare of
the community as a whole.

2. DISCUSSION AND ANALYSIS

2.1. THE CONCEPT OF THE PEOPLE'S ECONOMIC ECOSYSTEM
The concept of a populist economic ecosystem is a holistic approach in building
an economy centered on the empowerment of the wider community. According to
Marzuki in Dzikri Abadi (2017), the populist economy is an economic system based
on the economic strength of the people, where economic activities are carried out
independently in managing the potential resources owned and controlled. This
concept emphasizes the combination of production units with production factors
that produce goods or services, with the impact of profits directly felt by the people
involved.
The people's economy ecosystem involves various stakeholders, including the
government, the private sector, and the community, in supporting the development
of micro, small, and medium enterprises (MSMEs) and cooperatives. This system
aims to reduce social inequality or Gini ratio by empowering people's economic
actors. The main characteristic of the people's economy is its focus on economic
activities carried out by the people with the independent management of various
economic resources.
In building a populist economic ecosystem, there are several important aspects
that need to be considered. Zulkarnain in Musfiq Arifqi (2020) emphasized the
importance of considering the background of community expertise and regional
characteristics in applying this concept. In addition, the people's economy must
include all economic activities that are in accordance with the expertise of the
majority of the community and utilize regional characteristics as the value of
regional potential.
The implementation and practice of the people's economic ecosystem can be
seen from various initiatives carried out by the government and the private sector.
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 Building a People's Economic Ecosystem Through the Synergy of Cooperatives and Msmes for Golden Indonesia 2045

For example, PT Bank Rakyat Indonesia (Persero) Tbk has implemented the go
smaller, go shorter, and go faster strategies to empower MSMEs through funding
and business assistance. This strategy aims to create a new source of growth by
empowering MSMEs and strengthening the economic resilience of the community.
In the digital era, the people's economic ecosystem also needs to adapt to
technological developments. Data from the Ministry of Cooperatives and SMEs
shows that as many as 3.79 million MSMEs have used online platforms in marketing
their products. To strengthen this ecosystem, regular training and education are
needed, especially for the 15-25 year age group, as well as more favorable funding
and support policies for MSMEs. Thus, the people's economic ecosystem can develop
to be more inclusive and adaptive to changing times.

2.2. THE ROLE OF COOPERATIVES IN THE PEOPLE'S ECONOMY

Cooperatives have an important role in realizing the people's economy in
Indonesia. According to Mubyarto. (2002) in the context of the populist economy or
economic democracy, production and consumption activities are carried out by and
for the community, with management under the leadership and supervision of the
community members themselves. This principle of economic democracy can be
implemented through a family-based cooperative forum. Cooperatives are
considered the only form of company that is in accordance with the populist
economy because the principles of the populist economy are contained in it.
The role of cooperatives in the people's economy can be seen from their
function in meeting the common needs of their members. Yuvanda et al. (2021)
explained that cooperatives were established on the basis of common needs among
their members, which were then sought to fulfill them through the formation of a
joint company. With the existence of a company that is jointly owned, it is hoped that
the needs of members can be met in a better way than if it is done individually. This
shows that cooperatives play a role in uniting the economic power of their members
to achieve a greater common goal.
Cooperatives also play a role in improving people's welfare and reducing
economic inequality. According to Puspayoga Kominfo. (2016) cooperatives have
strategic potential in increasing economic growth, labor absorption, and income
equity. Thus, cooperatives can contribute to reducing economic inequality in the
community. This is in line with the principle of the people's economy which aims to
realize the prosperity of the people equally.
However, the role of cooperatives in realizing a people's economy still faces
challenges. Research conducted in Kabanjahe District, Karo Regency, shows that
cooperatives have not fully reflected their contribution to the development of the
people's economy that can be felt by the middle economic community Napitupulu
(2023). There is still a lack of trust from some people in cooperatives. Therefore,
efforts are needed to increase public understanding of the role of cooperatives and
strengthen the performance of cooperatives so that they can be more optimal in
realizing a people's economy.

2.3. CHALLENGES AND OPPORTUNITIES FOR MSMES

In the next five years, Micro, Small, and Medium Enterprises (MSMEs) in
Indonesia will face various challenges and significant opportunities. One of the main
challenges faced by MSMEs is limited capital. According to the Center for
Parliamentary Analysis of the Expert Body of the Secretary General of the House of

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 Ahmad Subagyo, Roberto Akyuwen, Martino Wibowo, Diah Nofitasari, and Muhammad Arif Kurniawan

Representatives of the Republic of Indonesia, although MSMEs contributed 61.97%

to GDP in 2020, they still have difficulties in accessing capital for business
development Hariani (2024). This limitation makes it difficult for MSMEs to increase
production scale and reach a wider market.
Another challenge faced by MSMEs is the lack of quality human resources (HR),
especially in the fields of management and technology. This hinders business
efficiency and productivity, and makes it difficult for MSMEs to adapt to changing
times and compete with other business actors Zihan (2024). In addition, weak
promotional capabilities and lack of use of digital technology for product marketing
are also obstacles to the growth of MSMEs.
However, in the midst of these challenges, there is a great opportunity for
MSMEs to develop. The government has developed seven MSME development
strategies for the 2025-2029 period, which include a high-touch approach for
MSMEs that can be a catalyst for the national economy and a low-touch approach
for micro and subsistence enterprises Hariani (2024) This strategy is expected to
help MSMEs overcome existing challenges and take advantage of growth
opportunities.
Digital transformation also opens up great opportunities for MSMEs. Data from
the Ministry of Cooperatives and SMEs shows that 3.79 million MSMEs have used
online platforms to market their products Zihan (2024). This opportunity can be
further utilized by improving the digital capabilities of MSMEs through training and
education, especially for the age group of 15-25 years.
Despite facing various challenges, MSMEs still show extraordinary resilience.
Data from the Ministry of Cooperatives and Small Enterprises shows that the
number of MSMEs in Indonesia in 2020 reached 64.19 million units, an increase of
1.65 percent compared to 2019 Isbahi (2024). The contribution of MSMEs to GDP
also increased from 60.34% in 2019 to 61.07% in 2020. With the right strategy and
support from various parties, MSMEs have great potential to continue to grow and
become the main driver of Indonesia's economy in the next five years.

2.4. SYNERGY STRATEGY OF COOPERATIVES AND MSMES

The synergy strategy between cooperatives and MSMEs is an important step in
developing a populous-based economy in Indonesia. This approach aims to
strengthen cooperative institutions while empowering MSMEs to develop optimally.
By uniting similar MSMEs in a cooperative forum, it is hoped that greater efficiency
and economies of scale can be created.
One of the key strategies is to conduct surveys and observations to identify
potential business development. This includes analyzing potential locations to open
new branches, studying market needs, and assessing the ease of logistics access. The
data collected from these observations is the basis for consideration in making
strategic decisions related to the expansion of cooperatives and MSMEs of their
members.
The use of technology is also an important aspect in the synergy strategy of
cooperatives and MSMEs. In the digital era, the use of ERP (Enterprise Resource
Planning) systems can help manage inventory and accounting more effectively. This
system allows monitoring turnover development, analysis of income statements,
and real-time management of stock of goods. Thus, cooperatives and MSMEs can
make more precise business decisions and be responsive to market changes.
Collaboration between stakeholders is also the key to the success of this
synergy strategy. Close cooperation is needed between the central government,
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local governments, financial institutions, as well as all ministries and institutions

that have cooperative and MSME development programs. This synergy is expected
to optimize various existing development programs, avoid overlap, and ensure
equitable access to available assistance and facilities.
The implementation of the synergy strategy between cooperatives and MSMEs
needs to pay attention to the specific characteristics and needs in each region. Local
governments have an important role in formulating policies and programs that are
in accordance with local potential. An effective strategy must include short-term
aspects to address urgent problems, medium-term for capacity building, and long-
term to ensure the sustainability and competitiveness of cooperatives and MSMEs
in the future.

2.5. GROWTH AND EQUITY THEORY AS A POLICY

INSTRUMENT
The implementation of the grand theory of growth and equity as a problem-
solving tool in optimizing the synergy of cooperatives and MSMEs towards a Golden
Indonesia 2045 is a promising approach to realize inclusive economic development.
The endogenous growth theory of Barro & Martin (2004) is an important
foundation in understanding the dynamics of long-term economic growth. This
theory emphasizes the importance of the role of human capital, innovation, and
government policies in promoting sustainable growth.
In the context of cooperatives and MSMEs, the implementation of the
endogenous growth theory can be realized through improving the quality of human
resources. Training and capacity building for MSME actors and cooperative
administrators is the key to increasing productivity and competitiveness. Investing
in vocational education and training that suits the needs of the MSME sector can
create a skilled workforce that is able to adopt new technologies and improve
production efficiency.
The aspect of equity in growth theory also needs to be considered to ensure
that the benefits of economic growth can be felt widely. The MSME development
strategy in synergy with cooperatives can be an effective instrument in realizing
economic equity. By uniting similar MSMEs in a cooperative forum, a larger
economic scale can be created and a bargaining position in the value chain can be
increased.
The implementation of this theory is also reflected in the government's budget
allocation policy. Local government capital expenditure has a strategic role in
providing basic infrastructure that supports the growth of the MSME sector. Budget
priorities need to be directed to projects that have a high multiplier effect, such as
the construction of roads, ports, or warehousing facilities that can facilitate the flow
of MSME product distribution.
Innovation is another key factor in encouraging sustainable economic growth.
The government needs to create an ecosystem that supports innovation among
MSMEs and cooperatives. This can be done through fiscal incentives for research
and development activities, facilitation of partnerships between MSMEs and
research institutions, and the provision of business incubators that focus on the
development of appropriate technologies.
The MSME development strategy also needs to pay attention to the aspect of
spatial equity. Regional development assistance programs can be directed to reduce
regional inequality, by paying special attention to disadvantaged areas. The

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 Ahmad Subagyo, Roberto Akyuwen, Martino Wibowo, Diah Nofitasari, and Muhammad Arif Kurniawan

provision of digital infrastructure, for example, can open wider market access for
MSMEs in remote areas.
The use of information technology is an important aspect in the MSME
development strategy in the digital era. The use of an Enterprise Resource Planning
(ERP) system can help MSMEs and cooperatives in managing inventory, accounting,
and business analysis more effectively. This allows for faster and more accurate
decision-making in responding to market changes.
Collaboration between stakeholders is also the key to the successful
implementation of the theory of growth and equity. Synergy is needed between the
central government, local governments, financial institutions, as well as related
ministries and institutions to optimize various MSME and cooperative development
programs. This integrated approach can avoid overlapping programs and ensure
equitable access to available assistance and facilities.
In the long term, the implementation of the endogenous growth theory in the
development of MSMEs and cooperatives is expected to create a resilient and
sustainable business ecosystem. This will support the creation of quality jobs,
increase people's incomes, and ultimately contribute to the achievement of the
Golden Indonesia 2045 vision.
Finally, it is important to evaluate and adjust the strategy regularly. Monitoring
of key performance indicators such as productivity growth, labor absorption rate,
and MSME contribution to GDP needs to be carried out consistently. This allows the
government to fine-tune policies and ensure that the implementation of the theory
of growth and equity remains relevant to the ever-changing economic dynamics.

3. CLOSING
3.1. CONCLUSION
Based on the discussion in this paper, it can be concluded that optimizing
synergy between cooperatives and MSMEs has a crucial role in building a strong
people's economic ecosystem towards the vision of Golden Indonesia 2045.
Cooperatives and MSMEs, as the backbone of the national economy, have great
potential to encourage inclusive and sustainable economic growth. However,
various challenges such as limited access to capital, technology, and markets are still
the main obstacles to the development of this sector.
The application of the grand theory of growth and equity is an important
foundation in formulating a strategy for the development of cooperatives and
MSMEs. This approach emphasizes the importance of improving the quality of
human resources, innovation, and supportive government policies. Effective
synergy strategies between cooperatives and MSMEs include the use of digital
technology, strengthening collaboration between stakeholders, and developing
programs that pay attention to the specific characteristics and needs in each region.
The role of the government is very important in creating an ecosystem that is
conducive to the growth of cooperatives and MSMEs. This includes the provision of
adequate infrastructure, fiscal policies that support innovation, and targeted
capacity building programs. Synergy between the central government, local
governments, financial institutions, and the private sector is the key to optimizing
various cooperative and MSME development initiatives.
To achieve the vision of Golden Indonesia 2045, a long-term commitment and
periodic evaluation of the implementation of cooperative and MSME development
strategies are needed. By building a strong people's economic ecosystem through
optimizing the synergy between cooperatives and MSMEs, Indonesia can create
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 Building a People's Economic Ecosystem Through the Synergy of Cooperatives and Msmes for Golden Indonesia 2045

inclusive, sustainable, and globally competitive economic growth. This will

ultimately contribute to improving the welfare of the community at large and
realizing Indonesia's ideals as one of the world's economic powers.

3.2. RECOMMENDATIONS
Based on the discussion in this paper, here are three main recommendations
that can be put forward:
1) Strengthening the digital ecosystem for MSMEs and cooperatives. The
government needs to prioritize the development of information technology
infrastructure that supports the digital transformation of MSMEs and
cooperatives. This includes the provision of equitable internet access,
especially in disadvantaged areas, as well as the development of integrated
digital platforms that facilitate access to markets, financing, and capacity
building. An intensive digital training program is also needed to improve
the ability of MSME actors and cooperative administrators to utilize
technology for business development.
2) Optimizing synergy between stakeholders. Closer collaboration is needed
between the central government, local governments, financial institutions,
academics, and the private sector in developing cooperatives and MSMEs.
The establishment of a cross-sectoral coordination forum can help
harmonize various programs and policies, avoid overlap, and ensure
equitable access to available assistance and facilities. Strategic partnerships
between cooperatives, MSMEs, and large companies also need to be
encouraged to strengthen the value chain and increase competitiveness.
3) Strengthening the data-based monitoring and evaluation system. The
government needs to develop a comprehensive monitoring and evaluation
system to measure the effectiveness of cooperative and MSME development
programs. Systematic data collection and analysis on productivity growth,
labor absorption, and contribution to GDP can help in more targeted policy
adjustments. The implementation of an integrated information system that
connects data from various related agencies is also needed untuk
mendukung pengambilan keputusan berbasis bukti dalam pengembangan
sektor koperasi dan UMKM.

CONFLICT OF INTERESTS
None.

ACKNOWLEDGMENTS
None.

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