Cooperative Institutional Model for Poverty Alleviation in Coastal Communities: A Case Study of KUD Mino Saroyo, Central Java, Indonesia

Abstract

This study examines the institutional development of the Mino Saroyo Village Unit Cooperative (KUD) in Cilacap Regency, Central Java, and its role in reducing poverty in the coastal area. Using a qualitative approach, this research integrates Scott's (2008) institutional theory—comprising regulative, normative, and cultural-cognitive aspects—with Milton J. Esman’s institutional variables, including leadership, doctrine, programs, resources, and internal structure. Findings reveal that KUD Mino Saroyo operates as an independent cooperative with diverse business units generating significant revenue. Its innovative management strategies have contributed to economic growth and poverty alleviation in the region. The study identifies both supporting factors (such as natural resource potential, government support, and public trust) and inhibiting factors (including market competition, managerial capacity, and technological limitations). A key recommendation is to ensure that cooperative leadership and business unit management are entrusted to competent professionals, holding relevant academic degrees or certifications. Theoretical implications suggest an enhancement to Esman’s framework by incorporating managerial competency as a crucial variable. Additionally, while the highest leadership remains subject to community voting based on normative values, business unit leaders should be appointed by competent authorities to ensure effective management and sustainability.