Research on World Agricultural Economy

A Sustainability of Village Unit Cooperatives Established through Government Policy to Implement the National Rice Procurement Program

Sri Hanggana

Department of Development Extension/Community Development, Postgraduate School, Sebelas Maret University, Surakarta 57126, Indonesia

Suminah

Department of Extension and Agricultural Communication, Faculty of Agriculture, Sebelas Maret University, Surakarta 57126, Indonesia

Sapja Anantanyu

Department of Extension and Agricultural Communication, Faculty of Agriculture, Sebelas Maret University, Surakarta 57126, Indonesia

Akbarudin Arif

Department of Development Extension/Community Development, Postgraduate School, Sebelas Maret University, Surakarta 57126, Indonesia

Haryani Saptaningtyas

Department of Development Extension/Community Development, Postgraduate School, Sebelas Maret University, Surakarta 57126, Indonesia

DOI: https://doi.org/10.36956/rwae.v7i3.3024

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Abstract

This study aimed to identify the role of the village unit cooperative (VUC) in implementing the national rice procurement program and assess the potential sustainability of the VUC business. This study used a qualitative method with a case study approach. Participants, including administrators and internal auditors, were selected using a purposive sampling, while employees and members were selected using snowball sampling. The data collection technique was in-depth interviews and focus group discussions. Data credibility testing involved triangulation and member checks. Data analysis used an interactive model. The results included: (1) The role of VUC was to provide rice according to the quota agreed upon by the VUC administrator with the government-owned Logistics Depot. (2) The key success of the rice trading and rice milling services was the government policy that provided buyers and loan facilities from Bank Rakyat Indonesia (BRI). (3) The key success of the savings and loan business was the government policy that provided loan facilities from BRI. (4) The sustainability of the rice trading and rice milling services business was more determined by government policies. (5) The savings and loan business has been able to maintain its sustainability until now because it has members who are loyal customers. The study implies that to develop VUC, a government policy is needed that involves VUC in running specific programs, such as becoming a food supplier in the free nutritious meal program starting in early 2025.

Keywords: Loan Facilities; Business Capital; Rice Milling Business; Rice Trading Business; Savings and Loan Business

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