THE DYNAMIC RELATIONSHIP BETWEEN EXISTING COOPERATIVES AND MSMES WITH KDKMP IN CENTRAL JAVA PROVINCE

Abstract

This study investigates the perceptual disparities between established cooperatives and MSME business owners concerning the existence of the Cooperative Village and Subdistrict Merah Putih, or KDKMP. This research aims to analyze the perceptions of both groups and examine the extent to which KDKMP has role in bridging the development of MSMEs at the local level. The study employs a descriptive quantitative methodology utilizing a survey method through a five-point Likert scale questionnaire, examined via descriptive statistics. The research findings suggest that KDKMP is viewed as capable of facilitating access to economic services and financing for MSMEs; nevertheless, it simultaneously generates apprehensions over rivalry among established cooperatives. This research also found that KDKMP has not yet functioned optimally as a link between SMEs and government programs, due to limited institutional capacity, weak mentoring systems, and the lack of an integrated coaching ecosystem. These findings highlight the need to strengthen KDKMP as a local economic service center that can synergize MSMEs, cooperatives, and the government to improve regional economic empowerment.