The Improvement of ‘Indonesian Cooperatives’ Management Using Information Systems

In Indonesia, cooperatives and small and medium enterprises contribute a lot to our national economy. However, in fact many cooperatives are inactive. Therefore, the government should pay serious attention to grow and develop cooperatives. Other cooperative problems are less competitive advantages and lack of skilled human resources. The purposes of this study are to investigate (1) how cooperatives process their business transaction; (2) what the advantages and disadvantages of using computer-based accounting system for cooperatives are; (3) whether there are considerations for cooperatives to use computer-based accounting system; (4) how government supports in improving the cooperatives' competitiveness. Units of analysis in this study are 50 public servant cooperatives in central java. Data are collected through focus group discussions, in-depth interviews and documentary studies. Data are then analyzed using descriptive statistical techniques and are completed with literature studies and expert and government agency opinions as well (The Department of Cooperatives and SMEs).The results show that only 20% of cooperatives in Central Java use computer-based accounting systems. By applying computer-based accounting systems, many advantages are obtained. Computer-based accounting systems may access funds from other financial institutions such as banks. PIECES (Performance, Information, Economic, Control, Efficiency, and Service) approach is conducted to analyze the needs of information systems. Furthermore, government supports, such as training and mentoring are needed to improve the quality of human resources. Thus, cooperatives may increase competitive advantages in the global market