Build a strong agribusiness institution through collective action

Abstract

Abstract Agribusiness developments are facing challenges in managing limited natural resources. This requires coordination, synchronization, and cooperation through partnerships or collective action. There have been many partnership efforts in a few agribusiness sectors, however, there is no sign of sustainable partnership. Partnerships often fail due to internal factors from both of the partners. On the other hand, there is also a successful partnership, which is called a cooperative. In several countries, cooperatives have been implemented with great success, which also has contributed to a high Gross National Product value for the country. In Indonesia, the success of cooperatives in the agricultural sector was demonstrated by the success of cooperatives in bringing Indonesia to achieve self-sufficiency in rice in 1984. The relationship between farmers and cooperatives at that time was very strong, but the results of previous research indicated that changes in regulations after the reform period weakened the role of cooperatives in maintaining food stability. The question is “what causes it?” This study tries to conduct a literature review of cooperatives that have succeeded and developed well by using the Systematic Literature Review [SLR] methods. The results show that since the first movement in Indonesia cooperatives is always under government intervention. The lesson to be learned from the success of several countries in building cooperatives is the importance of movements that come from below with collective individuals awareness. Therefore, to build a strong agribusiness institution, it is necessary to re-develop the cooperative management into an integrated agribusiness cooperative based on collective action.