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The Intitutional Transformation of Merah Putih Coorperative arthurochman, chariel; Al Ghozali, syeh Nur Alief
Indonesian Journal of Community Empowerment (IJCE) Vol 7 No 2 (2026): Indonesian Journal of Community Empowerment (May)
Publisher : Fakultas Kewirausahaan Universitas Garut

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35899/ijce.v7i2.1216

Abstract

This study analyzes the effectiveness of the Koperasi Kelurahan Merah Putih in Surabaya as an institutional solution to urban competitiveness challenges. Amidst Surabaya's economic growth of 5.76%, the primary challenge for its 12,320 MSMEs is the penetration of modern retail and fintech. Utilizing the framework of Economic Institutionalism Theory, this research examines six strategic innovations, including the transformation of cooperatives into B2B aggregators, the integration of the Simkopdes system with the E-Peken platform, and the Credit Plus Mentoring model. The analysis results indicate that cooperatives functioning as "Mega-Suppliers" and curation centers can reduce transaction costs while creating an integrated mentoring ecosystem. These innovations allow cooperatives to become more than just business units; they become the supply backbone for the city's digital ecosystem without suppressing other local economic businesses.