Evaluating a Local Economic Empowerment Grant: Growth in Cooperative Capital, Membership, and Net Surplus

Aurora Andi Tribuana (Program Studi Administrasi Publik, Universitas Pembangunan Nasional Veteran Jawa Timur)
Bayu Priambodo (Program Studi Administrasi Publik, Universitas Pembangunan Nasional Veteran Jawa Timur)

Academia Open
Vol. 11 No. 1 (2026): June

General Background: Cooperatives play a strategic role in community-based economic development in Indonesia but often face constraints related to capital, human resources, and institutional sustainability. Specific Background: To address these challenges, the Kediri City Government implemented the PRODAMAS Plus Community Empowerment Program, providing grants to strengthen RW-level cooperatives, including the Kemiri Makmur Cooperative. Knowledge Gap: Despite the widespread implementation of grant-based empowerment programs, empirical evidence on their effectiveness in ensuring long-term cooperative sustainability at the grassroots level remains limited. Aims: This study aims to evaluate the effectiveness of the PRODAMAS Plus economic grant in supporting the sustainability of the Kemiri Makmur Cooperative using Steers’ effectiveness framework. Results: The findings demonstrate that the grant significantly increased cooperative capital, assets, membership, and net surplus (SHU), enhanced service delivery, and enabled short-term business innovation, although sustainability was constrained by limited human resources, space, and leadership regeneration. Novelty: This study provides micro-level evidence of how localized fiscal empowerment influences cooperative performance across multiple effectiveness dimensions. Implications: The results suggest that grant programs should be complemented with continuous mentoring, capacity building, and institutional strengthening to ensure sustained community economic development. Highlights: Grant Impact: Substantial government grants significantly strengthened cooperative capital, assets, and net surplus. Institutional Capacity: Human resource limitations and leadership regeneration remain key challenges to sustainability. Policy Insight: Financial assistance must be integrated with continuous mentoring and capacity building to ensure long-term effectiveness. Keywords: PRODAMAS Plus, Cooperative Sustainability, Community Empowerment, Local Economic Development, Program Effectiveness