The Role of Cooperatives in Social Capital Formation: Empirical Evidence in Indonesia

Sholihah, Nia Kurnia
Yudhistira, Muhammad Halley
Iskandar, Sulistiadi Dono

Jurnal Kebijakan Ekonomi

Social capital is one of the indicators used to assess changes in societal conditions, particularly in evaluating the sustainability of welfare. Higher social capital tends to reduce conflict and facilitate economic transactions. Cooperatives, as organizations with dual objectives (economic and social), represent one potential mechanism for strengthening social capital within communities. This study adopts a quantitative approach and uses Indonesia Family Life Survey (IFLS) data to estimate the impact of cooperative participation on social capital formation, proxied by individuals’ trust across various dimensions and events.