<![CDATA[Cooperatives play an important role in supporting economic development and members’ welfare; however, increases in cooperative capacity and financial performance are not necessarily accompanied by efficient resource utilization. This study aims to analyze the efficiency of cooperatives in Indonesia and identify factors associated with financial performance and the probability of cooperatives achieving an efficient condition. The study uses secondary data from 34 provinces in Indonesia over the period 2016–2023, comprising 272 observations. The analysis was conducted in three stages. First, Data Envelopment Analysis (DEA) was employed to measure relative efficiency using the number of members, capital, and business volume as inputs and Sisa Hasil Usaha (SHU), the surplus generated by cooperatives, as the output. Second, panel data regression was used to analyze financial performance measured by SHU. Third, binary logistic regression was employed to analyze the probability of cooperatives being in an efficient condition. The DEA results show that cooperative efficiency fluctuated, with the highest average score of 0.759 in 2019 and the lowest of 0.508 in 2022, before increasing to 0.751 in 2023. The panel data regression results indicate that the Lending Base Rate (SBDK) is negatively and significantly associated with SHU, while the number of members, capital growth, and productivity are positively and significantly associated with SHU. Meanwhile, the binary logistic regression results show that the number of members and productivity are positively and significantly associated with the probability of achieving efficiency, whereas capital growth is negatively and significantly associated with efficiency, while SBDK does not show a significant association. These findings indicate that financial performance and efficiency are two related but distinct dimensions of cooperative performance. The findings imply that increasing financial capacity through capital growth needs to be accompanied by improvements in productivity and the ability to convert resources into output proportionally. Therefore, strengthening cooperatives should not focus solely on increasing resources and SHU, but also on optimizing resource utilization to improve efficiency.]]>
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