<![CDATA[ Producer cooperatives in the agricultural sector play a strategic role in supporting food security and improving farmers' welfare in East Java. Nevertheless, many cooperatives still face business sustainability challenges, which are often triggered by low member loyalty and a lack of managerial and financial understanding. This study aims to examine and analyze the effect of member participation and financial literacy on the sustainability of producer cooperatives in the agricultural sector of East Java. This study employs a quantitative approach with an explanatory design. The research sample consisted of administrators and active members of agricultural producer cooperatives across various regions in East Java, selected through a proportional random sampling technique. Data collection was carried out by distributing questionnaires, and the collected data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that member participation (both as owners and service users) and financial literacy have a positive and significant effect on cooperative sustainability. Active participation has been proven to strengthen the cooperative's social and financial capital base. On the other hand, an adequate level of financial literacy enables administrators and members to implement efficient fund governance, make appropriate investment decisions, and mitigate operational risks. In conclusion, to achieve long-term sustainability, producer cooperatives must not only focus on business expansion but also prioritize regular financial education programs and create an inclusive ecosystem to stimulate the active involvement of their members.]]>
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