<![CDATA[Savings and Loans Cooperatives (KSP) possess a unique dual identity: as financial institutions expected to generate profitability (financial performance) and as social entities aimed at improving member welfare (social performance). In East Java, the existence of KSPs contributes significantly to the regional economy but is often confronted with challenges of mismanagement and conflicts of interest. This study aims to examine and analyze the determinants of the financial and social performance of Savings and Loans Cooperatives in East Java from the perspective of Good Corporate Governance (GCG). This study employs a quantitative approach with an explanatory design. The research sample consisted of administrators and managers of KSPs in East Java, selected through a purposive sampling technique. Data were collected via questionnaires and documentation of the Annual Member Meeting (RAT) reports, and subsequently analyzed using Structural Equation Modeling (SEM). The results indicate that the implementation of GCG principles (Transparency, Accountability, Responsibility, Independence, and Fairness) has a positive and significant effect on both the financial and social performance of the cooperatives. Accountability and transparency were found to be the most dominant indicators in reducing the risk of non-performing loans (NPL) and increasing the active participation of members. In conclusion, good corporate governance is not merely the fulfillment of administrative regulations but a strategic determinant that ensures the cooperative's financial sustainability while simultaneously strengthening its social function within the community.]]>
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