What determines the co-operatives‘ productivity in Indonesia? A-two stage analysis

This study empirically measures and analyzes determinants of productivity changes the co-operatives across all 34 provinces in Indonesia over 2015-2020 period using a-two stage approach. In first stage, Data Envelopment Analysis (DEA). Meanwhile, second utilizes a panel regression model to measure analyze Indonesia. The recorded that have experienced 9.7% increase their Total Factor Productivity (TFP), contributed mainly by technical efficiency progress. Furthermore, found business volume has improvement co-operatives' TFP. members, liquidity, indebtedness are deteriorate TFP growth. Profitability, however, is an insignificant effect on growth due non-profit orientation co-operatives. These findings suggest need for diversify activities, supported adoption relevant advanced technologies, particularly use online marketing. addition, should improve financial performances maximize capital restricting liquidity indebtedness. Finally, government support enhance managerial aspects essential realize as pillar Indonesia’s economy, mandated 1945 Indonesian constitution.