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Design for Assessing the Quality of Internet-Based Governance of

Cooperative Legal Entities

Ulil Hartono, Andre Dwijanto Witjaksono, Sanaji Sanaji

,Yessi Artanti, Nabilla Pepri Pramita

Faculty of Economic and Business, Universitas Negeri Surabaya, Indonesia

DOI: https://doi.org/10.51583/IJLTEMAS.2026.150500152

Received: 30 May 2026; Accepted: 03 June 2026; Published: 10 June 2026

ABSTRACT

Corporate governance is a crucial factor in preventing corruption while simultaneously enhancing organisational

performance and sustainability. In the context of cooperatives as member-based economic entities, implementing

good governance continues to encounter various challenges, particularly those related to the limitations of

measurement models that are both comprehensive and adaptable to the development of digital technology. This

study aims to identify and design a more comprehensive internet-based cooperative governance quality

measurement model by employing a qualitative approach through documentation techniques, unstructured

interviews, and focus group discussions (FGDs) involving stakeholders such as regulators, cooperative

practitioners, and academics. The findings indicate that existing governance measurement models have not yet

fully accommodated the complexity of cooperative characteristics and the demands of digitalisation.

Consequently, this study develops a new model by integrating five principal aspects, namely stakeholders,

transparency, responsibility, accountability, and technical accessibility, which are further elaborated into 167

indicators. The novelty of this research lies in the utilisation of the internet as a governance measurement

medium, as well as the incorporation of stakeholder and technical accessibility dimensions as the main

components of governance evaluation. The resulting model is expected to serve as a more systematic, adaptive,

and relevant instrument for assessing the quality of cooperative governance, while simultaneously supporting

greater transparency, accountability, and public trust. Nevertheless, this study still has limitations regarding the

number of informants and the absence of extensive empirical testing; therefore, future research is recommended

to examine the validity and implementation of the model across various cooperative contexts in Indonesia.

Keywords: Cooperative governance, good corporate governance, digitalisation, stakeholders, transparency,

accountability.

INTRODUCTION

Background

Corporate governance is one of the most important factors influencing corruption. At the same time, corporate

governance, defined as the system that regulates how a company is managed and operated, is closely associated

with corrupt business behaviour because management practices encourage corporate commitment to ethical,

transparent, and responsible conduct in all contractual activities (Carillo et al., 2019). Better governance is

believed to enhance a nation’s quality of life while simultaneously reducing opportunities for corruption that

may endanger public welfare (Musdholifah & Hartono, 2019).

In recent years, the issue of good governance has received increasing attention as an essential foundation for

organisational management, both in the public and business sectors. The implementation of good governance

not only improves organisational performance but also builds stakeholders’ trust and reduces the potential for

conflicts of interest that may be detrimental to the organisation. Research conducted by Kholmi (2020)

emphasises that good governance practices are generally grounded in five principal principles, namely

transparency, accountability, responsibility, independence, and fairness.

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The results of the study indicate that the majority of respondents held positive perceptions of the importance of

implementing these principles, with 70.86% expressing agreement and 25.59% expressing strong agreement

with the indicators used. Nevertheless, a small proportion of respondents, approximately 0.096%, expressed

strong disagreement, particularly concerning the aspect of independence. This finding suggests that although the

concept of good governance has been widely understood and accepted, its practical implementation has not yet

been fully optimal, especially in maintaining organisational independence from external influences. These

findings further confirm the need for a more systematic and adaptive approach to ensure governance principles

are implemented consistently across organisational contexts.

Corporate governance plays an important role in reducing fraud by implementing effective monitoring and

control mechanisms. Research conducted by Velte (2021) demonstrates that corporate governance is closely

associated with the reduction of corporate financial misconduct, including fraud and financial statement

manipulation. A review of 98 empirical studies found that competent boards of directors, management

independence, and gender diversity within corporate boards can strengthen monitoring functions, thereby

reducing opportunities for fraudulent activity. The study further explains that strong governance can minimise

agency conflicts while enhancing the quality of corporate financial reporting.

In addition, research by Apristiana and Utomo (2024) demonstrates that corporate governance significantly

contributes to fraud prevention through the implementation of robust monitoring mechanisms. In a systematic

review of 22 scientific articles published during the 2020–2024 period, the study found that the presence of

independent commissioners, board gender diversity, audit committees, audit quality, and robust internal control

systems reduced the potential for fraud within companies. The study further emphasises that the better the

corporate governance practices implemented, the smaller the likelihood of financial statement manipulation and

corporate asset misappropriation.

Similar findings were also reported by Wahyuni and Hayati (2022) in their study on Islamic banking in Indonesia.

The research demonstrated that good corporate governance significantly reduces fraud levels in Islamic banks

registered with the Financial Services Authority (OJK) during the 2018–2020 period. The implementation of

sound governance practices encourages stronger managerial supervision, greater regulatory compliance, and

enhanced transparency in financial reporting, thereby reducing fraudulent practices in banking operations.

In the context of people-based economic organisations such as cooperatives, good governance plays a strategic

role in enhancing organisational performance and sustainability. Research conducted by Agustina et al. (2022)

demonstrates that the implementation of good corporate governance principles, including transparency,

accountability, responsibility, independence, and fairness, has a positive and significant effect on the financial

performance of cooperatives. This finding confirms that effective governance is not merely normative in nature

but also carries direct implications for organisational performance.

On the other hand, the development of digital technology has also influenced organisational governance

practices. A study conducted by Sukardi et al. (2024) revealed that digital transformation in cooperatives has

become an important factor in improving operational efficiency, transparency, and expanding market access.

This transformation enables organisations to adopt reporting systems, marketing strategies, and data

management practices that are more accountable and real-time, thereby strengthening the implementation of

good governance principles.

In line with this, Tumewu et al. (2024) emphasised that corporate governance mechanisms, such as the roles of

audit committees and external audits, enhance transparency through internet financial reporting, ultimately

supporting decision-making among stakeholders. This finding indicates that good governance cannot be

separated from the utilisation of information technology to promote transparency and accountability.

Furthermore, research by Mayasari and Lokantara (2025) found that strengthening governance within

organisations, particularly modern cooperatives, can significantly improve organisational performance,

particularly through enhanced business management, the adoption of digital technologies, and organisational

innovation. These improvements demonstrate that adaptive governance practices, including digitalisation, are a

key factor in enhancing organisational competitiveness in the modern era.

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Based on the foregoing discussion, it can be concluded that good corporate governance not only serves as a

control mechanism to prevent corruption but also functions as a strategic instrument to enhance organisational

performance, transparency, and sustainability. Nevertheless, a gap persists between the conceptual understanding

and the practical implementation of good governance, particularly in relation to independence and adaptation to

technological change. Therefore, further research is required to examine more comprehensively how governance

principles can be effectively implemented across various organisational contexts, as well as how factors such as

digitalisation and monitoring mechanisms can strengthen the practice of good governance.

Assessments of corporate governance have also evolved over time. In 2006, a study launched the Internet-Based

Corporate Governance (IBCG) Rating, an internet-based corporate governance assessment. This internet-based

assessment was subsequently developed into the Internet-Based Corporate Governance Rating Modified, as

proposed by Hartono & Musdholifah (2016). In the measurement framework of the Internet-Based Corporate

Governance Rating Modified, five categories remain consistent with the measurement approach introduced by

Grzybkowski and Wójcik (2011), namely shareholders, transparency, board of directors, executive management,

and technical accessibility.

In Indonesia, internet-based corporate governance measurement models have also undergone several

developments. Since each business entity or legal institution possesses different characteristics and criteria,

corporate governance measurement models continue to evolve. Because the Internet-Based Corporate

Governance Rating Modified was considered suitable only for profit-oriented entities, in 2019, the model was

further developed to measure governance practices in foundation-based legal entities Musdholifah & Hartono,

2019). The limitations of this measurement model subsequently prompted further development. In 2020, the

Internet-Based Corporate Governance Rating Modified was again refined to assess sharia-based companies by

adapting the measurement criteria to the laws and principles derived from the Qur’an and Hadith.

As noted by Wuryani et al. (2019), cooperatives are legal entities that conduct their activities in accordance with

democratic principles. According to the Indonesian Cooperative Law Number 17 of 2012, a cooperative is a

legal entity established or organised by a legal organisation. Cooperatives encompass economic, social, and

cultural dimensions in accordance with their underlying principles. The primary objective of cooperatives is to

improve the welfare of their members. Wuryani and Yanthi (2020) found that cooperatives possess unique

characteristics compared to other organisations, particularly their principle of providing equitable and beneficial

outcomes for all cooperative members.

Cooperatives and Micro, Small, and Medium Enterprises (MSMEs) have contributed significantly to

employment absorption in Indonesia and to the growth of Gross Domestic Product (GDP). Nevertheless, such

synergy has not been entirely free of corrupt practices by certain parties. In 2021, a corruption case in the Malang

region was uncovered by the East Java High Prosecutor’s Office, resulting in state losses of IDR 74 billion. In

the same year, another corruption case involved the chairman of a cooperative, who was sentenced to 10 years

of imprisonment for corruption amounting to IDR 3.4 billion. Furthermore, in 2022, a corruption case involving

former leaders of LPDB-KUMKM and several other parties caused state losses totaling IDR 116.8 billion.

The success of cooperatives in achieving their objectives, as well as their failure to maintain organizational

sustainability, largely depends on their ability to implement good governance consistently and effectively.

Cooperative governance in Indonesia has not yet been specifically regulated by the Ministry of Cooperatives

and SMEs. At present, the assessment of cooperative governance quality is reflected only in several Ministerial

Regulations and Deputy Ministerial Regulations Arda et al. (2021). According to Arda et al. (2021), the

Regulation of the Deputy for Institutional Affairs of the Ministry of Cooperatives and Small and Medium

Enterprises Number 04/Per/Dep.1/III/2018 concerning Cooperative Assessment Criteria and Indicators has not

yet comprehensively regulated cooperative governance. The regulation also does not encompass compliance

with taxation regulations and applicable accounting standards, including compliance in the preparation of

financial statements based on the Financial Accounting Standards for Entities Without Public Accountability

(SAK ETAP).

References concerning cooperative governance developed by academics and practitioners remain limited

primarily to Savings and Loan Cooperatives (KSP) and Savings and Loan Units (USP). Consequently, the

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assessment framework was further developed by Arda et al. (2021) into a model consisting of 15 dimensions

and 97 measurement indicators. Nevertheless, according to the authors, the study still possesses certain

limitations because the measurement process is conducted manually, thereby requiring further development

and refinement.

Research Question

1. How are the components of the internet-based governance quality measurement design for cooperative

legal entities structured?

2. How is the internet-based governance quality measurement design for cooperative legal entities

developed?

Purpose

1. This study aims to identify and analyze the process of designing the components of governance quality

measurement for internet-based cooperative legal entities.

2. This study also aims to examine and analyze the design of governance quality measurement for internet-

based cooperative legal entities.

LITERATURE REVIEW

Cooperative

A cooperative is a business entity consisting of individuals or cooperative legal entities whose activities are based

on cooperative principles and function as a people-oriented economic movement founded upon the principle of

kinship, as stipulated in the Law of the Republic of Indonesia Number 25 of 1992 concerning Cooperatives. As

an economic institution for micro and small business communities, cooperatives have demonstrated their

capability as resilient economic actors, particularly in addressing unemployment issues.

A cooperative is an organization that is owned by its members, democratically managed by its members, and

operated to fulfill the interests and needs of its members. The article also emphasizes that cooperatives differ

from capitalist enterprises because they focus more on meeting members’ needs and promoting community

welfare rather than solely maximizing financial profits (Schlenker et al, 2026).

A cooperative represents a collective enterprise formed by a group of individuals with shared interests, managed

independently by its members with the primary objective of improving members’ welfare Solihin (2023).

According to Rizqi et al. (2024), cooperatives are regarded as collaboration-based economic entities involving

various stakeholders in achieving common objectives, while simultaneously strengthening participation and

economic sustainability within modern economic systems. Cooperatives are also dynamic business entities that

evolve in response to changes in the economic environment, functioning as economic organizations oriented

toward members’ welfare and adaptive to external conditions such as regulations and economic crises Suwandi

(2024).

Good Corporate Governance (GCG)

There is no single universally applicable definition of corporate governance, as governance frameworks are

highly influenced by the legal, institutional, and contextual characteristics of each country. In the latest OECD

document, namely the G20/OECD Principles of Corporate Governance 2023, corporate governance is

understood as a system of relationships among company management, the board of directors, shareholders, and

other stakeholders. Furthermore, corporate governance also encompasses the structures and mechanisms used to

direct companies, establish organizational objectives, and determine the methods for achieving and monitoring

corporate performance. These principles are designed as a flexible reference framework, allowing their

implementation to be adapted to the national conditions of each country rather than functioning as a rigid and

uniform standard Organisation for Economic Co-operation and Development (2023).

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Based on the Indonesia Corporate Governance Manual (Second Edition), corporate governance or Good

Corporate Governance (GCG) is comprehensively defined through two principal perspectives, namely the

internal perspective, which regulates the relationships among shareholders, boards of commissioners, and

directors, and the external perspective, which encompasses the company’s relationships with stakeholders such

as investors, employees, creditors, consumers, as well as surrounding communities and the environment. More

broadly, GCG is viewed as a system intended to ensure the flow of external capital and promote socially efficient

investment, where its implementation involves the establishment of internal structures and processes aimed at

maintaining investor confidence, improving access to capital, and mitigating corporate exposure to financial

crises International Finance Corporation and Otoritas Jasa Keuangan (2018).

Research conducted by Kholmi (2020) states that good governance consists of five principal principles, namely

transparency, accountability, responsibility, independence, and fairness, which are utilized as indicators in

assessing organizational governance. The study further emphasizes that the implementation of these principles

is necessary to establish organizations that are effective, efficient, and capable of reducing conflicts of interest

among stakeholders. In line with this, Agustina et al. (2022) explain that these GCG principles exert a positive

and significant influence on organizational financial performance, particularly within cooperatives. Furthermore,

Tumewu et al. (2024) emphasize that the implementation of corporate governance mechanisms, especially

through the roles of audit committees and external audits, contributes to enhancing transparency and the quality

of Internet Financial Reporting. According to Setyorini et al. (2023), corporate governance refers to a system of

procedures and structures designed to guide organizations, families, and ownership in supporting effective

decision-making, protecting stakeholders’ interests, and ensuring organizational resilience and sustainability,

particularly within family firms. This demonstrates that the principles of transparency and accountability within

GCG are increasingly strengthened through the utilization of digital technology in modern organizational

practices, thereby confirming that good governance is not merely a normative concept, but also plays a direct

role in improving organizational performance in a tangible manner.

Cooperative Governance

The implementation of cooperative governance within organizations can be observed through the active

participation of both chairpersons and members in supporting the operational accountability of cooperatives. The

accountability report of the chairperson is presented during the annual members’ meeting. Meanwhile, the

responsibility of members lies in fulfilling their obligations as cooperative members and actively participating

in cooperative operations. The cooperative business examined in this study is the savings and loan sector.

Through the Members’ Meeting, the cooperative determines the minimum and maximum loan values that may

be granted. The determination of the minimum loan value is associated with the effectiveness of credit

distribution, whereas the determination of the maximum loan value is related to loan risk control Wuryani &

Yanthi (2020).

Cooperative governance is a system (structure and processes) for managing and controlling a cooperative

organization, as well as establishing obligations among various people involved in the organization, such as the

board, members, employees, and administration, as well as the procedures and rules for decision-making in this

organization. Cooperative Governance refers to the relationship between members as business owners,

management as the operational executor, and the board that directs management on behalf of the members to

achieve the objectives of the cooperative (Jamaluddin et al, 2023).

Nainggolan et al. (2016) state that, based on the definition of GCG as well as cooperative principles and values,

five GCG principles are employed as supervisory dimensions to determine the essential indicators that must be

implemented and to provide management with an understanding of their importance. These variables are utilized

in developing GCG to achieve and advance cooperative objectives. The five dimensions applied are: (1)

democracy, (2) independence, (3) human resource quality, (4) transparency, and (5) accountability. Prasad (2022)

further explains that modern cooperative governance not only focuses on classical GCG principles, but also

incorporates values such as democracy, solidarity, social responsibility, and member participation, which

constitute the distinctive characteristics of cooperatives in achieving organizational sustainability.

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Stakeholder Theory

Stakeholder theory within the context of strategic management has continued to experience significant

development in recent years. Stakeholder theory, introduced by R. Edward Freeman in 1984, has become one of

the main foundations in economic and management studies, as it emphasizes the importance of considering the

perspectives and needs of various stakeholders in corporate decision-making processes (Freeman, 1984). Unlike

the traditional shareholder-oriented approach, which focuses solely on maximizing shareholder value, this theory

promotes a broader perspective by taking into account the interests of all parties affected by organizational

activities (Babiak & Kihl, 2018; Signori & Fassin, 2023; Sonjaya, 2024; Blach et al. 2025). Research conducted

by Valentinov and Chia (2022) emphasizes that stakeholder theory functions not only as an ethical framework,

but also as a strategic approach that positions relationships among actors as the core of organizational value

creation. This perspective views organizations as dynamic networks of social relations, in which continuous

interactions between companies and stakeholders become key factors in the success of organizational strategies.

In line with this perspective, Bridoux and Stoelhorst (2022) explain that recent developments in strategic

management have experienced a “stakeholder turn,” namely a shift from a purely economic-based approach

toward one that simultaneously integrates economic, social, and moral dimensions. Within this approach,

stakeholder management is no longer viewed merely as an ethical issue, but rather as a fundamental component

in organizational value creation and competitive advantage.

Furthermore, research conducted by Awa, Etim, and Ogbonda (2024) emphasizes that modern organizations are

confronted with increasingly complex pressures from various stakeholders, thereby requiring companies to adopt

more pragmatic and adaptive approaches in managing such relationships. The integration of Corporate Social

Responsibility (CSR) and stakeholder management has become essential in ensuring organizational

sustainability while simultaneously fulfilling social expectations. According to the article by Błach et al. (2025),

stakeholder theory is understood as an approach that emphasizes that corporate success and sustainability are

strongly influenced by the company’s relationships and interactions with various stakeholders, both internal and

external, who possess interests, expectations, and influence over organizational decisions and performance,

particularly in the implementation of Environmental, Social, and Governance (ESG) practices

In addition, a systematic study conducted by Mahajan et al. (2023) demonstrates that stakeholder theory has

evolved into a major framework within strategic management, particularly in relation to organizational

performance, sustainability, and strategic decision-making. The study further identifies that stakeholder

management plays an important role in improving organizational performance through effective relationship

management and the creation of shared value.

Accordingly, the stakeholder management approach is currently regarded as a strategic mechanism that not only

integrates ethical and business dimensions, but is also capable of creating organizational governance that is more

inclusive, adaptive, and sustainable. Within the context of cooperatives, this approach becomes increasingly

relevant because the member-based organizational structure intrinsically integrates economic and social interests

within a cooperative governance system.

The Use of the Internet as a Governance Measurement Medium

The use of the internet as a medium for measuring corporate governance was introduced by Grzybkowski and

Wojcik (2011) through the Internet Based Corporate Governance Rating (IBCG Rating), which was developed

based on the 2004 OECD principles. This measurement framework is proxied into five aspects, namely

shareholders, transparency, board of directors, executive management, and technical accessibility.

The IBCG Rating was constructed using 120 criteria distributed across five principal categories, namely

shareholders, transparency, board of directors, executive management, and technical accessibility. Within the

shareholder aspect, the IBCG consists of three discussion topics divided into several subcategories, including

the disclosure of rights and obligations, ownership structure, ownership principles and shareholder departments,

core ownership functions covering voting procedures and general meetings of shareholders (GMS), as well as

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equal treatment in access to information, interactive participation in GMS, and shareholder notification

mechanisms.

In the transparency section, the IBCG considers transparency procedures encompassing both audited and

unaudited information, information storage, validation procedures, financial calendars, auditors, independent

accounting reports, and non-financial reports. The presentation of financial data is directed toward annual

reports, stock price changes, disclosure timing, and disclosures regarding the scope of capital involvement in

both listed and unlisted companies.

Within the board of directors category, the discussion is divided into five subcategories, namely general

regulatory disclosure, board committees, board composition, board remuneration, and reporting. Meanwhile, the

executive management category is designed in a similar manner, although the questions are adjusted according

to the specific roles and managerial involvement of executives.

Finally, in the fifth category, namely technical accessibility, the aspects assessed include the degree of

technological conformity with website publication standards, usability, and other aspects related to the

presentation of financial data.

The following is the IBCG Rating formula as explained by Grzybkowski & Wojcik (2011):

IBCG Weighted = ((Score/Max Points) X 100%) X (Max Weighted Points)

The categories and subcategories of the measurement were subsequently formulated to obtain a governance

index ranging from 0 to 100.

Table 1. Main Categories of the Modified IBCG Rating

IBCG’s Categories

Max Points

Max Weighted Points

Shareholders

Transparency

Board of Directors

Executive Management

Technical Accessibility

Total

134

100

Source: Ethic & Corporate Governance Textbook Hartono et al. (2021)

The quality of corporate governance was measured using the governance index developed by Musdholifah and

Hartono (2015), which was proxied through the Modified IBCG Rating [3]. The original IBCG Rating

measurement, which initially consisted of 120 criteria, was subsequently expanded into 134 criteria distributed

across five principal categories, namely: (1) Shareholders; (2) Transparency; (3) Board of Directors; (4)

Executive Management; and (5) Technical Accessibility.

The measurement model developed by Hartono and Musdholifah (2019) has been implemented in Indonesia to

assess governance practices within state-owned enterprises (BUMN) and regionally owned enterprises (BUMD).

Furthermore, the model has been modified to evaluate governance in foundations Musdholifah & Hartono (2019)

as well as sharia-based companies Hartono et al. (2021).

METHODS

This study employs a qualitative research method with a descriptive approach aimed at understanding and

developing a more comprehensive cooperative governance measurement model based on empirical conditions

and the prevailing regulations in Indonesia. The qualitative approach was selected because this research does not

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merely focus on numerical measurement, but rather emphasizes an in-depth understanding of the implementation

of Good Corporate Governance (GCG) within cooperatives through the interpretation of data, informants’

experiences, institutional documents, and the actual conditions of cooperatives. According to Moleong (2021),

qualitative research is intended to comprehensively understand phenomena experienced by research subjects

through descriptions in the form of words and language within natural contexts by utilizing various scientific

methods.

The focus of this study is to modify the IBCG Rating Modified developed by Musdholifah and Hartono (2015),

which consists of five main categories and 134 governance assessment subcategories, and subsequently adapt

them to the characteristics of cooperatives in Indonesia. In addition, this study also develops a cooperative

governance model based on the concept introduced by Arda et al. (2021), which comprises 15 dimensions and

97 indicators for assessing cooperative governance quality. The development process was carried out by

incorporating novel elements in the form of indicators related to cooperative compliance with cooperative

regulations, accounting standards, taxation, as well as additional indicators derived from Focus Group

Discussions (FGDs), literature reviews, and interviews with relevant parties. Accordingly, the study is expected

to produce a cooperative governance measurement model that is more adaptive to digitalization developments

and the supervisory needs of modern cooperatives.

The research objects were determined using purposive sampling techniques because the sample selection was

conducted based on specific criteria relevant to the objectives of the study. According to Ulum and Juanda (2018),

purposive sampling is a sampling technique based on particular considerations in order to obtain data that are

more appropriate to the research needs. The research objects in this study were cooperatives that already

possessed a Cooperative Identification Number and maintained official websites, either independently managed

websites or websites facilitated by the Ministry of Cooperatives and SMEs. The selection of website-based

cooperatives was undertaken because the research is oriented toward developing transparent and digitalization-

based cooperative governance.

Data collection techniques were conducted through documentation, unstructured interviews, and Focus Group

Discussions (FGDs). Documentation was utilized to obtain secondary data such as financial statements, annual

reports, cooperative SOPs, annual members’ meeting documents (RAT), organizational structures, cooperative

regulations, and information available on cooperative websites. Unstructured interviews were conducted to

explore in-depth information regarding the implementation of cooperative governance and the need for

developing governance assessment indicators. Interviews involved various parties possessing expertise in the

cooperative sector, such as the Indonesian Association of Cooperative Lecturers and Researchers (ADOPKOP),

the Ministry of Cooperatives and SMEs, the East Java Provincial Cooperative Office, Regency/City Cooperative

Offices, the Indonesian Cooperative Council (DEKOPIN), and cooperatives serving as research samples.

Furthermore, FGDs were employed to obtain input, validation, and consensus regarding the cooperative

governance indicators developed in this study. The primary instrument in this research was the researcher as a

human instrument who played a role in determining the research focus, collecting data, interpreting data, and

drawing research conclusions.

The data analysis technique in this study was conducted in stages in accordance with the qualitative research

approach. The stages of data analysis referred to the framework proposed by Moleong (2021), namely reading

and comprehensively examining the data, identifying keywords, determining emerging themes, discovering

relational patterns among data, and conducting coding processes on interview, documentation, and FGD results.

The analysis was carried out continuously from the data collection stage until the completion of the study,

enabling the researcher to obtain a profound understanding of cooperative governance development.

The data collection phase in this study was conducted through in-depth interviews with various parties directly

involved in the supervision, development, and implementation of cooperative governance in Indonesia. The

primary information was obtained from ADOPKOP as the key informant, particularly in the supervision and

cooperative development division. In addition, this study involved the Ministry of Cooperatives and SMEs of

the Republic of Indonesia, the East Java Provincial Cooperatives Office, DEKOPIN, and one sample cooperative

as empirical data sources. The involvement of these stakeholders was intended to obtain a more comprehensive

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perspective regarding the needs, challenges, and implementation of digital-based cooperative governance in

Indonesia.

Following the data collection process, the study proceeded to the regulatory adjustment stage by referring to

various regulations related to cooperative governance and supervision in Indonesia, including Ministerial

Regulation of Cooperatives No. 13 of 2015, Ministerial Regulation of Cooperatives No. 17 of 2015, Ministerial

Regulation of Cooperatives No. 19 of 2015, Ministerial Regulation of Cooperatives No. 20 of 2015, Ministerial

Regulation of Cooperatives No. 21 of 2015, Ministerial Regulation of Cooperatives No. 9 of 2018, Deputy

Regulation No. 4 of 2018, Ministerial Regulation of Cooperatives No. 9 of 2020, as well as Technical Guidelines

No. 15 of 2021. This stage was carried out to ensure that the internet-based cooperative governance model

developed remained aligned with the legal provisions, supervisory standards, and cooperative operational

principles applicable in Indonesia..

To ensure data validity, this study employed four criteria of qualitative data validity, namely credibility,

transferability, dependability, and confirmability. Credibility was established through prolonged engagement in

the field, persistent observation, triangulation of sources and methods, and member checking with research

informants. Transferability was achieved by providing detailed and systematic descriptions of the research so

that the findings could be applied to similar contexts. Dependability was maintained through auditing the entire

research process, from data collection to conclusion drawing, while confirmability was ensured by verifying that

the findings genuinely originated from empirical field data rather than the researcher’s subjectivity. Through

these stages, this study is expected to produce a more comprehensive website-based Good Corporate Governance

measurement model for cooperatives that is relevant, adaptive to digitalization developments, and capable of

serving as a reference for improving transparency, accountability, and cooperative governance quality in

Indonesia.

The following is the flow of the conceptual framework of this study:

Figure 1. Conceptual Framework

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RESULTS

The results of this study indicate that, to date, there has been no standardized model specifically designed to

measure the quality of website-based governance in cooperative legal entities in Indonesia. Based on interviews,

regulatory reviews, documentation, and literature studies conducted by the researchers, cooperative governance

measurement has thus far primarily referred to cooperative health assessments and has not fully integrated

aspects of digitalization or internet-based transparency. Consequently, this study formulated a website-based

Good Corporate Governance (GCG) measurement design for cooperatives, developed from the Internet Based

Corporate Governance (IBCG) model, various cooperative regulations, and the institutional characteristics of

cooperatives in Indonesia. The findings demonstrate that website-based cooperative governance is not solely

related to information transparency, but also encompasses accountability, regulatory compliance, digital

accessibility, and the strengthening of relationships between cooperatives, members, and the wider community.

Based on observations and interviews conducted with Koperasi Setia Bhakti Wanita as a cooperative that has

utilized a website in its institutional activities, it was found that the website has been used as a medium for

disseminating information to members and the public. The cooperative’s website contains several main menus,

such as home, about us, business units, and contact. The home menu provides cooperative news and activity

archives, while the about us section includes information regarding the cooperative’s history, vision and mission,

organizational structure, membership, and capital development. In addition, the business units menu contains

information regarding savings and loan products, retail services, and cooperative service units. These findings

indicate that websites can serve as important media in supporting cooperative transparency principles,

particularly in disseminating organizational information, business services, and cooperative developments to

members and the general public.

The study also found that the implementation of website-based cooperative governance requires the support of

a strong supervisory system. Based on interviews with cooperative representatives, it was revealed that the

cooperative conducts internal audits every month and external audits twice a year to maintain transparency and

evaluate operational performance. The implementation of these audits constitutes an important indicator within

the dimensions of accountability and transparency, given that cooperatives, as member-based institutions, bear

direct responsibility for managing members’ funds. Furthermore, the study discovered that cooperatives still rely

on the previous guideline, namely Ministerial Regulation Number 17 of 2015, as the operational basis, despite

the existence of the newer regulation, Ministerial Regulation Number 9 of 2020 concerning Cooperative

Supervision. This finding indicates that compliance with updated regulations constitutes an important aspect that

must be incorporated into the design of website-based cooperative governance measurement.

The findings from interviews with representatives of the Indonesian Association of Cooperative Lecturers and

Researchers (ADOPKOP), the Indonesian Cooperative Council (DEKOPIN), and the Ministry of Cooperatives

and SMEs of the Republic of Indonesia indicate that no specific component has officially been established as a

standard for measuring internet-based cooperative governance. The Ministry of Cooperatives and SMEs still

utilizes the Cooperative Health Examination Worksheet (KKPKK), which refers to Technical Guidelines

Number 15 of 2021, as an instrument for evaluating cooperative governance. This study found that the

examination system remains focused on cooperative health aspects and has not comprehensively accommodated

the utilization of digital technology and website-based information disclosure. Therefore, this study developed

a measurement model integrating cooperative governance principles with aspects of digitalization and public

information accessibility.

To ensure data validity, this study employed triangulation of sources techniques by comparing and verifying

information obtained from various informants, namely Koperasi Setia Bhakti Wanita, Asosiasi Dosen dan

Peneliti Koperasi Indonesia (ADOPKOP), DEKOPINDA Kota Surabaya, the Cooperative Office, and the

Ministry of Cooperatives and SMEs. The triangulation results demonstrated both alignment and differences in

emphasis among informants, which essentially complemented one another. Koperasi Setia Bhakti Wanita

emphasized the implementation of transparency, accountability, responsibility, and independence principles

through Annual Members’ Meetings (RAT) and audit mechanisms; ADOPKOP highlighted the importance of

alignment with governance principles and regulations without necessarily being bound to specific technical

components; DEKOPINDA emphasized the urgency of accountability oriented toward vision and outcomes;

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while the Ministry and related offices stressed aspects of digitalization, supervision, and regulatory

strengthening. Despite differences in perspective, all informants shared common views regarding the importance

of GCG principles, transparency, accountability, and regulatory compliance. Thus, the triangulation results

indicate that the data utilized possess a high level of credibility and are therefore valid in supporting the

formulation of a website-based cooperative governance quality measurement design.

The results of the model development indicate that the website-based governance quality measurement design

for cooperative legal entities consists of five principal aspects, namely stakeholders, transparency, responsibility,

accountability, and technical accessibility. These five aspects were developed from the Internet Based Corporate

Governance model previously utilized for corporations, state-owned enterprises, regionally owned enterprises,

and foundations. This study subsequently adapted the model to cooperative principles as people-based

organizations that position members as both owners and users of cooperative services. During the development

stage, the study formulated a total of 167 assessment indicators based on the triangulation of interview results,

regulations, and previous research findings.

Within the stakeholder aspect, the indicators developed include members’ rights, disclosure of member

information, member participation in Annual Members’ Meetings (RAT), member communication mechanisms,

and member involvement in cooperative decision-making. The study found that the people-based principle

within cooperatives constitutes the primary distinction between cooperative governance and general corporate

governance. Therefore, aspects related to member participation and organizational democracy became important

indicators within the website-based cooperative governance measurement design.

In the transparency aspect, the study found that cooperatives need to provide information that is easily accessible

through their websites, such as financial statements, annual reports, audit reports, organizational structures,

business activity information, and announcements regarding Annual Members’ Meetings (RAT). Furthermore,

the study incorporated indicators related to digital information disclosure, including the availability of

downloadable reports, data presentation in Excel or XBRL formats, and the provision of whistleblowing systems.

These findings demonstrate that the digitalization of cooperative governance is not merely associated with the

existence of a website, but also with the quality of information presented through the website itself.

Regarding the aspects of responsibility and accountability, the study identified the importance of the existence

of Standard Operating Procedures (SOPs), internal and external audit systems, institutional legality, tax

compliance, and compliance with cooperative accounting standards. New indicators added in this study include

cooperative compliance with SAK ETAP, tax reporting obligations, ownership of Taxpayer Identification

Numbers (NPWP) by cooperative administrators, and financial statement audits conducted by Public Accounting

Firms. These additional indicators were included because the study found that regulatory and accounting

compliance are important factors in enhancing cooperative credibility and preventing fraud in cooperative

management.

Meanwhile, within the technical accessibility aspect, the study found that the quality of website-based

cooperative governance is also influenced by the quality of the technology utilized. The study identified several

important indicators, including browser compatibility, website security, the existence of search engines, site

maps, ease of data retrieval, user personalization, and the availability of digitally processable data. This aspect

demonstrates that modern cooperative governance cannot be separated from the readiness of information

technology and digital security systems that support transparency and the protection of cooperative members’

data.

Overall, the findings of this study indicate that the development of a website-based Good Corporate Governance

measurement model for cooperatives constitutes an important step in promoting the modernization of

cooperative governance in Indonesia. The resulting model not only integrates cooperative governance principles,

but also accommodates digitalization developments and the need for public information disclosure. Through the

implementation of this measurement model, cooperatives are expected to improve transparency, accountability,

regulatory compliance, and member participation through more optimal utilization of digital technology and

cooperative websites.

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DISCUSSION

The findings of this study indicate that the development of a website-based Good Corporate Governance (GCG)

measurement model for cooperatives has become an important necessity in supporting the modernization of

cooperative governance in Indonesia. Thus far, cooperative governance measurement has primarily focused on

cooperative health aspects and has not fully integrated the principles of digitalization, information disclosure,

and internet-based public accessibility. The findings demonstrate that the development of information

technology has encouraged cooperatives not only to focus on internal management, but also on their ability to

transparently disseminate information to members and the public through digital media. Therefore, this study

develops a website-based cooperative governance measurement model as an adaptation to the evolution of

modern organizational governance, which increasingly emphasizes the principles of transparency,

accountability, and information disclosure.

The study also reveals that the concept of Internet Based Corporate Governance (IBCG), which has previously

been widely utilized in corporations, can be adapted to cooperative governance by adjusting it to the

characteristics of cooperatives as people-based organizations. In cooperatives, members hold dual roles as both

owners and users of cooperative services, thereby making member participation a primary indicator of

cooperative governance. This finding is consistent with cooperative principles that emphasize economic

democracy, equality of members’ rights, and participatory decision-making through Annual Members’ Meetings

(RAT). Consequently, this study positions stakeholders and member participation as important dimensions within

the website-based GCG measurement model for cooperatives. Cooperative websites are therefore not merely

positioned as information media, but also as digital communication platforms between cooperatives and

members in supporting more open and efficient organizational participation.

This study finds that transparency constitutes one of the most dominant aspects in the development of website-

based cooperative governance. The existence of a website enables cooperatives to provide access to various

important forms of information, such as financial statements, annual reports, business activities, organizational

structures, audit reports, and announcements regarding Annual Members’ Meetings (RAT), in a manner that is

more easily accessible to both members and the public. Such conditions support the creation of information

disclosure and public oversight over cooperative management. These findings support Good Corporate

Governance theory, which states that transparency is a fundamental principle in establishing healthy and

trustworthy organizations. Information transparency through websites also has the potential to enhance members’

trust in cooperatives because members are able to access information quickly and in real time without having to

wait for the implementation of annual meetings.

In addition to transparency, this study demonstrates that accountability and regulatory compliance are important

factors in developing cooperative governance models. The findings reveal that cooperatives possessing regular

internal and external audit systems tend to demonstrate better organizational management and greater

preparedness in addressing risks of fraud and financial mismanagement. This finding reinforces the perspective

that supervision and internal control systems constitute essential elements of organizational governance. The

study also found that compliance with taxation regulations, accounting standards, and institutional legality

remains a challenge for many cooperatives. Therefore, this study incorporates indicators related to tax

compliance, compliance with SAK ETAP, ownership of Taxpayer Identification Numbers (NPWP) by

cooperative administrators, and financial audits conducted by Public Accounting Firms as novel elements within

the website-based cooperative governance measurement model. The inclusion of these indicators aims to

strengthen the quality of cooperative management and improve cooperative credibility in the eyes of members

and external stakeholders.

The findings further demonstrate that the digitalization of cooperative governance is not solely related to the

existence of websites, but also concerns the quality of technology and accessibility of the information provided.

The study identifies that technical aspects such as website security, browser compatibility, the availability of

search engines, ease of navigation, and digital data formats constitute important components in supporting the

effectiveness of website-based cooperative governance. These findings indicate that modern cooperatives need

to possess adequate information technology readiness in order to provide information services that are effective,

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secure, and easily accessible. In this context, websites function not only as promotional media, but also as

governance instruments that support organizational transparency and accountability.

This study also demonstrates that the development of a website-based cooperative GCG measurement model

possesses practical implications for governments, cooperatives, and regulators. For the government and the

Ministry of Cooperatives and SMEs, this model may serve as an alternative for developing a more modern and

digital-based cooperative governance evaluation system. Up to this point, cooperative examination systems have

remained oriented toward assessing cooperative health and therefore have not fully measured the quality of

digital transparency and public information disclosure within cooperatives. Meanwhile, for cooperatives, this

model may function as a guideline for improving organizational management quality through the optimization

of information technology and the digitalization of cooperative services. The utilization of websites integrated

with governance principles can assist cooperatives in enhancing member participation, expanding access to

information, and strengthening the professional image of cooperatives within society.

From an academic perspective, this study contributes to the development of literature concerning digital-based

cooperative governance. Previous studies have predominantly discussed corporate governance and Good

Corporate Governance measurement within the corporate sector, whereas research concerning website-based

cooperative governance remains highly limited. Accordingly, this study expands the discourse regarding the

implementation of Good Corporate Governance within cooperative organizations by integrating cooperative

principles, digitalization, and website-based transparency. The resulting measurement model is expected to

provide a foundation for future research related to digital cooperative governance, information technology-based

cooperative supervision, and the development of cooperative assessment systems that are more adaptive to the

evolution of the digital era

Implication

This study carries theoretical, practical, and policy implications for the development of digital-based cooperative

governance in Indonesia. From a theoretical perspective, this research contributes to the development of the

Good Corporate Governance (GCG) concept within the cooperative sector by integrating modern governance

principles with website-based digitalization. To date, studies concerning GCG have predominantly been applied

to corporations and the corporate sector, whereas research on website-based cooperative governance remains

relatively limited. Therefore, this study expands the literature on cooperative governance by introducing a

measurement model that not only evaluates cooperative health aspects, but also assesses information disclosure,

digital accessibility, regulatory compliance, and member participation through website-based media. This

research further reinforces the concept that organizational digitalization can function as an important instrument

for enhancing transparency, accountability, and the effectiveness of cooperative supervision.

From a practical perspective, the findings of this study may serve as a guideline for cooperatives in improving

organizational governance quality through the utilization of information technology and cooperative websites.

The measurement model developed in this study can assist cooperatives in evaluating the quality of

organizational management more comprehensively, particularly in aspects such as financial reporting

transparency, information disclosure to members, digital document management, audit systems, and compliance

with taxation regulations and accounting standards. In addition, the use of websites as governance instruments

may help cooperatives strengthen communication with members, expand access to information services, and

enhance the trust of members and the public in cooperatives. Another practical implication is the encouragement

for cooperatives to become more adaptive to digitalization developments, thereby enabling cooperatives not only

to function as traditional economic institutions, but also to evolve into modern organizations based on

information technology.

From a policy perspective, this study may provide valuable input for the Ministry of Cooperatives and SMEs of

the Republic of Indonesia, the Indonesian Cooperative Council (DEKOPIN), and cooperative supervisory

institutions in developing a more modern and digital-based cooperative governance evaluation system. Thus far,

cooperative assessment systems have remained focused on cooperative health aspects and have not fully

integrated indicators related to digital information disclosure and the quality of cooperative websites. Through

the implementation of a website-based cooperative GCG measurement model, regulators may develop

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cooperative supervision standards that are more relevant to the advancement of the digital era. Furthermore, this

study may also serve as a foundation for formulating national cooperative digitalization policies, particularly

those related to information transparency, cooperative data security, cooperative website standardization, and the

strengthening of information technology-based supervisory systems.

CONCLUSION

This study aims to develop a website-based Good Corporate Governance (GCG) measurement model for

cooperatives through the modification of the Internet Based Corporate Governance (IBCG) framework and the

development of governance indicators adjusted to the characteristics of cooperatives in Indonesia. The findings

indicate that the cooperative governance measurement systems currently employed remain primarily focused on

cooperative health aspects and have not fully integrated the principles of digitalization, information transparency,

and internet-based accessibility. Therefore, this study produces a more comprehensive website-based

cooperative governance measurement model by integrating the aspects of stakeholders, transparency,

responsibility, accountability, and technical accessibility.

The study also finds that cooperative websites play an important role in improving the quality of cooperative

governance, particularly by supporting information disclosure, organisational supervision, communication with

members, and accountability in cooperative management. Furthermore, this study introduces several novel

indicators, including compliance with cooperative regulations, adherence to accounting and taxation standards,

external audits, and aspects of digital security and accessibility, as part of the website-based cooperative GCG

measurement model. The development of these indicators demonstrates that modern cooperative governance

does not solely depend on internal supervisory systems, but also on information technology readiness and the

quality of digital information management.

Overall, this study concludes that developing a website-based Good Corporate Governance measurement model

for cooperatives may serve as an alternative governance evaluation system better aligned with the advancement

of the digital era. The resulting model is expected to serve as a reference for cooperatives, regulators, and

governments in improving transparency, accountability, regulatory compliance, and the professionalism of

cooperative management in Indonesia. In addition, this study is expected to provide a foundation for future

research concerning the digitalisation of cooperative governance and the development of information

technology-based cooperative supervisory systems.

The final results of this study produce five principal aspects comprising 167 indicators, namely stakeholders,

transparency, responsibility, accountability, and technical accessibility, which collectively form a measurement

framework that is more adaptive, systematic, and relevant to technological developments. This model is expected

to serve as a reference for assessing and improving the quality of cooperative governance in a more objective

and standardised manner, while simultaneously fostering transparency, accountability, and public trust.

Furthermore, this study also provides theoretical and practical contributions to the development of digital-based

cooperative governance studies. It opens opportunities for further research to examine the implementation of

this model across various types of cooperatives in Indonesia.

Limitation

This study has several limitations that should be considered when interpreting the findings. First, this research

employed a qualitative approach with a limited number of informants; therefore, the findings primarily

emphasise an in-depth understanding of the development of a website-based Good Corporate Governance (GCG)

measurement model for cooperatives and cannot yet be generalised to all cooperatives in Indonesia. In addition,

the research informants were predominantly drawn from specific institutions and cooperatives, which may yield

differing perspectives if the study were conducted with cooperatives of different types or in other regions.

Second, the objects of this study were limited to cooperatives that already possessed official websites and

Cooperative Identification Numbers (Nomor Induk Koperasi/NIK). Consequently, this research does not yet

fully reflect the governance conditions of cooperatives that have not implemented digitalisation or still lack

adequate access to information technology. In reality, many cooperatives in Indonesia continue to face limitations

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in digital infrastructure, human resources, and website management, which may lead to variations in the

implementation of website-based governance across cooperatives.

Third, this study primarily focused on developing a conceptual model and governance measurement indicators

for website-based cooperatives and therefore did not conduct quantitative empirical testing of the proposed

model's effectiveness. This research also did not examine the relationships among the implementation of

website-based Good Corporate Governance, cooperative performance, member participation levels, or members’

trust in cooperatives. Therefore, future studies are expected to test the model using a broader sample empirically

and to apply quantitative or mixed-methods approaches, thereby examining the validity and reliability of the

proposed measurement model more comprehensively.

Future Research Agenda

Future studies are expected to empirically examine the website-based Good Corporate Governance (GCG)

measurement model for cooperatives developed in this research by employing quantitative or mixed-methods

approaches. Such empirical testing is important to evaluate the validity, reliability, and effectiveness of the

indicators used in the model. In addition, future research may expand the scope of research objects to include

various types of cooperatives and regions across Indonesia, thereby making the findings more representative.

Subsequent studies may also investigate the influence of website-based cooperative governance implementation

on cooperative performance, member participation, transparency, and fraud prevention. Furthermore, the

development of an index-based or digital scoring assessment system may serve as an alternative approach to

facilitate more measurable, standardised evaluations of cooperative governance quality.

On the other hand, future research may further develop studies concerning cooperative digitalisation by

incorporating broader information technology aspects, such as cooperative information systems, digital data

security, artificial intelligence, and cloud accounting. Such studies are expected to support the development of

modern cooperatives that are more transparent, accountable, and adaptive to technological advancements.

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Regulations and Laws Applied:

1. Minister of Cooperatives and SMEs Regulation No. 13 of 2015 concerning Accounting Guidelines for

Savings and Loan Businesses by Cooperatives

2. Minister of Cooperatives and SMEs Regulation No. 17 of 2015 concerning Cooperative Supervision

3. Minister of Cooperatives and SMEs Regulation No. 19 of 2015 concerning the Implementation of

Cooperative Members’ Meetings

4. Minister of Cooperatives and SMEs Regulation No. 20 of 2015 concerning the Implementation of

Cooperative Accountability

5. Minister of Cooperatives and SMEs Regulation No. 21 of 2015 concerning Cooperative Rating Systems

6. Minister of Cooperatives and SMEs Regulation No. 9 of 2018 concerning the Implementation and

Development of Cooperatives

7. Deputy Regulation No. 4 of 2018 concerning Criteria and Indicators for Cooperative Rating Assessments

8. Minister of Cooperatives and SMEs Regulation No. 9 of 2020 concerning Cooperative Supervision

9. Technical Guidelines of the Deputy for Cooperatives No. 15 of 2021 concerning Guidelines for

Cooperative Health Examination Working Papers (KKPKK)

APPENDIX

Appendix 1. Design of the IBCG Rating Measurement for Cooperatives

Description IBCG

Rating For

Cooperative

Explanation

Availa

ble

Unavaila

ble

STAKEHOLDER

Rights and

Obligations

1.1.

Statutes (Articles

of Association)

1.1.1.

The statutes are

fully available on

the cooperative’s

website page.

1.1.1.

The statutes are

provided in an

easily searchable

format.

1.1.

Ownership of

Savings

1.1.2.

Availability of

reports on

members’ savings

ownership.

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Description IBCG

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Cooperative

Explanation

1.1.2.

Availability of

reports on changes

in members’

savings ownership.

1.1.2.

Availability of

reports on the total

amount of

members’ savings

1.1.2.

Availability of

reports on the total

amount of

members’ savings

1.1.

Existence of a

Division/Agency

Responsible for

Public Relations

1.1.3.

Availability of

contact details and

operating hours.

1.1.3.

Identification of the

responsible officer.

1.1.3.

Availability of

information

regarding the

cooperative

secretary

TRANSPARENC

Core Ownership

Functions

2.1.

Management

Responsibilities

2.1.1.

Important decisions

must be made

during the Annual

General Meeting

(AGM).

2.1.1.

Availability of

reports indicating

that management is

responsible for

non-performing

loans and seeks to

minimize them

2.1.1.

Retention of

important

documents for three

to five years.

2.1.1.

Reports on the

analysis and

evaluation of

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Description IBCG

Rating For

Cooperative

Explanation

performance

outcomes uploaded

no later than prior

to the AGM

2.1.1.

Reports on the

analysis and

evaluation of work

plan outcomes

uploaded no later

than prior to the

AGM.

2.1.1.

Written reports on

the analysis and

evaluation of the

Cooperative

Revenue and

Expenditure

Budget Plan

(RABK) uploaded

no later than prior

to the AGM.

2.1.

Open Voting

Procedures

2.1.2.

Voting procedures

during the AGM.

2.1.2.

Procedures for

proxy or delegated

voting.

2.1.2.

Direct real-time

voting mechanisms.

2.1.2.

Internet-based

voting mechanisms.

2.1.

Announcement of

the Annual

General Meeting

(AGM)

2.1.3.

Guidelines

regarding the

minimum amount

of savings required

to conduct the

AGM.

2.1.3.

Indication of the

meeting date, time,

and venue.

2.1.3.

Disclosure of the

meeting agenda.

2.1.3.

Reports on the

outcomes of the

AGM.

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Description IBCG

Rating For

Cooperative

Explanation

2.1.3.

Deadline for

returning proxy

forms.

2.1.3.

Disclosure of

recent amendments

or proposals

presented during

the AGM.

2.1.3.

Procedures for

submitting

questions during

the AGM

2.1.3.

Availability of the

latest detailed

voting results.

2.1.3.

Archives of

previous meetings

with detailed voting

results

2.1.

Active

Participation in

the AGM

2.2.4.

Publication of

speeches by

cooperative

advisors.

2.2.4.

Publication of

speeches by

cooperative board

members

2.2.4.

Publication of

speeches by

cooperative

supervisors.

2.2.4.

Publication of

cooperative

member hearing

meetings.

2.2.4.

Publication of the

overall AGM

proceedings on the

internet.

Transparency

Procedures

2.2.

Digitalization of

Cooperative

Information

2.2.1.

Availability of

media facilities for

disseminating

information beyond

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Description IBCG

Rating For

Cooperative

Explanation

the cooperative

website alone.

2.2.1.

Availability of

cooperative

digitalization

applications linked

to the cooperative

2.2.

Distinction

Between Audited

and Unaudited

Information

2.2.2.

Availability of

warning notices

and emphasis

regarding audited

and unaudited data

information.

2.2.2.

Availability of

direct links to the

legal section of the

cooperative

website.

2.2.2.

Avoidance of

presenting audited

and unaudited data

on the same

webpage.

2.2.

Retention Period

for Cooperative

Report

Information on

the Website

2.2.3.

Three years.

2.2.3.

More than three

years

2.2.

Financial

Calendar

2.2.4.

Availability of a

financial calendar

on the cooperative

website.

2.2.

Auditors

2.2.5.

Information

regarding the

Internal Audit Unit.

2.2.5.

Information

regarding

contracted auditors.

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Description IBCG

Rating For

Cooperative

Explanation

2.2.5.

Disclosure of fees

for non-audit

services.

2.2.

Other Reports

2.2.6.

Environmental

reports.

2.2.6.

Reports on

charitable

activities.

2.2.6.

Certification

activity reports.

2.2.6.

Accounting reports.

2.2.6.

Cooperative

governance reports.

2.2.

Development

Plans

2.2.7.

Work plans

2.2.7.

General

cooperative

development plans

2.2.7.

Human resource

development plans.

Presentation of

Financial Data

2.3.

Financial Reports

2.3.1.

Availability of

complete, detailed,

and timely financial

reports.

2.3.1.

Information

regarding annual

reports and

cooperative

accounts.

2.3.1.

Applicable legal

regulations

governing annual

reports.

2.3.

Timing of

Financial Report

Announcements

2.3.2.

Availability of

monthly reports on

the cooperative

website.

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Description IBCG

Rating For

Cooperative

Explanation

2.3.2.

Availability of four-

monthly reports on

the cooperative

website.

2.3.2.

Availability of mid-

year reports on the

cooperative

website.

2.3.2.

Availability of

annual reports on

the cooperative

website.

2.3.

Scope of Capital

Participation

2.3.3.

Guidelines on

capital participation

determining

ownership in the

cooperative.

2.3.3.

Guidelines on

capital participation

not determining

ownership in the

cooperative.

RESPONSIBILIT

PROFESSIONAL

ISM

3.1.

Cooperative

Independence

3.1.1.

Cooperative

decisions must be

made

independently, as

confirmed by

supervisors and

board members.

3.1.1.

Separation between

Savings and Loan

Unit (USP)

management and

non-USP

management

3.1.1.

Separate

presentation of

USP financial

reports from non-

USP units

Cooperative

Ethics

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Description IBCG

Rating For

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Explanation

3.2.1.

Availability of a

cooperative code of

ethics

3.2.1.

Availability of

integrity pacts for

management and

supervisors,

including freedom

from conflicts of

interest.

3.2.1.

Availability of an

appropriate

remuneration

system for

management levels

FAIRNESS

(EQUAL

TREATMENT)

3.3.

Information

Disclosure

3.3.1.

Announcement of

savings bonuses

3.3.1.

Information

regarding capital

increases without

pre-emptive rights.

3.3.1.

Reports on material

transactions and

changes in business

activities

3.3.1.

Availability of an

English-language

version of the

website

3.3.1.

Accessibility and

compliance with

disability

discrimination

regulations (1995).

3.3.

Loan Procedures

and Annual

General Meetings

3.3.2.

Announcement of

equitable loan

procedures in

USP/KSP for all

members

3.3.2.

Equal interest rate

policies for

members’ voluntary

savings.

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Description IBCG

Rating For

Cooperative

Explanation

3.3.2.

AGM notifications

delivered to all

members through

the website.

3.3.2.

Comprehensive

distribution of

AGM outcome

reports.

3.3.2.

Announcement of

awards for

outstanding

members based on

years of service,

performance, and

contributions to

members’ welfare.

3.3.2.

Announcement of

sanctions for

underperforming

members based on

years of service,

performance, and

contributions to

members’ welfare.

ACCOUNTABILI

Organizational

and Management

Accountability

4.1.

Legal and

Managerial

Aspects

4.1.1.

Availability of legal

entity status

evidenced by the

deed of

establishment and

official legalization

decree.

4.1.1.

Availability of legal

entity status

evidenced by a

cooperative

registration

certificate number

4.1.1.

Availability of

reports on efforts to

increase member

participation in

capital accounting

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Description IBCG

Rating For

Cooperative

Explanation

through mandatory

savings.

4.1.1.

Availability of

reports on efforts to

increase member

transactions with

the cooperative

4.1.1.

Availability of job

descriptions and

job specifications

announcements.

4.1.1.

Availability of an

organizational

structure

4.1.1.

Availability of

guidelines ensuring

no dual positions or

vacant positions.

4.1.1.

Availability of

Standard Operating

Procedures (SOPs)

for cooperative

institutions.

4.1.1.

Availability of

Standard

Operational

Management

(SOM) for

cooperatives.

4.1.1.

Regular and timely

implementation of

AGMs in

accordance with

prevailing

regulations.

4.1.1.

Availability of

announcements

regarding ratified

AGM decisions.

4.1.1.

Availability of

collaborative

training programs

for board members

and supervisors.

4.1.1.

Availability of

competency-based

assessments

administered to

employees and

management.

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Description IBCG

Rating For

Cooperative

Explanation

4.1.1.

Availability of

formal education

programs for

administrators and

management.

4.1.1.

Announcement

regarding the

increase in the

number of

members during the

past year

4.1.1.

Announcement

regarding the

number of

members who

withdrew during

the past year.

4.1.1.

Availability of

information

regarding awards

received by the

cooperative during

the past three years

from both internal

and external

institutions.

Cooperative

Business

Accountability

4.2.

Business and

Inter-Business

Relations

4.2.1.

Availability of

reports on the

conformity

between business

licenses and

cooperative

business activities.

4.2.1.

Availability of

reports on business

involvement among

members and inter-

member

transactions

4.2.1.

Availability of

reports on business

relations between

the cooperative and

members as

providers of goods

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Description IBCG

Rating For

Cooperative

Explanation

and services, or

vice versa

4.2.1.

Availability of

reports on

increased turnover.

4.2.1.

Availability of

reports indicating

an increase in profit

percentages

compared with the

previous year

4.2.1.

Availability of

written cooperative

work plans for a

minimum period of

three years.

4.2.1.

Availability of at

least one-year work

plans as guidelines

for short-term

cooperative

operational

activities.

4.2.1.

Availability of

vision, mission,

objectives, and

work plans

4.2.1.

Availability of

information

regarding

operational

decisions

independently

made by managers

and confirmed by

management and

supervisors.

Financial

Accountability

4.3.

Finance and Audit

4.3.1.

Availability of

reports indicating

that equity capital

ratios exceed loan

capital ratios.

4.3.1.

Availability of

reports on the

cooperative’s

ability to provide

funds to meet due

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Description IBCG

Rating For

Cooperative

Explanation

obligations

(liquidity level).

4.3.1.

Availability of

reports indicating a

real increase in

mandatory savings

compared with

previous mandatory

savings.

4.3.1.

Availability of

reports regarding

the cooperative’s

solvency ratio,

measured through

asset-to-liability

percentages.

4.3.1.

Availability of

reports on Return

on Assets (ROA)

4.3.1.

Availability of

percentage

increases compared

with the previous

year.

4.3.1.

Completeness of

internal financial

report

presentations,

including balance

sheets, operating

results, cash flows,

changes in equity,

and notes to

financial

statements.

4.3.1.

Availability of

reports indicating

that the cooperative

has been audited by

a Public

Accounting Firm

(KAP).

4.3.1.

Availability of

audit opinion

reports issued by

the Public

Accounting Firm

(KAP).

4.3.1.

Availability of

reports regarding

the ratio between

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Description IBCG

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Cooperative

Explanation

operating income

and operating

expenses.

Capitalization

4.4.

Cooperative

Capital Growth

Rate

4.4.1.

Availability of

information

indicating that

equity growth is

equal to or greater

than asset growth,

based on balance

sheet data.

4.4.1.

Availability of

information

indicating that

equity growth

originating from

members is at least

10% higher than

the previous year,

based on balance

sheet data.

4.4.1.

Availability of

reports indicating

reserve allocations

from SHU equal to

or greater than one-

quarter of the

current year’s

SHU, and

cooperative deposit

savings increasing

by 10% compared

with the previous

year.

4.4.1.

Availability of

information

indicating that

fixed asset

investments and

office expansion

funds are financed

through equity

capital, as reflected

in reports on

sources and uses of

funds

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Description IBCG

Rating For

Cooperative

Explanation

Productive Asset

Quality

4.5.

Loans and Credit

4.5.1.

Availability of

reports indicating

that at least 90% of

loans are classified

as current,

evidenced by loan

repayment reports.

4.5.1.

Availability of

information

indicating that each

secured loan is

backed by

collateral equal to

or greater than the

value of the loan,

except for

unsecured loan

facilities.

4.5.1.

Availability of

information

indicating that

reserve funds for

loan write-offs are

equal to or greater

than annual non-

performing loans,

evidenced by loan

collectability and

reserve reports.

4.5.1.

Availability of

information

indicating that at

least one-third of

the previous year’s

problematic loans

were successfully

collected,

evidenced by

annual bad debt

collection reports.

4.5.1.

Availability of

information

indicating that the

cooperative

effectively

implements loan

procedures, verified

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Description IBCG

Rating For

Cooperative

Explanation

through cross-

checking loan

procedures with

SOPs, including

BMPP.

4.5.1.

Availability of

information

indicating that

KSP/USP

cooperatives apply

transparent loan

procedures.

4.5.1.

Availability of

information

indicating that

lending decisions

and/or fund

placements are

conducted by

committees,

supported by

meeting minutes

4.5.1.

Availability of

information

indicating that the

cooperative

analyzes, reviews,

and binds

collateral,

evidenced through

collateral

documentation

and/or collateral

submission and

credit limit

assessments.

Liquidity

4.6.

Control Systems

and Management

Information

Systems

4.6.1.

Availability of

information

indicating that the

cooperative has

written liquidity

control policies

evidenced by

written business

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Description IBCG

Rating For

Cooperative

Explanation

planning

documents.

4.6.1.

Availability of

information

indicating that the

cooperative has

effective

administrative

guidelines for

monitoring due

obligations,

evidenced by

written documents.

4.6.1.

Availability of

information

indicating that

adequate

management

information

systems are

available for

liquidity

monitoring,

evidenced through

reporting systems,

savings collection,

and lending

documents.

Independence and

Growth

4.7.

Profitability and

Cooperative

Independence

4.7.1.

Availability of

reports indicating

that asset

profitability ratios

have increased over

the past two years.

4.7.1.

Availability of

reports indicating

that equity

profitability ratios

have increased over

the past two years.

4.7.1.

Availability of

reports indicating

that operational

service

independence ratios

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Description IBCG

Rating For

Cooperative

Explanation

have increased over

the past two years.

4.7.

Gross

Participation and

Cooperative SHU

4.7.2.

Availability of

reports indicating

that gross

participation ratios

have increased over

the past two years.

4.7.2.

Availability of

reports on SHU

profits relative to

principal savings

plus mandatory

savings.

4.7.2.

Availability of

membership

declaration letters

based on the

principle of

voluntarism.

INSTITUTIONAL

ASPECTS

4.8.

Security Systems

and Cooperative

Planning

4.8.1.

The cooperative

possesses an

effective security

system for all

important

documents, such as

encryption systems

for document

access.

4.8.1.

Availability of

Strategic Plans

(RENSTRA),

including vision,

mission, objectives,

targets, programs,

and annual

activities

4.8.1.

Availability of

reports on the

Revenue and

Expenditure

Budget Plan

(RAPBK).

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Description IBCG

Rating For

Cooperative

Explanation

4.8.1.

Availability of

work evaluation

reports concerning

the Cooperative

Revenue and

Expenditure

Budget Plan

(RAPBK).

4.8.1.

Availability of

information

indicating that the

cooperative

collaborates with

external parties

and/or other

cooperatives to

improve

professionalism.

4.8.1.

Availability of

information

indicating that the

cooperative

engages in business

partnerships with

other cooperatives

or external parties

Cooperative

Compliance with

Cooperative

Regulations

4.9.

Taxation and

Certification

4.9.1.

Availability of

information

indicating that

board members,

supervisors, and

cooperative

administrators

possess Taxpayer

Identification

Numbers (NPWP).

4.9.1.

Availability of

information

regarding

competency

certification from

Cooperative

Certification

Institutions (LSP)

for board members

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Description IBCG

Rating For

Cooperative

Explanation

4.9.1.

Availability of

information

indicating that

USP/KSP units

possess special

licenses issued by

relevant authorities

4.9.1.

Availability of

information

indicating that the

cooperative has

submitted annual

tax returns (SPT)

on time over the

past two years

4.9.1.

Availability of

information

indicating that

financial statements

submitted in tax

reports are audited

by Public

Accounting Firms

(KAP).

4.9.1.

Availability of

information

indicating that the

cooperative

properly calculates,

deposits, and

reports Value

Added Tax (VAT),

Income Tax (PPh),

and other tax

obligations.

Cooperative

Compliance with

Indonesian

Financial

Accounting

Standards

4.10

Reports

4.10.

1.1

Cooperative

financial reports are

prepared in

accordance with

SAK ETAP

standards.

4.10.

1.2

Financial reports

for USP units are

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Description IBCG

Rating For

Cooperative

Explanation

prepared separately

from non-USP

units.

4.10.

1.3

Consolidated

financial statements

for USP and non-

USP units are

available

4.10.

1.4

Availability of

information

indicating that

financial statements

are prepared based

on accounting

information

systems.

Benefits of

Cooperatives for

Members

4.11

SHU and

Members’

Businesses

4.11.1

Availability of

reports indicating

annual increases in

SHU surplus

received by each

member.

4.11.1

Availability of

reports indicating

members’

businesses

promoted from

micro to small

enterprises and

from small to

medium enterprises

4.11.1

Availability of

goods/services

offered at lower

prices than

competitors.

Benefits of

Cooperatives for

Society

4.12

Employment and

Charitable

Activities

4.12.

1.1

Availability of

employees

recruited from the

Page 1946

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INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue V, May 2026

Description IBCG

Rating For

Cooperative

Explanation

local community

surrounding the

cooperative

4.12.

1.2

Availability of

cooperative

donations and

financial support

for religious, social,

community, health,

and educational

activities in the

surrounding

environment.

TECHNICAL

ACCESSIBILITY

Website Browsers

5.1.1.

Browser

compatibility

(Explorer, Opera,

Firefox, Chrome).

5.1.1.

Compliance with

W3 Consortium

standards.

5.1.1.

Printable webpage

features

5.1.1.

Website security

Functions/Usabilit

5.2.1.

Availability of a

sitemap

5.2.1.

Availability of a

search engine

feature.

5.2.1.

Personalization

features (login

requirements or

otherwise).

Annual Reports

and Use of

Account Data

5.2.1.

Availability of data

for instant review

in searchable

formats.

5.2.1.

Financial data

presented in

Microsoft Excel

format.

Page 1947

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INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue V, May 2026

Description IBCG

Rating For

Cooperative

Explanation

5.2.1.

Availability of

financial data in

machine-readable

formats such as

XBRL.

5.2.1.

Wistleblowing

system