Tuesday 6 September 2016

Jimpitan System in Indonesia: Woman, Poverty and Welfare

Each country has a variety of internal and external issues that could destabilize the country. The main problems focus on three sectors: economic, political and law. However, a problem that requires serious attention is an economic sector with the problem of poverty as it can lower the index of the country's economy.

One of the factors that make the Indonesian population living below the poverty line is a lower level of education than lace impact on the productive sector which resulted in an increase in the number of unemployed.

Indonesia is a densely populated country with a population of 237,641,326 million and increase to 250 million in 2015, therefore, it can be ensured that the country's income will be unbalance due to the increase of population.

Then, it is compounded by the high burden of families in financing the economy as well as several other non-technical factors, one of them is natural disaster such as landslides, earthquakes and floods which is claimed to snatch the property of poor people in Indonesia.

Although Indonesia is said to be a middle-income country (Middle Income Trap) where the conditions for economic development may be slowed or stopped at certain points, it does not mean the problem of poverty is fully the responsibility of the central government. But, it needs cooperation with private institutions or other non-structural supporting parties, where the target of poverty rate fell to 10% in 2014.

Some programs are conducted by the government to focus on the direction of economic development of Indonesia is to maintain price stability of basic commodities, to push economic growth, which stands for the poor people, to enhance well as expand the scope of community-driven development, to improve the access of the poor to basic services and to build social protection systems for society. In order to strengthen the program, government does technical guidance or mentoring and training in financial management of micro-finance institutions (Mis).

Cooperative business is considered as a productive sector that could boost economic growth in the country as indicated by the increase in GDP (Gross Domestic Product). Can't be denied that women also contribute to the economic life, because women have a central role in helping to realize the welfare of the family. 

Approximately 8506 women's cooperatives that have been approved by a legal entity with a mission to eradicate poverty together, but because Indonesia is facing the capitalist economic system more priority to the acquisition of income based on the ownership of capital, as a result of capital owners are getting richer and the poor poorer. While the formation of the cooperative was formed on the basis of concern that are not contrary to free competition, but cooperation based on solidarity, justice, honesty. It is not a conflict of interest are raised, but bring mutual interest to the ideal society prosperous, fair and equitable.

Thus, the idea of the cooperative is expected to bring a renewal of the world economy in order to avoid social lameness. Results of women's cooperative assessment in 2011 showed a positive effect. But after a grant from the government and also the supervision of the government completed, the cooperative process is stopped too. Because the cooperative is formed not on the basis of the initial objectives, but is formed because of the assistance.

Indonesia is a rich country as well as its culture and positive essence in it that can be applied in solving the economic problem. As a follow-up to the establishment of the women's cooperative program to improve work efficiency and meeting the needs of society, therefore, it needs "Jimpitan System" as a solution to the sustainability of women's cooperatives as well as to lift the local wisdom of East Java.

Jimpitan is derived from the Javanese language. Jimpitan or pinches that take in small amounts, "jimpitan" is collected then will be transferred to the funding of social activities for the residents and can contribute to the construction of mosques, schools, and donations village infrastructure.

The expectation from this system, women's cooperative is able to provide the foundation of the relationship between members, although the government no longer participated in providing assistance either donations or assistance, but cooperative women can continue to contribute to improving the economy around.

As the result, it will be returned to the community also indicated that with the increase of income per capita, and if the result of this continue to be developed, the initial target to enter the upper middle income countries can be realized and become an independent state by optimizing local knowledge.

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