The Originator of Cooperatives in Indonesia

By: John Obed Mordekhai, 1606899176

Cooperatives is one of the types of firms that can be found all around the world.
According to businessdictionary.com cooperatives by definition is “Firm owned,
controlled, and operated by a group of users for their own benefit. Each member
contributes equity capital, and shares in the control of the firm on the basis of one-
member, one-vote principle (and not in proportion to his or her equity contribution).”.
The first cooperative in the world was found by the Rochdale pioneers in England.
Their main objective was to help the poor. This idea was a success and it has spread
around the world.

The person who is the originator of cooperatives in Indonesia is Raden Arya

Wiraatmadja. He from a bloodline of loyalty and is a Patih in Purwokerto. He started
this by forming a credit union in the year 1896, with the purpose of helping the
Indonesian (Pribumi) from the grasp of debt.

Raden Aria Wiriatmadja was born from the couple, Raden Ngabehi Dipadiwirja
and the daughter of Mas Ngabehi Kertajaya in Adireja, Banyumas August 1893. At the
age of 21, Raden Aria Wiriatmadja worked as a Dutch Journalist Chief in Banjarnegara,
however he only maintained his position for 2 years. Then Raden Aria Wiriatmadja
became Police Mantri at Bawang, Singamerta District, Banjarnegara for 9 years.

On 1863, Aria was appointed as Vice Wedana Batur with a length of service of
3 years. Then his career skyrocket when he became Wedana Definit Batur,
Banjarnegara August 3, 1866, before finally moved to his place of birth to become a
Wedana Adirerja, however a few years later, Aria received a promotion to a more
important position that is he was appointed to become Patih in Purwokerto.

In the year 1896, Aria establish a bank for the government employees (priyayi).
He is motivated by his desire to help the employees that keeps on suffering due to high
borrowing interest. Aria copied the credit union system in German.
 His dream was then continued by De Wolffvan Westerrode, an assistant who is a
resident of Dutch. De Wolffvan Westerrode on his time off succeeded in visiting
German and recommended to change the existing Savings Relief Bank into Relief,
Savings, and Farming Bank. Other than government employee, the farmers can also be
aided because they are suffering from the pressure from the paddy buyers. He also
suggests changing the bank into a cooperative.

Other than that, De Wolffvan Westerrode build village granaries that

recommend the farmers to store their yields and give help in the form of lending paddy
at famine season, however the Dutch Government was in opposition. Relief, Savings,
and Farming Bank did not become a cooperative, but the Dutch Government build new
village granaries, village banks, mortgage houses, and Centrale Kas which then became
Bank Rakyat Indonesia (BRI). Everything is a government’s business entity and led by
the government officials.

Now everything is recorded in a museum BRI located in the intersection of

Jendral Sudirman road and Wirjaatmadja road or Bank BRI road. Most people already
forgot about Raden Arya Wiraatmadja, however that would not change the fact that he
is the originator of cooperatives in Indonesia.

Reference:

A. S. (2016, July 12). Mengenal Arja Wiraatmadja Pencetus Koperasi dari Purwokerto (W.

N., Ed.). Retrieved February 12, 2018, from

https://m.timesindonesia.co.id/read/128490/20160712/093712/mengenal-arja-

wiraatmadja-pencetus-koperasi-dari-purwokerto/#!

Uieks, T. (2015, November 22). Raden Aria Wiraatmadja: Pahlawan Perbankan yang

Terlupakan. Retrieved February 12, 2018, from

https://www.kompasiana.com/taufikuieks/raden-aria-wiraatmadja-pahlawan-perbankan-

yang-terlupakan_5651c4fe3eafbdbb08d6811f