Development of a Cooperative Institutional Model in Reducing Poverty in Coastal Communities at KUD Mino Saroyo, Cilacap Regency, Indonesia

This study aims to analyze how the Village Unit Cooperative (KUD) Mino Saroyo in Cilacap Regency, Central Java Province in developing strong institutions to provide solutions for poverty reduction in the Coastal Area of Cilacap Regency. This research uses qualitative research methods, this research challenge Scoot's institutional theory (2008) which reveals that there are three pillars in institutional capacity building, including coastal community institutions, namely the Regulative pillar, Normative pillar and Cultural-Cognitive pillar. The results showed that KUD Mino Saroyo is an independent cooperative with many business units with turnover reaching tens of billions. KUD Mino Saroyo is an example of a cooperative with innovation in managing business units to successfully obtain large profits and help reduce poverty in the coastal region of Cilacap. Suggestions of this study, required the management of business units by personal competent per the field of business units. The theoretical implication is that there needs to be an additional competency factor in Merilee S. Grindle's theory. In determining the leader, the Normative aspect in Scott's theory needs to be differentiated in a society that still tends to choose leaders based on image and not based on competence. The election of the highest leader remains by the voting community per the values and norms believed by the community, but for the lower leaders who need special competence, for example to lead a cooperative business unit. The values and norms are not submitted to the voting community, but are determined by a competent and authorized institution, which is then appointed and appointed by the highest leader.