A Success Cooperative Analysis: A Comparative Case Study of Taruko and Karatau Gapoktan in Agam Regency, West Sumatra Province

Abstract

The transformation of the Association of Farmer Groups (Gapoktan) into Farmers' Economic Institutions (KEP) is a strategic step toward building collective agribusiness strength. This study adopts a comparative case study design to examine the institutional transformation and success factors of two distinct Gapoktan in Agam Regency, West Sumatra: Gapoktan Taruko (Matur Subdistrict) and Gapoktan Karatau (Sungai Pua Subdistrict). Using a qualitative deductive framework, data were gathered through semi-structured interviews, Focus Group Discussions (FGDs), and document triangulation involving 18 key informants, including group executives, members (borrowers and fertilizer consumers), and agricultural extension agents. Results show that Gapoktan Taruko successfully operates its Agribusiness Microfinance Institution (LKMA) as a growing savings-and-loan entity. This perceived success is driven by high member participation, functional reward-and-punishment systems, and strategic business diversification. Conversely, LKMA Karatau ceased its savings-and-loan activities shortly after inception due to repayment challenges and currently functions solely as a subsidized fertilizer distributor. The comparative analysis highlights that while both institutions share basic regulatory and organizational frameworks, the critical determinants of successful KEP development reside in high member participation, strict accountability mechanisms, and collective capital reinvestment strategies.