ANALYSIS OF MEASUREMENT INDICATORS OF MEMBERS’ COOPERATIVE LITERACY IN ISLAMIC SAVINGS-LOAN AND FINANCING COOPERATIVES

Purpose of the study: This study aims to investigate the measurement indicators used to measure the literacy rate for several Islamic cooperatives in D.I. Yogyakarta and to formulate an instrument to measure the cooperative literacy level of members and boards. Methodology: The purposive sampling method was applied to choose 14 Islamic cooperatives as samples. Data were collected by distributing questionnaires to members and boards. The measurement of literacy utilises six indicators, namely institutional identity (JDL), duties and obligations of the financial institutions (TDK), organisational institutions (KL), the role of members (PA), Sharia deposit mechanism (MS), and Sharia financing mechanism (MP). The data was processed using the partial least square-structural equation modelling (PLS-SEM) analysis. Main Findings: The results show that all indicators had significant influences on the level of cooperative literacy, which means that they can be used as instruments to measure the level of cooperative literacy. It is also revealed that although in general, the Islamic cooperative members and boards have a quite good understanding of cooperative literacy, but only in terms of attributes of financing mechanisms and sharia deposit. Applications of this study: This study is useful for the development of Islamic cooperatives in D.I. Yogyakarta in particular and Indonesia in general, because of the high level of understanding of members about all aspects of cooperatives can increase their activities in the institution. Novelty/Originality of this study: There are not many kinds of literature available on cooperative literacy. Some of them only focus on one institution. In contrast, this research involves several Islamic cooperatives to measure the level of cooperative literacy that could be applied in every cooperative in Indonesia.