Answering Cooperatives’ Challenge in Industry 4.0 Era – The challenge which cooperatives face in this era of the fourth industrial revolution is how to keep playing a key role in empowering the nation’s economy. The rapid flow of global emerging markets afforded by the implementation of technology has inevitably forced cooperatives to adaptively respond to the ongoing changes unless they want to just be “gone with the wind”.

Although cooperatives themselves have been through ups and downs in their development, it seems imperative for cooperatives to keep up with the radical changes brought by the Industrial Revolution 4.0 in order to strive.

As a benchmark, the performance of cooperatives in Scandinavian and European countries has advanced rapidly and even become promising business entities. To date, several banks in Europe are owned by cooperatives, and one of them has grown into one of the largest banks in France (Credit Agricole Bank). In the Netherlands, the fore-runner of Rabobank, a world-class bank, is an agricultural cooperative bank established in 1895, which started operations from lending credit to local farmers from the savings of each member of the farmer cooperative.

In this Industrial Revolution 4.0 era, technology has been speeding up industry growth in emerging markets. Many developing countries have successfully released their economic power, and given the massive number of businesses running, MSMEs have constituted a significant sector that contributes to the economic growth of developing countries.

Undeniably, in global emerging markets, MSMEs hold an important role in accelerating a nation’s economy. Specifically, with more than 400 million existing businesses, Indonesia’s MSMEs contribute 60.3% of revenue to the Gross Domestic Product (GDP) and 97% of the national labor. However, despite their significant contribution, problems which they encounter persist.

Aiming to support the industrial sector by making the best use of blockchain, Tokoin carries the mission to help MSMEs which often find it difficult to grow their business. Tokoin brings together the convenient ‘meet-the-needs’ concept between Tokoin’s users and its partners, such as financial institutions, insurance companies, and property business.

As a platform which optimizes blockchain technology to establish a valid identity for and reputation of MSMEs, Tokoin issues a digital identity and digital ledger to build MSMEs’ credit scoring services in order to increase their economic scale. This technology has a similar function to a bank account for its transactional recording.

The idea is to bring prosperity to MSMEs. In this modern business ecosystem, Tokoin allows MSMEs to have financial records similar to those of the banks. Every transaction that is initiated on Tokoin’s platform is accurately recorded with timestamps.

Therefore, Tokoin will facilitate both cooperatives and the MSME sector in meeting their needs. By means of Tokoin’s blockchain platform, MSMEs will be supported in solving their problem of accessing credit, while cooperatives will be assisted with a trusted platform to build a digital ecosystem equipped with effective market solutions. 

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Author: Tokoin Official

TOKOIN is a platform that establishes the identity of MSMEs as an acceptable reputation in the business ecosystem. TOKOIN presents a better and modern business ecosystem that offers valuable partnerships to address inclusive growth. As a platform, TOKOIN captures and processes business information from the users as a valuable asset, which, in our ecosystem, translates to the trusted reputation of the MSMEs as our users to access previously inaccessible financial business services from providers which act as our partners. Therefore, TOKOIN links the business and financial sectors to launch a scheme of financial inclusion. The partnerships formed in TOKOIN will subsequently contribute to the national economic growth.