Collective Mechanisms and Bargaining Power: Cooperatives, ‘Julo-julo’, and Islamic Microfinance among Minangkabau Women

Afdhal Afdhal; Afikah Yandra

Authors

Afdhal Afdhal University of Pattimura, Indonesia
Afikah Yandra Universitas Islam Negeri Mahmud Yunus Batusangkar, Indonesia

Keywords:

Bargaining Power, Cooperatives, Islamic Microfinance, Julo-Julo, Matrilineal Society

Abstract

This study examines the effectiveness of three collective financial mechanisms, formal cooperatives, julo-julo (a rotating savings and credit association rooted in local wisdom), and Islamic microfinance, in strengthening the economic bargaining power of Minangkabau women in the highland region of Tanah Datar, West Sumatra. The analysis focuses on two nagari (villages) with distinct market cycles: Balai Tangah, which hosts a daily market peaking on Thursdays, and Pangian, with a weekly market every Sunday. These market rhythms are assumed to influence women’s trade strategies, seasonal cash flow, and capital access needs as both traders and buyers. Using a comparative inter-village design, the study employs propensity score weighting to control for differences in participants’ characteristics across financial schemes, combined with social network analysis to map actors’ positions within the market supply chain. Qualitative approaches through in-depth interviews and focus group discussions involved 30 female market participants, cooperative leaders, julo-julo organizers, Islamic microfinance managers, customary leaders, and market heads. Findings reveal that in daily market contexts, cooperatives maintain working capital stability and reduce supply risks, while julo-julo is more effective in weekly markets for mitigating seasonal cash flow fluctuations. Islamic microfinance is primarily used for medium-term investments. Participation in collective schemes enhances women’s bargaining power, particularly when occupying central positions in local supply networks. The novelty lies in integrating cross-scheme comparative analysis with market-cycle factors, combining propensity score weighting and social network analysis to link economic impacts with social network configurations, offering context-specific recommendations for women’s economic empowerment.

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