KH friends are certainly familiar with the word cooperative, right? Cooperative which comes from English
co-operation
or meaning cooperation, is understood as a legal entity established based on the principle of kinship and the principle of populist economy.
Then, do KH friends already know what types of cooperatives exist in Indonesia and their examples? Let’s see the following explanation!
What is a cooperative?
Now before knowing more about the types of cooperatives and their examples, it’s good for KH friends to first understand the meaning of the cooperative itself.
Cooperative is a business entity consisting of members of individuals or legal entities by basing all activities carried out on existing cooperative principles, namely the people’s economy. Cooperatives can also be referred to as an economic organization that is owned and operated by the people who founded it for the common interest. So that the cooperative was established for the welfare of its members.
The establishment of cooperatives itself is regulated in Article 1 of the Minister of Cooperatives and SMEs Regulation No. 9 of 2018 which contains the organization and guidance of cooperatives. This article regulates the requirements for establishing cooperatives in Indonesia.
Like other business entities, cooperatives also need capital to start running all business activities in it. Cooperative capital can come from its own capital such as mandatory savings, principal savings, and reserve funds and grants. In addition, cooperative capital can also come from loan capital, be it loans from members and prospective members, loans from other cooperatives, or loans from banks and other financial institutions.
Types of Cooperatives and Examples
In running their business, there are various types of cooperatives in Indonesia. The types of cooperatives are grouped into three groups based on the type of business, membership, and level.
Types of cooperatives based on their business:
- Production Cooperative
A production cooperative is a type of cooperative that conducts business in the field of production or producing goods. This type of cooperative usually consists of micro and medium entrepreneurs who have activities to procure raw materials and assist their members in solving business problems.
Examples of the type of production cooperatives include farmer cooperatives and fishermen cooperatives. Where this type of cooperative will help prepare the raw materials needed by its members and market the results.
- Consumption Cooperative
This type of cooperative is a cooperative that has activities that provide all the needs of members in the form of goods. Goods provided are in the form of basic daily needs such as rice, oil, eggs, flour, sugar, and others. For cooperative members who buy, they will receive a more favorable price compared to those who are not cooperative members.
- Savings and Loan Cooperative
The next type of cooperative is a savings and loan cooperative. This type of cooperative provides money loans and also money storage. Savings and loan cooperatives are widely known and followed by many people because by becoming a member, they can get money loans easily.
Although at first glance the way it works is similar to banks, savings and loan cooperatives provide lower loan interest when compared to banks. Payment of loan funds in this cooperative can also be made according to mutual agreement and the interest earned will be distributed to all members with a profit-sharing system.
- Multipurpose Cooperative
This type of cooperative has a wide range of businesses. It can be said that this type of cooperative is a combination of the previous types of cooperatives. A business cooperative is more flexible, so it is one of the right solutions to improve the welfare of its members to the maximum.
All-round cooperatives include economic activities in more than one line of business, such as credit, supply and distribution of production facilities and daily necessities, to processing and marketing of products. Examples of this type of cooperative are transportation cooperatives and electric cooperatives.
Types of Cooperatives Based on Membership:
- Public Employee Cooperative
The first type of cooperative based on its membership is a civil servant cooperative. As the name suggests, this type of cooperative consists of civil servants, both central and regional civil servants. This cooperative aims to prosper its members and civil servants connected to the cooperative.
- Market Cooperative
A market cooperative is a cooperative whose members are market traders. The purpose of this cooperative is to prosper the market traders in order to have loan funds as capital for the traders.
- Village Unit Cooperative
Village Unit Cooperatives (KUD) are cooperatives with members from rural communities. These cooperatives usually run businesses in the economic sector related to agriculture or fisheries.
- School Cooperative
A school cooperative is a cooperative that consists of all school members, such as teachers, employees, and students. This type of cooperative will provide school equipment at a cheaper price so that the needs of students and teachers can be met.
Types of Cooperatives by Level:
- Primary Cooperative
Primary cooperatives are cooperatives established by individuals. This type of cooperative usually has at least 20 members. Primary cooperatives are not collections of capital, but rather collections of people with common economic interests. The working area of a primary cooperative usually covers a neighborhood, ward, or village.
If you want to establish a primary type cooperative, you need to apply for a cooperative establishment deed either in writing or electronically submitted to the Minister of Cooperatives and SMEs by attaching several documents such as:
- Two copies of the deed of establishment of the cooperative with stamp duty
- Proof of initial capital deposit
- Minutes of the cooperative establishment meeting
- Initial plan of cooperative activities established
- Secondary Cooperative
The last type of cooperative is a secondary cooperative. A secondary cooperative is a type of cooperative that consists of a combination of primary cooperative bodies and has a wider scope of work areas than primary cooperatives. The requirements for establishing a secondary cooperative are actually the same as a primary cooperative, but require additional documents such as:
- Results of the minutes of the cooperative establishment meeting
- Decision on the legal entity validation of secondary and/or primary cooperatives
- Active TIN for all prospective cooperative and/or primary members
After submitting the deed in establishing the cooperative and obtaining scores related to the articles of association and administrative requirements, the Minister of Cooperatives and SMEs will then issue two letter options, namely a Decree for acceptance or rejection.
After knowing the types of cooperatives and their examples, you need to know what are the stages and procedures for establishing a cooperative in Indonesia. The stages and procedures in establishing a cooperative include the following:
- Planning to establish a cooperative
- Submission of all plans and consultation to central and regional agencies
- Cooperative establishment meeting by all prospective members
- Verify the name of the cooperative to be established
- Submission of ratification of cooperative establishment deed
- Verification of application documents for cooperative establishment
- Mechanism in the Cooperative Legal Entity Service Administration System (SISMINBHKOP)
- Authorization to establish a cooperative
KH Contact
That is an explanation of the definition and types of cooperatives in Indonesia and their examples. For KH friends who want to establish a cooperative, don’t forget to fulfill and carry out the existing stages and procedures, yes!
Or KH friends are still confused about how the procedure for establishing a cooperative? Let’s immediately contact Kontrak Hukum by visiting the page https://kontrakhukum.com/pendirian-badan/ We are ready to help take care of all the licenses and legalities of your cooperative establishment permit with ease.
If you want to consult or have questions about cooperatives, savings and loan cooperatives, or other legal issues, KH friends can also contact Kontak Hukum through the following link Tanya KH or through Instagram social media @kontrakhukum. Kontrak Hukum is ready to help and offer solutions to your business problems.
