understanding Cooperatives

According to Law No. Indonesia country. 25/1992, the cooperative is a business entity
composed of individuals or legal entities with the bases Cooperative
activities based on the principle of cooperation as well as a popular economic movement
based on the principle of the family (Sitio and Tamba, 2001). cooperative as
the social character of economic organization as a joint venture based on the principles
kinship and mutual cooperation (Widiyanti, 94). Ropke declare the meaning of the cooperative
viewed from the perspective of economic organization is an organization whose business
owner / members are also major customers of the company. Criteria will be the cooperative identity theorem / principle of identity that distinguishes cooperative business unit of other business units (Hendar and Kusnadi, 1999).

Elements contained in the cooperative according to the International Labour Organization (Sitio and Tamba, 2001) is:

a. gatherings of people,

b. incorporation of such persons based on volunteerism,

c. there are economic objectives to be achieved,

d. cooperatives formed is a business organization (corporation) who supervised and controlled democratically,

e. there is a fair contribution towards the required capital,

f. members of the cooperative receives the risks and benefits in a balanced manner.

that is cooperative