Coorperatives are business organization owned and operated 3.

Padi dan kapas =

by individuals for their common interests Mengedepankan kesejahteraan anggota dan luar
Coorperatives base their activities on the rinciples of people anggota
economics movement 4. Timbangan = symbol of law balanced berlaku adil
all coorperative member must be fair and balance
Characteristics : Business organization ,Operated by one with chain and paddly-cotton
person ,Based on kindship , The principles activities of the
5. Bintang & Perisai = Believe with the god that
people’s economic movement
help our coorperative
Entities : UU No. 25 Tahun 1992 , Internasional activities
Coorporative Alliance ( ICA ) 6. Pohon beringin = symbol as a mountain
kemakmuran cooperative awlays life long life
Type Coorperative based member activities
7. Kooperasi Indonesia = identity of our intregrity,
1. Consumer Coorperative we have own coorperative in Indonesia
2. Marketing Coorperative 8. Warna Merah Putih = The national character of
Indonesia
3. Productive Coorperative
4. Coorperative Service Meaning New of the emblem/Symbol
5. Selling and buying’
1. Form of flower meaning Indonesian coorperative
6. Saving and loan must develop inovatif beautiful and hopefully
7. Multipurpose Coorperative based on function coorperative more good in Indonesia.
1. Purchasing Coorperative 2. Form of a pitcure of four point of view
2. Sales/Marketing Coorperative 3. Channel aspiration of coorperative member
3. Service Coorperative
General overview of MSMEs
4. Single purpose Coorperative
5. Multi purpose Coorperative Based on UU nomor 20 tahun 2008

Type based on area of work 1. Livelyhood activities = small and medium

business untuk bertahan hidup
1.Primary Coorperative 2. Micro enterprise = already has usaha but they
2.Secondary Coorperative 3. Central don/\’t have ability kemampuan berwirausaha
Coorperative based on membership status 3. Small dynamic enterprise = craftsman but does
1. Producer Coorperative not yet an entrepreneural natural
2. Consumer Coorperative 4. Fast moving enterprise = already has an
enterpreneural spritit and will carry out the
3. the position of members in a coorperative can be in transformation into large business
either status or both of them Legal basis for Coorperatives
(industry/company)
in Indonesia
UU No. 25 tahun 1192 → UU No. 17 tahun 2012 → UU
HISTORYOF GROWTH, DEVELOPMENT
No. 25 tahun 1992
ANDSTRUGGLE OFCOOPERATIVES
Its change because there are some point that not align with
UUD 1945. Change of the emblem/logo of indonesian A. Development of Cooperatives Globally
coorprative movement. Baseed on surat keputusan dewan Modern Cooperatives in the Late 18th Century. Modern
koperasi nomor SKEP/03/DEKOPIN-E/2015 and cooperatives began to develop in the late 18th century,
Peraturan particularly during the Industrial Revolution. These
Menteri Koperasi dan usaha Kecil dan Menengah Republik cooperatives were based on principles such as open and
IndonesiaNomor 01/Per/M.UMKM/2015 voluntary membership, democratic control, and distribution
of surplus based on member services.
Principles of the Rochdale Cooperative. These principles
serve as the foundation for various cooperatives worldwide.
They include:
Meaning Old of the emblem/symbol 1. Open and Voluntary Membership : Members can
join and leave voluntarily.
1. Gerigi roda/ gigi roda = hard effort 2. Democratic Control : The cooperative is managed
continously democratically.
2. Rantai = strong of the family unity and 3. Distribution of Surplus Based on Member
friendship Services : Surplus is distributed based on the
services provided by members.
 4. Sales at Market Prices : Sales are conducted at 2. Kongres Koperasi I (1953). The first
prevailing market prices. congress after independence, which
5. Cash Transactions : Transactions are conducted in designated Bung Hatta as the Father of
cash. Indonesian Cooperatives.
6. No Discrimination : There is no discrimination 3. Kongres Koperasi III (1956). A congress
based on race, ethnicity, religion, or politics. that discussed various aspects of
7. Sale of Genuine Goods : Genuine, undamaged, and cooperative life in Indonesia and its
non-counterfeit goods are sold. relationship with the International
8. Continuous Education for Members : Members Cooperative Alliance (ICA).
receive continuous education. C. Development of Cooperatives After Independence
Urban Credit Cooperatives. These urban credit - Recognition in the UUD 1945 Constitution.
cooperatives form the basic pillars of cooperatives: Cooperatives were recognized as an essential part of the
1. Principle of Self-Help. Members help themselves. economy based on kinship principles.
2. Self-Management by Members. Members manage - Law No. 431 PRIYAYI (1947). A law that governed
their own affairs. cooperatives and acknowledged their role in economic
3. Self-Monitoring. Members monitor their own development.
activities. - Pelita I Development (1960-1969). A program focused on
Schulze-Delitzsch Concept. This concept was developed by enhancing the knowledge and skills of cooperative
Friedrich Wilhelm Raiffeisen in 1862/1863 to develop credit members.
cooperatives in Germany. These cooperatives grow from the - Consolidation of Cooperatives (1972). An effort to
bottom (the people) rather than being grown from the top consolidate small cooperatives into larger ones that could
(the government). They are independent organizations that utilize modern production equipment.
manage their businesses with self-help and democratic
management principles. Members are both owners and D. Changes in the Structure of the Cooperative
customers of the cooperative. However, government Department
assistance should not lead to cooperatives becoming overly - Departemen Koperasi (1946). The cooperative
dependent on it. The government's role in cooperative department was separated from the Department of Trade and
development is limited to efforts to build self-reliant became an independent entity.
cooperatives. - Changes in Structure (1964-1974). The cooperative
B. Early History of Cooperatives in Indonesia department underwent several structural changes, including
Initiators of Cooperative Movement in Indonesia becoming the Department of Transmigration and
1. R. Aria Wiriatmaja. The initiator of the Cooperatives, then the Department of Manpower,
cooperative movement in Indonesia. Transmigration, and Cooperatives, and finally the
2. De Wolf Van Westerrode. Continued the Department of Trade and Cooperatives.
cooperative movement after R. Aria Wiriatmaja. E. Development of Sharia Cooperatives
3. Budi Utomo. An organization that supported the - BMT (Baitul Maal Wattanwil): An organization of
cooperative movement in 1915. Sharia-based cooperatives first established in Jakarta in
Kumiyai Cooperatives. One of the first cooperatives in 1992. BMTs are based on the philosophy of serving the
Indonesia. economic needs of people following member-owned
SOKRI (Sekretariat Organisasi Koperasi). An principles.
organization that helped in the development of cooperatives - Principles of BMT : BMTs operate based on Sharia
in Indonesia. principles such as:
Congress of Cooperatives. The first cooperative congress 1. Open and Voluntary Membership.
in Indonesia was held in 1947 in Tasikmalaya. Members can join and leave voluntarily.
Regulations and Cooperative Congresses 2. Democratic Management. BMTs are
1. Verordening Op De Cooperatieve managed democratically.
Vereeniging (1929). A regulation that 3. Providing Kredit. BMTs provide credit to
governed cooperatives. members based on Sharia principles.
- KJKS (Cooperative Sharia Financial Services)
: Sharia-based financial services cooperatives established - Functions of the Cooperative and SME Department :
according to government regulations to manage Sharia This department has five main functions: managing
financial activities. cooperative and small business affairs, assisting the
F. Development of the Cooperative and SME Department President in administering state government, and conducting
- Changes in Department Name (1993-1999) : The other activities related to cooperatives and small businesses
cooperative department underwent several name changes, Types
including becoming the Department of Cooperatives and • Marketing Cooperative: A cooperative
Small Business Development, then the Department of that helps members sell their products collectively
Cooperatives and Small Business Owners, and finally the for better prices. Example: Koperasi Pemasaran
State Ministry of Cooperatives and Small and Medium-Sized Tani (farmers market their agricultural products
Business Owners. together)
 • Consumer Cooperative: A cooperative • Full-Time Dedication – Provide constant
that buys goods in bulk and sells them to members focus to keep operations running smoothly.
at discounted prices. Example: Koperasi Konsumen Draheim’s Cooperatives System Approach
Karyawan (employees buy groceries at lower • Sociological Approach – Cooperatives
prices.) serve members and improve communities, like
• Productive Cooperative: A cooperative Koperasi Unit Desa (KUD), which helps farmers
where members produce goods together and sell with loans and equipment to improve their
them. Example: Koperasi Produksi Kecil (artisans livelihoods.
collectively produce and sell products like crafts) • Neo-Classical Approach – Cooperatives
• Cooperative Service: A cooperative also need to operate as businesses, like Koperasi
providing services like insurance or healthcare to Simpan Pinjam (KSP), which provides financial
members. Example: Koperasi Jasa Keuangan services and competes in the market with
(offering financial services such as loans and competitive interest rates.
insurance.)
• Selling and Buying Cooperative: A MSME’S (Micro, Small, and Medium Enterprises)
cooperative that buys and sells products to MSMEs (Micro, Small, and Medium Enterprises) are
members. Example: Koperasi Pedagang (helps small businesses with limited resources and staff, important
traders buy and sell goods at better prices.) for creating jobs and helping local economies grow
• Savings and Loan Cooperative (KSP): A Objectives
cooperative that collects savings and provides loans • Job Creation: To generate employment
to members.Example: Koperasi Simpan Pinjam opportunities and reduce unemployment.
Serba Usaha (offers savings accounts and loans) • Economic Growth: To contribute to the
• Multipurpose Cooperative: A overall economic development of a region or
cooperative offering multiple services like savings, country.
loans, and retail. Example: Koperasi Serba Usaha • Entrepreneurship: To encourage
(provides loans, sells goods, and offers services like innovation, self-employment, and the growth of
healthcare) small businesses.
• Koperasi Unit Desa (KUD): A rural • Poverty Reduction: To improve living
cooperative supporting farmers with loans and standards by providing income opportunities in
agricultural supplies. Example: KUD Tani Makmur local communities.
(offering seeds, fertilizers, and loans to farmers)
• Local Development: To stimulate the
• Koperasi Simpan Pinjam (KSP): A development of local economies by utilizing local
cooperative focusing on savings and loan services. resources and talents.
Example: Koperasi Simpan Pinjam Sejahtera
• Market Diversification: To create a
(provide savings accounts and loans to members.)
competitive market by offering diverse products and
services.
Source of Funding Types
• Own Capital – Contributions from • Micro Enterprises: Very small businesses
members, including membership fees, shares, and with limited capital and fewer employees, often run
retained earnings. by individuals or families. Examples include street
• Principal Savings – Voluntary deposits by vendors, small shops, or home-based businesses.
members, intended for future withdrawal. • Small Enterprises: Small businesses with
• Mandatory Savings – Required more resources than micro-enterprises, typically
contributions from members at specified times. employing up to 50 people. These may include
• Reserve Fund – Profits set aside for future small factories, retail stores, or service providers.
growth and to cover losses. • Medium Enterprises: Larger businesses
• Grants – Donations from individuals, with more significant capital, typically employing
governments, or organizations for development. between 50 and 250 people. These businesses often
• Voluntary Savings – Optional have greater market reach and may include
contributions from members, withdrawable at any manufacturing companies or regional service
time. providers. Source of Funding
Role of Managers in Cooperatives 1. Banks (OJK Supervised): Provide
• Planning and Resource Management – working capital loans, investment loans, overdraft
Strategize future operations and optimize use of facilities, and trade financing to MSMEs.
resources to achieve goals. 2. Non-Bank Institutions:
• Leadership – Inspire and guide teams, • Venture Capital: Invests in high-
motivate employees, and resolve conflicts. growth, innovative MSMEs.
• Collaboration – Build relationships and • Leasing: Provides equipment for
foster teamwork to accomplish cooperative a fee.
objectives.
 • Pawnshops: Offer loans secured 5. Business Cooperation: MSMEs can
by personal belongings. receive funding through flexible payment terms
• KSP/USP: Cooperatives offering from larger companies.
flexible loans to members. 6. ZISWAF: Zakat, Infaq, Sadaqah, and
3. Corporate Social Responsibility (CSR): Waqf funding supports MSMEs, particularly those
Private and government companies allocate funds in poverty.
for MSME development. 7. Angel Investors: Wealthy individuals
4. BUMN Partnership Programs (PKBL): invest in MSMEs and startups in exchange for
Offer loans to MSMEs with lower interest rates and equity
simpler requirements.