Definition of Cooperative
In Law no. 1992, cooperatives are defined as "business entities consisting of individuals or cooperative legal entities based on their activities based on cooperative principles as well as a people's economic movement based on the principle of kinship" (Hendar & Kusnadi, 2005:18). According to Hendrojogi (1997: 46) Cooperatives are autonomous associations of people who join voluntarily to fulfill their common economic, social and cultural needs and aspirations through companies that are owned and controlled democratically.Cooperative Indonesia is a people's economic organization with a social character, consisting of people, or cooperative legal entities which are economic arrangements as a joint effort based on the principle of kinship (Article 3 of Law No. 12/1967) (Kartasapoetra et al, 1985: 3). According to Anoraga & Widiyanti (2007:147) Indonesian cooperatives are a people's economic organization with a social character, consisting of people or cooperative legal entities which are an economic arrangement as a joint effort based on the principle of kinship.
The main purpose of cooperatives is to improve the standard of living and welfare of its members. In principle, the cooperative is not a business that seeks profit solely as well as other private businesses. Cooperatives try to meet and meet the daily needs of its members. Cooperative business is usually in accordance with the needs of its members, which are cultivated and traded by cooperatives which are usually produced or all that is needed by its members (Widiyanti & Sunindhia, 2003: 3). According to Law Number 25 of 1992 concerning Cooperatives, the notion of cooperatives is a business entity consisting of individuals or cooperative legal entities based on their activities based on cooperative principles as well as a people's economic movement based on the principle of kinship.
According to Sudarsono (2004:17) basically a cooperative is also a company, although its orientation is not profit. However, this does not mean that cooperatives are anti-profit. Profit in the implementation of cooperative business only as a result and not as a goal. The purpose of the cooperative is to provide services and if profits are created, then it serves as a complement. According to Hatta (1987:177) as moral education, which is carried out by cooperatives to its members, can be called among other things as follows:
- Cooperatives teach their members to dream high, on the basis of reality. By expressing the ideals of the common good and welfare, energy is drawn up and deployed to carry it out.
- Cooperatives educate the feeling of democracy on the basis of their own practices and actions, namely that issues concerning the course of company affairs are divided by deliberation.
- Cooperative administrators are not paid, but where it is necessary to obtain only simple office money. Here is embedded the basis of social education, to kill selfish humans and revive idealistic humans, which are indispensable for leading society.
- Cooperatives trade in cash. Therefore, cooperative members are gradually educated so that they do not live more than their abilities and income. If people want an expensive item, they must save it first until the buyer's money is collected. In this way people are protected from the lure of rent-purchase, which often leaves people in debt for life and sometimes plunges into dire straits.
- In cooperatives, the size and scale must be correct. This is education, to keep members away from negligence and cheating. With this, people are educated to be honest.
- Cooperatives encourage their members to save at any time and at any time to maintain the safety of their lives and the safety of their company in the future.
According to Hatta (1987:248) Indonesian cooperatives in their development began after the Proclamation of August 17, 1945 until 1958 trying to implement these ideals. In cadre education, priority is given to educating cooperative people who have the spirit as mentioned earlier, in addition to providing technical knowledge as bookkeeping and others, in order to run cooperative companies responsibly. In the cooperative movement, in cooperative enterprises of whatever nature, in courses and meetings, as you know, we always try to instill in the members the qualities needed to develop Indonesian cooperatives in a prosperous manner.
The required properties are:
- Sense of Solidarity, a sense of solidarity here is meant the ability of each member to maintain relationships so that unwanted bad things do not happen.
- Individuality, Individuality does not arise by itself, but must be revived in the human soul by way of upbringing or upbringing. This upbringing and upbringing, which is carried out in day-to-day companies, is not completed in a short time, but requires a long time. Individuality should not be confused with individualism.
- Willingness and belief in oneself in a community to carry out self-help or self-activities for the common good.
- Love – to – the community, whose interests must take precedence over the interests of oneself or one's own group.
- A sense of moral and social responsibility.
The development of Indonesian cooperatives at that time proved that the basics of the Rochdale 1844 cooperative could be adapted to the ideals of Indonesian cooperatives. Experience shows that the aforementioned characteristics and traits must be honed in the practice of life, in cooperative efforts. Cooperatives grow with cooperative ideals, but also cooperative ideals develop with cooperative growth. Moving in the field of cooperatives is very necessary to bring the ideals of cooperatives to life. According to Hatta (1987:251) cooperatives are a good element of education to strengthen the economy and morale, because cooperatives are based on two joints, which strengthen each other. The two joints are solidarity, loyal friends, and individuality, awareness of one's self-worth. Cooperatives based on these two joints are getting stronger because they are fostered into cooperatives and with cooperatives. Only in cooperatives can solidarity and individuality develop in a harmonious relationship. By reviving and cultivating solidarity and individuality, cooperatives educate in the human heart a sense of social responsibility.
As moral education, which is carried out by cooperatives for its members, several things can be mentioned, including:
- Cooperatives teach their members to dream high, on the basis of reality. By expressing the ideals of the common good and welfare, energy is drawn up and deployed to carry it out.
- Cooperatives educate the feeling of democracy on the basis of their own practices and actions, namely issues concerning the way and affairs of the company are resolved by deliberation.
- Cooperative administrators are not paid, but where they only need to get only a simple position fee. Here is embedded the basis of social education to kill selfish humans and revive idealistic humans, which are indispensable to lead society.
- Cooperatives trade in cash. Therefore, cooperative members are gradually educated so that they do not live more than their abilities and income. If a person wants an expensive item, he must save it first, until the buyer's money is collected. In this way people are protected from the attractiveness of buying and selling rent, which often causes people to be in debt for life and sometimes fall into debt bondage.
- In cooperatives, the size and scale must be correct. This is education, to keep members away from negligence and cheating, with this honest human education.
- Cooperatives encourage their members to save at any time and at any time to maintain the safety of the company in the future.
- Thus the various kinds of cooperative education in practice, to form high morale and morals in the human chest. Cooperatives educate social people by having a moral responsibility to society.
So it can be concluded that the cooperative is a business entity or company that is not fully profit-oriented, but that does not mean that the cooperative is anti-profit. Cooperatives whose members are individuals or cooperative legal entities based on their activities based on cooperative principles as well as a people's economic movement based on the principle of kinship.
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