Brief of Cooperative and Systems economy

Cooperatives are business entities whose members consist of individuals or legal entities. Speaking of cooperation, we will definitely be reminded of populist economic principles based on a sense of kinship. Economic system based on kinship will facilitate its members, because of the populist economic system has no provisions that are too binding.

Cooperatives also work under the cooperative laws in force. Cooperatives have a special statute that has a measurable way of working. The law on cooperatives listed in Article 4 of 25 in 1992.

The Act describes the functions and role of cooperatives in the community. In the legislation explained that the cooperative was formed to help the economy of the people. Points contained in article 4 the average tone of the same, namely, to fight for the fate of the people's economy. Cooperative with all the good economic system, trying to build a strong state economy, the economy starts from people who have already been strong.

The next article, Article 5, No.25 of 1992 set up cooperatives in Indonesia. The article was more set on the principles of cooperative work. The principle of cooperative work listed in this article are also popular.

In the article explained that the management rights granted fully cooperative to the people, and of course carried out by democratic means. Membership of a cooperative is voluntary and open, in other words, allows its members to resign from the stewardship of the cooperative at any time, without any penalty. The results of the cooperative effort was distributed equitably based on the capital and the services of their respective managers.

Based on sector-owned businesses, there are several types of cooperatives, such as savings and loan cooperatives, consumer cooperatives, producer cooperatives, marketing cooperatives, to cooperatives engaged in the service sector.

Cooperatives that serve the borrowing and lending activities of its members, is managed by Credit Unions. For cooperatives that sell consumer goods for its members, called the Consumer Cooperative.

The Producers Cooperative moves in the procurement of raw materials are designated as capital of their members. There are also types of Cooperatives and Marketing Services. Marketing cooperatives engaged in marketing of members' work, while the Cooperative Services, engaged in the services sector.

Capital that can drive the economy of cooperatives obtained from deposits of its members. These deposits are subject, obligatory, and specific.

Principal savings, usually paid at the time of registering as a member of the cooperative. Unlike the obligatory savings. Deposits of this type are paid on a specific deadline and usually repetitive. There are also special types of deposits are voluntary.

In addition to its capital reserve, the cooperative also has other capital that can be used, among them the reserve fund and grants. For this type of deposit, capital allowance from the rest of the operating results or the results of grants and donations from other parties outside the membership of the cooperative itself.