The Meaning and Meaning of the Cooperative Symbol

The Meaning and Meaning of the Cooperative Symbol – In Indonesia, the existence of cooperatives has a major influence on the country’s economic system. The services provided in cooperatives to their members are of sufficient quality and quality so that the existence of cooperatives can be superior to other business entities.

Then, what is the purpose of forming the cooperative? Why does the existence of cooperatives have a major influence on the economic system?

If  doesn’t understand the purpose of forming a cooperative and things related to cooperatives, let’s look at the following explanation!

Cooperative goals

Based on the goals of cooperatives contained in Article 4 of Law No.25 of 1992, the objectives of cooperatives are as follows:

  1. Provide welfare to members and society.
  2. Creating an advanced, just and prosperous society.
  3. Improving the lives of members and the community, especially in the economic field.
  4. Building a national economic order.

According to Law Article 4 No.25 of 1992, cooperatives
has the following objectives:

  1. Build and develop the economic potential and capabilities of members in particular and the general public to improve economic and social welfare.
  2. Strengthening the people’s economy as the basis of national economic strength and resilience with cooperatives as a teacher.
  3. Participate actively in efforts to improve the quality of human life and society.
  4. Strive to realize and develop the national economy which is a joint effort based on the principles of kinship and economic democracy.

Meanwhile, according to Law Article 3 Number 25 of 1992, the purpose of cooperatives reads “Cooperatives aim to promote the welfare of members in particular and society in general, as well as participate in building the national economic order in order to create an advanced, just, and prosperous society based on Pancasila and the Law. 1945 Constitution”.

Understanding Cooperatives According to Experts

The Meaning and Meaning of the Cooperative Symbol

Based on Law Number 12 of 1967, cooperatives have the meaning as people’s organizations with a social character and consist of people and cooperative legal entities which are an economic arrangement as a joint effort based on the principle of kinship.

According to Mohammad Hatta, cooperatives are a joint effort to improve the fate of economic livelihoods based on mutual assistance. The spirit of helping is driven by the desire to provide services to friends based on the existence of “one for all and all for one”.

According to Chaniago, a cooperative is an association consisting of individuals or legal entities, which gives freedom to members to enter and leave, by working together in a family manner to carry out efforts to enhance the physical welfare of the members.

From the opinions of experts regarding the cooperative, it can be concluded that the cooperative is an organization or business founded by one or several people to achieve the goal of mutual benefit based on the principle of kinship.

The existence of cooperatives is not only growing in Indonesia, but also in every country in the world such as England, Sweden, Denmark, France, United States of America, Korea, and other countries.

Cooperative Family Principle

Based on Law Number 25 of 1992, cooperatives use the principle of kinship. This principle is the basis for running a cooperative where the ownership and management is carried out by the members.

Cooperative Legal Foundation

Ideal runway

The ideal foundation or basic foundation in cooperative business is Pancasila. Pancasila has contained state goals implicitly and explicitly. Especially in the fifth principle of Pancasila which reads “Social Justice for All Indonesian People” which is the spearhead in the cooperative movement both as administrators and members.

Structural Foundation

The structural foundation is the cooperative footing in the structure of social life. The structural foundation in cooperative business is the 1945 Constitution, especially Law No. 25 of 1992 and Article 33 of 1945.

Why is the 1945 Constitution used as the structural basis for the cooperative movement?

Because the 1945 Constitution contains the procedures for state life from all aspects of life, including the economic field.

Operational Platform

The operational basis for cooperative business is Law Number 12 of 1967 concerning Indonesian Cooperatives. The Law contains all types and kinds of activities that refer to the ideal and structural basis.

Types of Cooperatives

A. By function:

1. Production Cooperative

A production cooperative is a type of cooperative that carries out a production business or is engaged in the manufacture and sale of goods. For example, dairy cow cooperatives, tofu and tempe cooperatives, agricultural cooperatives, and others.

This type of cooperative usually consists of workers, small rulers, and people who have the ability to produce goods or services.

Production cooperatives are divided into two types, namely:

  • Workers’ production cooperatives: their members are people who do not have their own companies.
  • Producers’ production cooperative: its members are people who have their own companies

2. Consumption Cooperative

This type of cooperative handles the procurement of various basic goods such as rice, electronic goods, soap, and others.

Consumption cooperatives aim to serve the basic needs of their members.

This cooperative has several functions, namely:

  • As a sole distributor of daily necessities
  • The price of goods becomes cheap in the hands of consumers
  • Costs of selling and buying can be more efficient

3. Credit Cooperatives or Savings and Loans Cooperatives

This type of cooperative was established to provide an opportunity for its members to obtain loans easily and with lower interest rates.

Credit cooperatives are usually engaged in the field of capital formation through savings of their members on a regular basis, then loaned to other members in an easier, cheaper, and more appropriate way for productive and welfare purposes.

Examples of credit cooperatives are Credit Union, Bukopin, Pasar Cooperative Bank, and others.

This credit cooperative has its own objectives, namely:

  • Helping credit needs with light conditions to members
  • Directing its members to be more organized in saving savings so that they can form their own capital
  • Guiding its members to save more on their income
  • Increase knowledge about cooperatives

4. Service Cooperative

This type of cooperative is engaged in providing certain services that can be used by members and the general public.

In general, service cooperatives are formed in order to provide services to their members.

Examples of this type of cooperative are the Building Planning and Construction Cooperative, the Indonesian Insurance Cooperative, the National Housing Cooperative (Kopenas), to the Services Cooperative in matters of SIM documents, STNK, Passport, Land Certificates, and others.

These services can be provided by each service cooperative, including:

  • Transport cooperatives: provide goods transportation services to members and the general public. Capital is given in the form of transportation equipment and spare parts. Terms of use, if by members, are subject to a lower rate than the general rate.
  • Housing cooperatives: provide housing services. Rental wages are usually lower and when selling at a lighter price.
  • Insurance cooperatives: provide life insurance or accident insurance to their members.
  • Electrical service cooperatives: provide electricity services. This is done by buying electricity in large quantities and then distributing it to members at a lower rate.
  • Tourism cooperatives: provide lodging and consumption transportation services at lower rates.

5. Multipurpose Cooperative

The formation of this type of cooperative is usually in rural areas at the suggestion of the Government, as the Village Unit Cooperative. This Village Unit Cooperative is built from one or several villages that have economic potential.

Its members are people who live in the area of ​​the village unit by providing various needs.

The Village Unit Cooperative has several functions, namely:

  • Credit
  • Distribution of agricultural production facilities and daily necessities
    Processing and marketing of agricultural products
  • The difference between KUD and Savings and Loans Cooperative is that this type of cooperative prioritizes its production to its members, while the Savings and Loans Cooperative carries out a business of borrowing a sum of money for the needs of its members.

B. Based on Level and Area of Work

1. Primary Cooperative

The minimum number of members is 20 people.

2. Secondary Cooperative

A combination of cooperative bodies with a wider scope of work.

C. Based on Membership

1. Civil Service Cooperative

Its members are central and local civil servants. This type of cooperative aims to improve the welfare of its members (public servants) and is established within the scope of a department or an agency.

2. Market Cooperative (Koppas)

Its members are market traders.

3. Village Unit Cooperatives (KUD)

Its members are rural communities that focus on rural economic business activities, usually in agriculture. The activities carried out in the KUD are providing fertilizers, eradicating plant pests, plant seeds, agricultural tools, to technical agricultural counseling.

4. School Cooperative

Its members are school residents, namely teachers, employees, and students. This type of cooperative provides the needs of school residents such as textbooks, stationery, light snacks, and others. In addition, the existence of this school cooperative can train students to be organized, responsible, and honest.

Cooperative Role

Based on Law No. 25 of 1992 Article 4, the existence of cooperatives has certain roles and functions, namely:

  • Build and develop the potential and economic capacity of its members and the general public in order to improve social and economic welfare.
  • Take an active role in efforts to enhance the quality of human life and society.
  • Strengthening the people’s economy as the basis for the strength and resilience of the national economy with cooperatives as its pillars.
  • Strive to realize and develop the national economy, which is a joint effort based on the principles of kinship and economic democracy.
  • Develop creativity and build organization for students.

Cooperative Principle

Based on Law No.25 of 1992 Article 5, a cooperative can operate using the following principles:

  1. Membership is voluntary and open
  2. Management is carried out democratically
  3. The distribution of the remaining operating results (SHU) is carried out fairly
  4. Limited remuneration for capital
  5. Independent
  6. Cooperative education
  7. Cooperation between cooperatives

Cooperative Emblem

information from The cooperative logo has changed. Previously in 1947 to 2012 the cooperative logo used the symbol as above, but in 2012 the cooperative finally replaced it with a flower mosaic-shaped symbol.

However, this change did not last long. So based on the Decree of the Indonesian Cooperatives Council No. SKEP/03/DEKOPIN-E/I/2015 concerning Changes to the Coat/Logo of the Indonesian Cooperative Movement, the symbol of the cooperative in the form of a flower mosaic is declared to be changed back to its original symbol.

The reason for the re-change of the symbol is in accordance with the aspirations of the Indonesian Cooperative Movement, which wants the Indonesian cooperative symbol to be returned to the symbol that had been determined for the first time.

Meaning and Explanation of the Cooperative Symbol

1. Gears

This symbol has the meaning that hard efforts must be taken continuously. This symbol leads them to be hard workers who can become prospective members by fulfilling the conditions.

2. Chain (left side)

This symbol has the meaning of strong family ties, unity, and friendship. This is in line with cooperative members who are cooperative owners, so that members must have a friendly and united attitude like a family.

What binds fellow members of the cooperative is the law of the cooperative’s Articles of Association (AD) and Bylaws (ART).

3. Cotton and Rice (right side)

The cotton and rice symbols mean the prosperity of the members of the cooperative in particular and the society in general that the cooperative is working on. Cotton means the basic ingredients of clothing (clothing) and rice means the basic ingredients of food (food).

4. Scales

The symbol of the scales means social justice for all its members. The symbol of this scale is also often a symbol of law. All cooperative members are entitled to receive fair treatment between “Chain” and “Kapas-Padi”.

5. Star in Shield

The shield symbol means Pancasila which is the ideal basis for cooperatives. Obedient cooperative members must pay attention to the values ​​contained in Pancasila.

Meanwhile, the star symbol can be interpreted as “heart” and the shield is “the body”.

6. Banyan Tree

The banyan tree symbol means a symbol of life as a tree in the wayang culture by Sunan Kalijaga. Tree branches mean life, so “Scales” and “Stars” become life values.

7. Indonesian Cooperative

The inscription “Indonesian Cooperative” means that the symbol belongs to the Indonesian state cooperative, not from another country.

8. Color Red and White

These colors describe the national nature of Indonesia as well as the colors of the Sang Saka Merah Putih flag.

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