The Meaning and Meaning of the Cooperative Symbol

The Meaning of the Symbol on Cooperatives – 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 such a big influence on the economic system?

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

Cooperative Purpose

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

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

According to Law Article 4 No.25 of 1992, cooperatives have 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 for the strength and resilience of the national economy with cooperatives as saka guru.
  3. Participate actively in efforts to improve the quality of human life and society.
  4. Trying to realize and develop the national economy which is a joint effort based on the principle of kinship and economic democracy.

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

Definition of Cooperative According to Experts

Based on Law Number 12 of 1967 , cooperatives have the meaning of people’s organizations with a social character and consisting of people and cooperative legal entities which are an economic structure as a joint venture 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 mutual help is driven by the desire to provide services to friends based on “one for all and all for someone”.

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

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

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

Cooperative Family Principles

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 are carried out by its members.

Cooperative Legal Basis

Idyllic runway

The ideal foundation or basic foundation in a cooperative business is Pancasila. Pancasila has implicit and explicit state objectives. Especially in the fifth Pancasila precept 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 foundation of cooperatives in the structure of social life. The structural foundation of the cooperative business is the 1945 Constitution, especially Law No. 25 of 1992 and Article 33 of 1945.

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

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

Operational Platform

The operational foundation in the cooperative business is Law Number 12 of 1967 concerning Indonesian Cooperatives. The law contains all types and types of activities that refer to ideal and structural foundations.

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 tempeh 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 company.
  • Cooperative production of producers: 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 goods needs of their members.

This cooperative has several functions, namely:

  • As a sole supplier of daily necessities
  • Prices of goods become cheap in the hands of consumers
  • Sales and purchase costs can be more efficient

3. Credit Cooperatives or Savings and Loans Cooperatives

This type of cooperative was established to provide opportunities for its members to obtain loans easily and at lower interest rates.

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

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

This credit cooperative has its own objectives, namely:

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

4. Service Cooperatives

This type of cooperative is engaged in the provision of 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 Building Planning and Construction Cooperatives, Indonesian Insurance Cooperatives, National Housing Cooperatives (Kopenas), to Service Cooperatives in dealing with documents for driver’s licenses, STNK, passports, land certificates, and others.

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

  • Transportation cooperatives : provide goods transportation services to members and the general public. Capital is provided in the form of means of transportation and spare parts. Terms of use if by members, are subject to a lower rate than the general rate.
  • Housing cooperatives : provide housing offering services. Rent wages are usually lower and when selling at a lighter price.
  • Cooperative insurance i: provides life insurance coverage or accident insurance to its members.
  • Electricity 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 lighter rates.

5. Multi-Business Cooperative

The formation of this type of cooperative is usually in rural areas on the advice of the Government, with the designation of Village Unit Cooperatives. The 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 Cooperatives is that this type of cooperative prioritizes production for its members, while the Savings and Loans Cooperative carries out the business of borrowing a certain amount of money for the needs of its members.

B. Based on the level and area of ​​the work area

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.

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C. By Membership

1. Cooperative Civil Servants

Its members are central and regional 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. Activities carried out in KUD are providing fertilizer, plant pest eradication, plant seeds, agricultural tools, to agricultural technical counseling.

4. School Cooperative

Its members are school members namely teachers, staff, and students. This type of cooperative provides the needs of school members such as textbooks, stationery, light snacks, and so on. 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:

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

Cooperative Principles

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 results of operations (SHU) is carried out fairly
  4. Limited remuneration for capital
  5. Independent
  6. Cooperative education
  7. Cooperation between cooperatives

Cooperative emblem

Reporting from the logo of the cooperative has undergone a change. Previously, from 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, these changes did not last long. So based on the Decree of the Indonesian Cooperative Council No. SKEP/03/DEKOPIN-E/I/2015 concerning Changes to the Symbol/Logo of the Indonesian Cooperative Movement, the symbol of the cooperative in the form of a flower mosaic is stated to be changed back to the initial symbol.

The reason for changing the symbol back is in accordance with the aspirations of the Indonesian Cooperative Movement which wants the Indonesian cooperative symbol to be returned to the symbol as it was originally set.

Meaning and Explanation of Cooperative Symbol

1. Gear Wheel

This symbol has the meaning that hard efforts must be pursued continuously. This symbol refers to those hard workers who can become prospective members with qualifications.

2. Chain (left side)

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

What binds fellow members of the cooperative is the law of the Cooperative Statutes (AD) and Bylaws (ART).

3. Cotton and Rice (right side)

The symbols of cotton and rice mean the prosperity of members of the cooperative in particular and society in general which the cooperative strives for. Cotton means the basic material for clothing (clothing) and rice means the basic material for food (food).

4. Scales

The scales symbol means social justice for all its members. The scale symbol is also often a legal symbol. All cooperative members are entitled to receive fair treatment between “Chain” and “Cotton-Rice”.

5. The Star in the Shield

The shield symbol means Pancasila which is the ideal basis for cooperatives. Cooperative members who are obedient must pay attention to the values ​​contained in Pancasila.

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

The words “Indonesian Cooperative” mean that the symbol belongs to the cooperative of the Indonesian state, not from another country.

8. Red and White Color

This color depicts the national character of Indonesia as well as the colors of the Sang Saka Merah Putih flag.

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