In the current development, cooperative development can not run as expected. Cooperative development in Indonesia today is so very slow. Although various policies have been announced by the government, the existence of co-operatives in Indonesia still can not meet the conditions desired by the community. One reason is lack of co-operative society enthuses. This is because during these cooperatives were seen as an institution, not as an economic system.
If we see in terms of cooperative institutions, then we can see them as associations and cooperatives as a business entity. As an association, we can see from the definition of the cooperatives themselves, which is a gathering of people, where people are working together to jointly achieve a common goal, namely to increase the standard of living and welfare.
In this case, the collection of people is a prerequisite for the formation of a cooperative, where the rules of Indonesian cooperatives, cooperatives can only be established if there is a minimum of 20 people. In addition, as an association or organization, it is necessary in the cooperative management of the cooperative to manage and represent it in running their businesses and achieve their goals.
Based on economic democracy which does not want any economic concentration on just one hand, but it should be evenly distributed to every citizen. Business entity in accordance with this provision is a cooperative, where the cooperative is a business entity as well as the economic movement that promotes the interests of members in particular and society in general by virtue of kinship. Thus, the cooperative as an economic system has a fairly strong political position because it has a constitutional basis.
Cooperatives in Indonesia is not developed in accordance with the wishes of the community, but many in some companies / organizations that make the cooperative itself and for the members who participated certainly benefit from the cooperative. But the cooperative is not seen as a major institution that interests many people. Most days now, especially large urban areas rarely use cooperative economic system, because many financial institutions (Bank) is outstanding and the community is generally more convenient for some facilities ease. But for remote region, the cooperative is still reliable for the welfare of its citizens. Where in accordance with the cooperative principles of kinship, for the welfare of its members.
