Understanding and Cooperative Agricultural Systems

Understanding and Cooperative Agricultural Systems
The definition of cooperatives according to Law Number 25 of 1992 is a business field consisting of cooperative persons or legal entities by basing their activities based on cooperative principles as well as a people's economic movement based on the principle of kinship.
Cooperative is a collection of people and not a collection of capital. Cooperatives must truly serve the interests of humanity solely and not the material. Linking agricultural research center with seed producer cooperatives farmers, cooperation in cooperatives is based on a sense of equality, and awareness of its members. Cooperatives are a forum for economic and social democracy. Cooperatives are jointly owned by members, management and managers. The business is arranged in accordance with the wishes of the members through a member meeting.
Cooperatives as business entities can conduct their own business activities and can also work together with other business entities, such as private companies and state companies.
The difference between cooperatives and other business entities, can be classified as follows:

Viewed in terms of organization
Cooperatives are organizations that have the same interests for their members. In carrying out its business, the highest power in a cooperative lies with the members, while in a non-cooperative business entity, its members are limited to those who have capital, and in carrying out its activities the highest power lies with the owners of venture capital.

In terms of business objectives
Cooperatives aim to meet the needs of their members by serving members as fairly as possible, while non-cooperative business entities generally aim to gain profits.
Viewed in terms of the attitude of business relations
Cooperatives always hold coordination or cooperation between one cooperative and another cooperative, while non-cooperative business entities often compete with each other.
Viewed in terms of business management
The management of cooperative businesses is carried out openly, while the non-cooperative business entities manage their businesses privately.
Is the definition of cooperative different from "mutual cooperation"
Between cooperatives and mutual cooperation have in common, but also have very basic differences. These differences include the following:
Cooperatives were born due to economic pressure, while mutual cooperation was created whenever needed and after it was dissolved.
Cooperatives were established for a long period of time, while mutual cooperation was born because of cultural customs, taking place in a short time (only when needed).
Cooperatives are more dynamic in how they work, whereas mutual cooperation is generally carried out statically and awaits command or command.
Cooperatives have a certain number of members, while mutual cooperation is unlimited.
Cooperatives have work programs, statutes, and by-laws, while mutual cooperation does not have work programs, by-laws, and by-laws.
Cooperatives are legal entities, whereas mutual cooperation is not legal entities and are spontaneous.

Characteristics of Cooperatives
Some characteristics of cooperatives are:
Association of people.
Profit sharing according to comparison of services. Capital services are limited.
The goal is to ease the economic burden of its members, improve the welfare of its members, in particular and society in general.
Non-permanent capital, changes according to the number of member deposits.
Not concerned with capital income / business work but membership principle of togetherness.
In a meeting each member of each member or vote without regard to the amount of each capital.
Each member is free to enter / exit (members change) so that in the cooperative there is no permanent capital.
Like companies in the form of Limited Liability Companies (PT), the Cooperative has the form of a Legal Entity.
Running a business
The cooperative is responsible for the management.
Cooperative is not a collection of capital of several people who aim to seek maximum profit.
Cooperative is a joint family and mutual cooperation effort. Each member is obliged to work together to achieve the goal, namely the welfare of the members.
Losses are shared between members. If the cooperative suffers a loss, the members carry it together. Members who are unable to be freed from the burden / dependents losses. Losses are borne by members who are able.

Cooperative Purpose
According to Law Number 25 of 1992 Article 3 cooperatives aim to advance the welfare of its members in particular and the community in general and participate in building the national economic order in order to create an advanced, just and prosperous society based on Pancasila and the 1945 Constitution.

Strengths and Weaknesses of Cooperatives
The things that are an advantage of cooperatives in Agriculture are:
Be open and voluntary.
The amount of principal savings and mandatory savings is not burdensome for members.
Each member has the same voting rights, not based on the amount of capital
Aiming at increasing the welfare of members and not merely looking for profit.

Things that are a weakness of cooperatives in Agriculture are:
Cooperatives are difficult to develop because of limited capital.
Inadequate management in managing cooperatives.
The caretaker is sometimes dishonest.
Lack of cooperation between management, supervisors and members.
Cooperative example

Saving and loan cooperative
Savings and loan cooperatives are cooperatives that function more or less the same as banks.
The difference is that a savings and loan cooperative does not take advantage or interest from the borrowing member.
Some money is actually loaned with the aim of building a business according to an agreement made previously.

Producer's Cooperative
Producer's cooperatives are cooperatives whose members are people engaged in the production of goods.
Namely, small to medium-sized businesses (SMEs), which are established home industries.
Its activity is the procurement of raw materials.

Business entity
Business entities are juridical (legal), technical, and economic entities that aim to gain profits. Business entities are often equated with companies, although in reality they are different. The main difference is that a Business Entity is an institution while a company is a place where the Business Entity manages the factors of production.

Types of Business Entity in Agriculture
State-Owned Enterprise (or SOE) is a business entity whose capital is wholly or partly owned by the Government. The status of employees of these business entities are SOE employees, not civil servants. SOE itself now has 3 types namely Perjan, Perum and Persero.

Perjan is a form of state-owned enterprise that is wholly owned by the government. This Perjan is service oriented to the community, so that it always loses money. Now there are no SOE companies that use the struggle model because of the high cost to maintain these agreements in accordance with Law (Law) Number 19 of 2003 concerning SOEs.