SOUND TUNING OF COOPERATIVE LAW, POLICY & REGULATION AND PRIMARY COOPERATIVES BY LAW IN INDONESIA

1. THE MINISTRY FOR COOPERATIVES AND SMES THE REPUBLIC OF INDONESIA The 1st ASIA-PASIFIC COOPERATIVE REGISTRAR’S CONFERENCE SOUND TUNING OF COOPERATIVE LAW, POLICY & REGULATION AND PRIMARY COOPERATIVES BY LAW IN INDONESIA by: Setyo Haryanto Deputy Minister for Institutional Development of Cooperatives and SMEs

2. INTRODUCTION THE MINISTRY FOR COOPERATIVES AND SMES THE REPUBLIC OF INDONESIA Indonesia’s Strategic Position • Geography & Demography: • Land area: 1.91 Million Km2 • Population: 237.556 Million people 1 • Economic Growth: • In 2004: 5.1% • In 2009: 4.5% • In 2010: 5.8% • In 2012: 6.4% • In 2014: 7.7% 2 2 • Unemployment level: • In 2004: 9.9% • In 2012: 6.32% • In 2014: 5% to 6% (targeted) 3 • Poverty level: • In 2004: 16.7% • In 2012: 11,96% • In 2014: 8%-10% 4

3. NORMATIVE FRAMEWORK OF COOPERATIVE DEVELOPMENT THE MINISTRY FOR COOPERATIVES AND SMES THE REPUBLIC OF INDONESIA LAW NO. 25 OF 1992 CONCERNING COOPERATIVES LAW NO. 17 OF 2012 CONCERNING COOPERATIVES New Regulation To strengthen co-operative governance, accountability and transparency. To strengthen institutional cooperatives and develop a truly autonomous and cooperative self-reliance. To enable cooperatives expanding their activities global ly.

4. DEFINITIONS AND TYPES OF COOPERATIVES THE MINISTRY FOR COOPERATIVES AND SMES THE REPUBLIC OF INDONESIA Based on Law No. 17/2012 Definitions: Cooperative is a legal entity establish by individuals or registered cooperative societies with the separation of the wealth of its members as capital to run the business, which meets the common aspirations and needs in the economic, social, and cultural fields in accordance with the values and principles and principles of cooperatives. Types: The type of a cooperative society is based on the similarity of activities and economic interests of its members such as : Consumer cooperative society Producer cooperative society Service cooperative society Saving-loan cooperative society

5. ESTABLISHMENT REQUIREMENT THE MINISTRY FOR COOPERATIVES AND SMES THE REPUBLIC OF INDONESIA Based on Law No. 17/2012 • Primary Cooperative Society is a cooperative society established by and having individuals as members. • Founded by at least 20 individuals. Secondary Cooperative Society is a cooperative society established by and having cooperative societies as members. Founded by at least 3 primary cooperative societies.

6. VALUES AND PRINCIPLES THE MINISTRY FOR COOPERATIVES AND SMES THE REPUBLIC OF INDONESIA Based on Law No. 17/2012 Based on Law No. 17/2012 • Brotherhood • Selp-help • Selp-responsibility • Democracy • Equality • Equity • Self-reliance Values believed by cooperatives members: • Honesty • Openess • Social responsibility • Caring for others Basic Values: Principles: Voluntary and open membership Democratic member controll Members’ economic participation Autonomy, selp-help and independence Educationm, Training and Information Cooperation among cooperatives Concern for environment and community

7. THE ROLE OF GOVERNMENT IN COOPERATIVES DEVELOPMENT THE MINISTRY FOR COOPERATIVES AND SMES THE REPUBLIC OF INDONESIA Based on Law No. 17/2012 The Government and Local Government shall decided policies that encourage cooperatives societies to grow and develop properly. In deciding the policy, the Government and Local Government shall take steps to support the growth, development and empowerment of cooperatives societies for the benefit of members. Kinds of facilities and Government supports: Institutional development and assistance in cooperative education, training, counseling, and research. Technical assistance of Cooperatives’ business. Strengthen capital and financing of cooperatives. Develop business network of cooperatives. Facilitate consultation to assist problem solving of cooperatives. Tax and Fiscal incentives.

8. IMPLEMENTING AGENCIES THE MINISTRY FOR COOPERATIVES AND SMES THE REPUBLIC OF INDONESIA 2. The Indonesian Cooperative Council Function: • The Ministry of Cooperatives and Small and Medium Enterprises. Function: Coordination of policy, planning integration and synchronization of empowerment cooperatives program. Supervision, monitoring and evaluation. As an organization to struggle the concerns and aspirations of the cooperatives societies

9. Cooperative Positioning ? Cooperative as Legal entity INSTITUTION Social Community Advance Medium Elementary ASSOCIATION

10. Cooperative Building as “Legal Entity” Produsen Konsumen Cooperative as “legal entity” business Jasa Certificate installation Simpan Pinjam The Statutes (Not Yet) The Statutes (Have) Trying themselves as members of a cooperative Rule of Cooperatives Sociaties Specific Rule • Pendidikan • Rekomendasi Arrangement Rule

11. 21. Perbedaan Badan Hukum dan Ijin Usaha Usaha Badan Hukum Instansi YMIU Penerbangan Pelayaran Perdagangan Pegelolaan Hutan Perhotelan Perkebunan Perbankan Kementerian Perhubungan Kementerian Perhubungan Kementerian Perdagangan Kementerian Kehutanan dan Perkebunan Kementerian Pariwisata Kementerian Kehutanan dan Perkebunan Bank Indonesia PT Koperasi Kementerian Perhubungan Kementerian Perhubungan Kementerian Perdagangan Kementerian Kehutanan dan Perkebunan Kementerian Pariwisata Kementerian Kehutanan dan Perkebunan Bank Indonesia Penerbangan Pelayaran Perdagangan Pegelolaan Hutan Perhotelan Perkebunan Perbankan Istimewa Kementerian Negara Koperasi dan UKM Simpan Pinjam Lembaga Usaha

12. CLOSING THE MINISTRY FOR COOPERATIVES AND SMES THE REPUBLIC OF INDONESIA Continuously sharing and hand in hand among Government and all stakeholders to empower and strengthen our cooperatives. Sharing of policy and facilities program to support SMEs. Explore the cooperation network opportunities for enhancing Cooperatives promotion (capacity building and its technology transfer, market access development, and exchange information).

13. Thank You Ministry of Cooperatives and SMEs Jl. HR. Rasuna Said, Kav. 3-4, Jakarta 12940 -Indonesia Homepage: www.depkop.go.id