The potency of economies lies in the people, thus the prosperity of the people indicates the success of the system. This is one of the objectives in the field of co-operative economy. To achieve the intention, cooperatives work as an organization that operates through pooling or accumulating in parts of larger yet venous system. In many different types of Indonesian cooperatives, every part and members, are responsible for the primary budget and operational budget which the amount and pooling frequency are set and agreed upon all members.
The co-operative system arranges equal right to all members. According to the Indonesian Republic Cooperative Law – Act 25 of 1992, every member holds equal rights and responsibilities by the Articles of Association. The general rights of each member including to attend Annual Member Conference, to choose or to be chosen as the executive committee, and to express opinions to the conference or to the executive executives. It is the responsibility of each and every member to maintain and cultivate the principle of fellowship in the organization.
Arranged upon the Indonesian Republic Cooperative Law – Act 25 of 1992, the requirement of founding a cooperative is having a minimum of 20 registered members. The membership should be open, voluntarily and every member involved based on their own and personal will. Openness in cooperative means that there is no discrimination of any form to the members. To allow the organization system to run accordingly, the cooperative acquires its members from similar business interest and purposes, so every member is willfully bound to participate in the business activity.
Coop as an organization
As a business organization, a cooperative is an economic institution. In terms of running the business, cooperative base their operation to the rational economic theory including the effectivity and efficiency to achieve the optimum result. Meanwhile, as stated above the objection of a cooperative institution is to prosper the member, because cooperative is a pool of people instead of a pool of funds. Therefore, the profit earned is dedicated to the life of the organization itself and for the member it is profit shared in the form of surplus revenue.
Why cooperative is important for the economics
The noble purpose of the cooperative objectives is to prosper the economy of the social environment. It is hoped that through the cooperative system, the national economy is supported and sustained. This is the reason that cooperative is identical with the MSME. The small and medium business are united through their same vision of sharing economy, in a traditional way of collecting funds independently. The likeness between cooperative’s objective and the role of MSME bring the two together in the potency of economies of scale.
Potential aspects to the partnership
Today, there are many ways to improve the life expectancy of a cooperative organization, especially in terms of business partnerships. Prevailing business institutions that provide services is obliged to focus on administering the credit and loan needs of small businesses. If the Cooperative organization, with the dedicated member adhere to the requirements, then it is an effective way to scout promising clients for the business institutions.
Tokoin is present to “meet the needs” of Tokoin’s users and partners (financial institutions, insurance, property business, etc). Through the idea of accelerating the MSME, Tokoin opens up the membership opportunity for the MSME to build reputation digitally and accordingly.
Thus, Tokoin will facilitate both cooperatives and the MSME sectors to meet their needs. Through the Tokoin blockchain platform, MSME will be facilitated to solve their access credit problem, while cooperatives will be assisted with a trusted platform to build their digital ecosystem with an effective market solution.
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