UNIVERSITAS INDONESIA

EDUCATION OF COOPERATIVE NEEDED BY THE PEOPLE

FINAL PAPER

John Obed Mordekhai P. Simamora 1606899176

FACULTY OF ECONOMICS AND BUSINESS

ACCOUNTING STUDY PROGRAM
DEPOK
JUNE 2018
Statement of Authorship
I certify that the attached material is my original work. I declare that no other
persons’ work has been used without due acknowledgement.

Except where I have clearly stated that I have used some of the materials
elsewhere, it has not been presented by me for examination in any other course or
unit at this or any other institution.

I understand that the work submitted may be reproduce and/or communicated by

the university or third party authorized by the university for the purpose of
detecting plagiarism.

Name : John Obed Mordekhai P. Simamora

Student Registered Number : 1606899176
Title : Education of Cooperative Needed by The People
Date : 05 June 2018
Signature :
Introduction

There are a lot of successful cooperatives that can be found in all over the
world, a few of the successful cooperatives that we are familiar with are: ACE
Hardware Corporation, Barcelona FC, and Sunkist. Most people are familiar with
these names, however what most people do not know are they are cooperatives.
There are also a lot of people that do not know the meaning the word cooperative,
furthermore there are also people that have not heard of the word cooperative.

The government of Indonesia prefers to encourage cooperatives as the

main form of economic entity, because it is based on kinship principle, so it
benefits all the members of the cooperative, leading to an equal increase of
welfare to the citizens of Indonesia. This is one of the reasons why education
about cooperatives is important. There are four types of people that needs
different minimum levels of education regarding cooperatives, they are: People
outside of the cooperative/Nonmembers, Members, Administrators/Management,
and Supervisors. The minimum levels of education increase from one type to the
next type.

People outside of the cooperative/Nonmembers

The reason for this minimum level of education needed is so that people
would know about cooperatives, how they benefit from joining a cooperative,
why they do not need to be afraid of attempting to join a cooperative, and to make
them at least have interest of joining a cooperative. These are the minimum level
of knowledge they need to have:

 Definition of cooperative
People need to at least know what is a cooperative before knowing
anything else about it. According to UU No. 25 Year 1992, Cooperatives
are economic entities which its members are people or legal entities
cooperatives which based its activities on cooperatives principles as well
as people economic activities based on kinship principles. This is the legal
 definition of cooperative as it was according to Indonesia’s Undang-
Undang.
 Principles of cooperatives
Principles of cooperatives are:
o Voluntary and open membership
o Democratic member control
o Autonomy and independence
o Education, training and information
o Co-operation among co-operatives
o Member economic participation
o Concern for community
 Values of cooperatives
Based on International Cooperatives Alliance (ICA), cooperatives values
are:
o Self help
o Self-responsibility
o Democracy
o Equality
o Equity
o Solidarity
 Types of cooperatives
People need to know the different types of cooperatives so that they would
know which type of cooperative they would like to join. There are three
types of cooperatives, they are:
o Procurement Cooperatives: Cooperatives with has activities on
providing goods/services to its members.
o Marketing Cooperatives: Cooperatives which has activities to
collect goods and services from producers to be marketed to
consumer.
o Service Cooperatives: Cooperatives which produce services to
fulfill the needs of its members
  The Difference between Cooperatives and Private Business
People need to know the differences so that they can differentiate between
cooperatives and private businesses. From figure 1 we can see there are
three main differences between cooperatives and private business, we can
conclude from the figure that cooperatives are member owned service
oriented firm, where the owners are equal to the customer, while private
businesses are investor owned profit oriented firm, where the owners are
not equal to the customer.

Members

The reason for this minimum level of education needed is so that the
members would know what are they supposed to do in a cooperative, what are
they able to do in a cooperative, the legal side of cooperative, and why they
should stay in the cooperative. These are the minimum level of knowledge they
need to have:

 What people outside of the cooperative/nonmembers knows

 Legal basis of cooperative
 The history of cooperative
 Procedures for founding cooperative
 Rights and obligations as members
 Roles and functions of members
 Multiple identity member (owner and customer)

Administrators/Management

The reason for this minimum level of education needed is so that the
administrators/management can handle or lead the cooperatives properly, know
what decisions they should make while still holding the values and principles of
cooperatives, and how a cooperative is supposed to act towards its
owners/members, and costumers. These are the minimum level of knowledge they
need to have:

 What people outside of the cooperative/nonmembers and members knows

 Cooperative system
 Preparation of cooperative strategic plan & operational plan
 Standard Operating Procedure (SOP) and Self-Organizing Map (SOM) of
cooperative

Supervisors

The reason for this minimum level of education needed is so that they can
properly supervise the policy of the cooperatives, the health of the cooperative and
making sure that the administrators/managers are still upholding the values and
principles of cooperatives based on their actions. These are the minimum level of
knowledge they need to have:

 What people outside of the cooperative/nonmembers and members knows

 Method of cooperative policy supervision
 Aspect of cooperative health assessment

Educating the people

With these different minimum knowledges of cooperatives needed by

different types of people related to cooperatives, there needs to be activity or
training to educate these people to meet each of their own minimum level of
knowledge requirement. There are various ways to educate the people from the
trainings or seminars given by the cooperative themselves until the lessons about
cooperatives given to high school students or the cooperative course in college or
university. The next segments will talk about specific examples of educating the
people from various perspectives.
LAPENKOP (Lembaga Pendidikan Perkoperasian)

LAPENKOP is DEKOPINDA’s technical institute that functions as an

institution that facilitate the management and members of cooperatives to develop
scientific and cooperative insights both in terms of philosophy and ideology and
technical operations and development. Its vision is become a trusted partner to an
independent cooperative movement and its mission is enhance the empowerment
of cooperative movement through education and training. One of their main
activities are educating the people about cooperatives through training. They
implement different kinds of training to different types of people. This is how they
implement their training.

 Members’ education
The training is done in a structured and sustainable in four stages.
Implementation can be done at once or gradually. Each training discusses
three modules and it takes one day. The number of participants per activity
is 20-30 people. The training Facilitator/Instructor is a Cooperative Guide
who has a LAPENKOP Certificate.
 Administrators/management’s education
The training is done in a structured, systematic and continuous
manner, beginning with Basic Packages and Advanced Packages
(Themes). Advanced package, covers three themes, they are:
Communication, Leadership and Entrepreneurship. The participants of
Advanced package (theme) are those who have followed the basic
package, except the senior management, may directly select the advanced
package. Basic and Advanced training is conducted for four days or 32
lesson hours. The number of participants per activity is 20-30 people.
 Supervisors’ education
The training is done in a structured and systematic way in two
packages. Beginning with Basic Package and continued Advanced
 package. Advanced package participants are participants that have
completed the basic package. Basic and Advanced training is conducted
for four days or 32 lesson hours.

University of Waterloo

There is also a university that has integrated the education of cooperatives

into its programs, this is so that the university students will gain work experience
and knowledge at the same time. The university is called the University of
Waterloo. The University of Waterloo operates the largest post-secondary co-op
program of its kind in the world. Waterloo is a model of co-operative education,
which has spread to more than 100 colleges and universities across Canada. The
mission of co-operative education is to inspire Waterloo students to connect to the
possibilities in a continuously changing world of work; enable them to bridge
their academic and workplace knowledge; challenge them to learn, grow, and
contribute wherever they go. The vision of co-operative education is to
demonstrate innovative, global leadership in co-operative education and career
development, and position Waterloo as a top choice for students and employers.

Co-operative education combines academic studies with work experience.

Co-op allows you to gain up to two years of relevant work experience. The goal of
co-operative education are to actively support the university students through the
job search process, during the work term, and following university students’ work
term, work with university students, employers, alumni, and Waterloo faculties
and departments to determine employment needs and opportunities, recruit
relevant and high-quality employers, provide high-quality service to meet
university students’ needs, offer career guidance to co-op students, and improve
the co-op system and employment process.

The benefits of co-operative education are to help the university students

apply knowledge gained in the classroom, develop a professional résumé with a
solid work history, improve interview skills and promote the university students to
employers, gain up to two years of relevant work experience, earn money to help
pay tuition, identify the university students’ ideal working style and the type of
job the university students want after graduating, improve organization and time
management skills, get hands-on experience in the university students’ field of
study, and network with employers

INKOPPOL

From the answers that we received from INKOPPOL, they do not give
education to the people, they only educate their employees. Education and training
are generally given to employees who work on Cooperatives in Police
Environment (Inkoppol, Puskoppol/da, Primkoppol/res) to be able to do the work
according to their fields such as bookkeeping knowledge, the ability to operate the
printing press and others. Implementation tailored to the needs and schedule of the
organizers, and these activities have been set in the RAPB TAB at least once a
year.

Universitas Indonesia

Universtitas Indonesia also educate its university students. Universitas

Indonesia has a course called cooperatives, where the university students are
taught about cooperatives and there is a program where the students that enroll in
the cooperative course will visit a cooperative to learn from it.

Conclusion

In conclusion, the government of Indonesia prefers to encourage

cooperatives as the main form of economic entity, because it is based on kinship
principle, so it benefits all the members of the cooperative, leading to an equal
increase of welfare to the citizens of Indonesia. This is one of the main reasons
why the knowledge of cooperatives must be spread to the people of Indonesia.
There are four types of people that needs different minimum levels of education
regarding cooperatives, they are: People outside of the cooperative/Nonmembers,
Members, Administrators/Management, and Supervisors. The minimum levels of
education increase from one type to the next type, because from one type to the
next they have an increased responsibility and relationship to cooperatives. There
are already efforts of teaching to the people cooperatives. There is no cooperative
education program in Indonesia that has the cooperative topic integrated to the
programs like the co-op program from the University of Waterloo. The
government of Indonesia may take the University of Waterloo as an example to
implement a program like their education program.
Attachments

Figure 1
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