is a business entity consisting of the persons or legal entities basing on activities based on the principle of cooperation as well as people's economic movement based on the principle of the family. Koperasi aims to improve the life of its members.
Based on such understanding, which can become members of Koperasi are:
Individuals, that is, those who voluntarily become members of the Koperasi;
Koperasi legal entity, which is a Koperasi that are members of Koperasi that have a broader scope. In the Statement of Financial Accounting Standard (SFAS) No.. 27 (Revised 1998), stated that the main characteristics that distinguish Koperasi with other business entities, namely members of the Koperasi has a dual identity. Dual identity means a member of the Koperasi is the owner and user of services of the Koperasi.
Generally, Koperasi are controlled jointly by all members, where each member has equal voting rights in any decisions taken Koperasi. Profit sharing co-operatives (commonly called Business Profits or SHU) is usually calculated based on the member's share in the Koperasi, for example by making large dividends based on purchases or sales made by the member
According to Law no. 25 1992, Article 5 mentioned the principle of Koperasi, namely:
- Membership is voluntary and open
- Management conducted in a democratic
- Distributions of Business (SHU) is conducted in a fair proportion to his services each member's business (share of such member in the cooperative)
- Limited provision of remuneration to capital
- Koperasi related education
- cooperation among different Koperasi