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The Government was determined to make the step and strategic policy for the national economy is growing and is growing at a reasonable and proportionate. The commitment was made to prioritize the empowerment of cooperatives, small and medium enterprises.

In line with strategic policy to cultivate the national economy, Happenings and the ins and outs of co-operatives, would need to be kept informed to the public. That way, the cooperative as one economic institutions will be more to be understood and perceived benefits by the community.

To actualize this commitment, the government provide convenience to the public to develop through a cooperative effort. As the container business development, cooperatives are expected to improve the welfare of members at a growing spirit of economic democracy in society.

Various facilities have long cultivated the government. One of them by replacing the Presidential Instruction No. 4 / 1984 by Presidential Instruction No.18/1998 which were followed by the release of Decree No.139/1998. Such provisions essentially provide convenience to the public to establish cooperatives. Communities more flexibility to determine the scale / type of cooperative effort in accordance with the interests of members, without being tied to the name and work area cooperatives. In addition, the ratification deed cooperatives, also made easier, which is conducted by officials of Ministry of Cooperatives and Small and Medium-level Regency / Municipality.

But according to the time demands for equal legal power cooperative with the deeds of other business entities, cooperatives deed must be made by the Notary. Furthermore, the Ministry of Cooperatives and SMEs signed a memorandum of understanding (MoU) with the Indonesian Notaries Association (INI) on May 4, 2004, and issued Decree No. 98/KEP/M.KUKM/IX/2004 on Notary Deed For Makers Cooperative. So there is a change in the procedure of establishment of cooperatives is the process of making the deed of establishment, amendment and other deeds relating to the cooperative as a legal entity made before a notary. This is intended to improve the quality of legal services to the community.

In essence, based on the decree, the establishment of cooperative procedures involving notaries were still following the procedure. There are only a few steps that involve a notary, namely:

a. Meeting of the formation of cooperatives in addition to at least 20 people to invite prospective members, village officials, cooperative officials also invited the notary who has been appointed the founder of the cooperative, the notary who has authorized to execute the office in accordance with the position of notary, domiciled in the territory of the cooperative is located, and has a certificate of proof have followed the debriefing in the field of cooperatives signed by the minister of cooperatives and SMEs.
b. Notary who has made a deed of establishment of cooperatives in accordance with the legislation in force then read out and explained its contents to the founders, members or their proxies before signing the deed.
c. Then the deed of establishment of cooperatives that have been made public notary deed maker cooperative officials conveyed to the cooperative to request approval, in accordance with existing regulations.
Definition and Principles of Cooperation
Cooperative is a business entity consisting of a cooperative or a legal entity with bases its activities on the principle of cooperative movement as well as the people's economy is based on the principle of kinship.
All Cooperatives in Indonesia are required to apply and implement the principles of cooperatives, as follows:
a. Membership is voluntary and open.
b. Management conducted democratically.
c. Distribution of net income is fairly comparable to the size of the business services of each member.
d. Giving limited fringe benefits to capital.
e. Independence.
f. Cooperative education.
g. Cooperation among cooperatives.
Shape and Position
a. Cooperative consists of two forms, namely Primary Cooperatives and Secondary Cooperatives.
b. Primary Cooperative is a member of a cooperative, formed by at least 20 people.
c. Secondary Cooperative is a cooperative whose members Bodies Cooperative Law, which is formed by at least three Cooperatives that have been incorporated.
d. Formation of Cooperatives (Primary and Secondary) is done with the deed of incorporation containing the Articles of Association.
e. Cooperatives have a domicile in the territory of the Republic of Indonesia.
f. Cooperative obtain legal status after the deed of establishment approved by the government.
g. In Indonesia there are only two business entities that are recognized position as a legal entity, namely Cooperatives and Limited Liability Company (PT). So, position / status as a Cooperative cooperation with PT.

Preparation Establish Cooperative
a. Members of the public who will set up a cooperative must understand the intent and purpose of cooperatives and business activities to be carried out by cooperatives to increase revenues and benefits as possible for members. Basically, the cooperative was formed and established on the basis of similarity of economic interests.
b. For the people who will set up a cooperative to obtain understanding, purpose, goals, organizational structure, management, principles of cooperatives, and cooperative development prospects, then they can ask for counseling and education and training from the Office of the Ministry of Cooperatives and Small and Medium-local.

Cooperative Formation Meeting
a. The process begins with the establishment of a cooperative Cooperatives Establishment of the meeting by members of the public who become the founders. At that time they have to prepare the articles of association, determining the type of cooperative and its membership in accordance with the business activities of cooperatives that will establish, develop business plans, and initial balance of the cooperative. Basis for determining the types of cooperatives are common activities, interests and economic needs of its members. For example, the Cooperative Savings and Loans (KSP), Consumer Cooperatives, Cooperative Producers, Marketing Cooperatives and Cooperative Services.
b. Implementation of the founding meeting that was attended by the founders is stipulated in the Minutes of Meeting of the Formation and Establishment Act which contains the Articles of Association of Cooperatives.
c. Where appropriate, and at the request of the founders, the Officials of the Department of Cooperatives and Small and Medium Enterprises in the domicile of the founders may be required to be present to assist the smooth running of meetings and give necessary directives.
Validation of Legal Entity
a. The founders of cooperatives applying for approval of deed in writing to officials, attaching: i) Two copies of deed cooperative enough one of them stamped (attached Articles of Association of Cooperatives). ii) Minutes of Meeting of Formation. iii) inject capital letter proof. iv) The original plan of business activity.
b. Application for approval of Deed of Establishment to officials, depending on the form of a cooperative established and wide area cooperative membership is concerned, with the following requirements: i) The Head Office of the Ministry of Cooperatives and Small and Medium Regency / Municipality of deed endorsed cooperative whose members reside in the territory of District / Municipality. ii) The Head Office of the Department of Cooperatives and Small and Medium provincial / IN endorsed deed of Primary and Secondary co-operatives whose members reside in the province / DI concerned and Primary Cooperative whose members reside in several provinces / DI, but the cooperative is domiciled in the territory of the Regional Office concerned. iii) The Secretary General of the Ministry of Cooperatives and Small and Medium Enterprises (Centre) approve the deed of Secondary Cooperative, whose members reside in several provinces / IN.
c. In terms of the deed of ratification request was rejected, the reason for rejection was told by officials to the founders in writing no later than three months after receipt of the request.
d. Against the refusal of ratification of the founders of the deed may submit a request back in time within one month from the receipt of rejection.
e. The decision to re-submission of the request is given within a maximum period of one month after the submission of the request again.
f. Ratification of deed granted in a maximum period of three months after receipt of request for endorsement.
g. Ratification of the deed was published in State Gazette of the Republic of Indonesia.

Cooperative Association
Cooperative Association for at least contain the following provisions:
a. List the name of the founder.
b. Name and place of domicile.
c. The aims and objectives as well as business.
d. Provisions concerning the membership.
e. The provisions concerning the Meeting of Members.
f. Provisions concerning the management.
g. The provisions concerning the capital.
h. Provisions regarding the establishment period,
i. The provisions concerning the distribution of net income.
j. The provisions concerning sanctions.

These amendments must be made based on the decision Cooperative Meeting of Members held for that, and shall make minutes of meeting Member Cooperatives amendment. To changes in the Articles of Association relating to the merger, division, and changes in the field of cooperative effort sought approval to the government, by submitting in writing by the board to the Head Office of the Ministry of Cooperatives and Small and Medium for Primary and Secondary Cooperatives or local scale to the Minister of Cooperatives and Small and Secondary Education for Secondary Cooperatives nationwide.

Finally, the people who founded and later became members of cooperatives or activity must have the same economic interests. That means that not every person can set up or become members of cooperatives in the absence of clarity activities or economic interests.

Interpreted the same economic activity, have the same profession or business, while the same economic interests have interpreted the same economic needs. The people who will set up a cooperative is not in a state disability law, that is not serving or involved problems or legal disputes, both in civil and criminal. Businesses that will be implemented by the cooperative must be economically feasible. Economically feasible means that the business will be managed in an efficient and capable of providing economic benefits for its members.

Alone should be enough available capital to support business activities to be carried by the cooperatives. It was intended for cooperative activities to be carried out without closing the possibility of obtaining assistance, facilities and loans from outside parties.

Stewardship and management must be tailored to the business activities that will be undertaken to achieve efficiency in the management of cooperatives. Please note those who will be appointed / elected to the board should be someone who has the honesty, ability and leadership, for cooperative established that early on has had a powerful stewardship.