Overview

Limited-liability companies undoubtedly represent the most popular legal form of incorporated business entities. However, in this generally more collaborative economic era, cooperatives may represent a more suitable option as this business form emphasizes joint efforts and the kinship principle in a bid to achieve the common goals of the various parties and persons which are associated with such entities.[1] Moreover, the Minister of Cooperatives and Small- and Medium-Scale Enterprises recently revealed that there has been a significant increase in the contribution being made by cooperatives to Indonesia’s Gross Domestic Income, up from 1.71% in 2014 to a figure of 5.10% in 2018.[2] These indicate the enormous potential that cooperatives have in terms of reviving their status and once again becoming a central pillar of the Indonesian economy.[3]