New Provisions on Large-Scale Cooperatives

In a bid to make large-scale cooperatives more globally competitive, the Minister of Cooperatives and Small- and Medium-Scale Businesses(“Minister”)has issued Regulation No. 22/PER/M.KUKM/IX/2015 on Large-Scale Cooperatives(“2015 Regulation”). The 2015 Regulation sets out indicators and strategies relating to the development of large-scale cooperatives, as well as describing the government’s roles in fostering such entities. [1] Prior to the 2015 Regulation, these same matters were controlled under Ministerial Regulation No. 07/Per/M.KUKM/IX/2011 on Guidelines for the Development of Large-Scale Cooperatives (“2011 Regulation”).The 2015 Regulation is of relevance to all prospective or already existing cooperatives, as well as the government.Large-Scale CooperativesIn order to be classified as a large-scale cooperative, an entity must meet certain criteria as regards its assets and profits. Additionally, the largest portion of a cooperative’s membership should be located in the area of its operations. [2] Several indicators relating to large-scale cooperatives are set out under the 2015 Regulation, specifically: [3]