Definition
Law. 25/1992 concerning Cooperatives stated that the Cooperative is a business entity consisting of individuals or legal entities with the bases cooperative activities based on principle;
1). Membership is voluntary and open.
2). Management is done democratically.
3). Distribution of the remaining business was fairly comparable to the size of the business services of each member.
4). Provision of fringe benefits that are limited to capital.
5). Independence, as well as well as people's economic movement based on the principle of kinship.
KUD is a social character of economic organization is a forum for the development of rural economic activities organized by and for the community itself.
Other Non-Cooperative KUD include:
1). Marketing cooperatives are cooperatives whose primary business of distributing goods manufacturer, distributor or other merchant to the consumer.
2). Consumer cooperatives are cooperatives whose primary business providing goods in order to serve its members.
3). Cooperative Services is a cooperative whose main activity is engaged in services.
