INTRODUCTION
The evolution and spread of modern co-operative movement in Europe has often been characterised as a rapid process, that was also influenced by ideologies shared by the participants. However, it may be remembered that only by the end of the 19th century, i.e. one or two generation after the initiation of the first successfully operating co-operatives, more or less consolidated movements of primary and secondary co-operative institution had been firmly established in the European countries. During this period various disappointments and failures were experienced and measures had to be undertaken to avoid such mistakes and to improve the conditions for the development of co-operatives in the future. In this regard the establishment of secondary co-operative business institutions and co-operative federations, the creation of auditing facilities and of consultancy services, the enactment of co-operative law and also the support of governments may be mentioned [1].
A Co-operative as a self help organisation is embedded in community, district or region in where it works. Beside an economic entity, it is a social entity. As social entity it is influenced by the social relationship existing in their area of operation and by the cultural environment reflected in norms and values adhered to by the local population [2]. This paper tries to explain the phenomena of co-operatives in Indonesia through historical reviews and how to make improvement upon this organisation. 

TYPOLOGY OF CO-OPERATIVE
A co-operative society is an association of persons who have voluntarily joined together to achieve a common end through the formation of a democratically controlled organisation, making equitable contributions to the capital required and accepting a fair share of the risks and benefits of the undertaking, in which the members actively participate . This definition covers also groups and associations that are less “formal” than registered co-operatives, provided these groups are based on democratic principles and pursue an economic goal. On the other hand, the definition draws a clear line between co-operatives and capital-based enterprises, community-based organisations and NGOs (although co-operatives and NGOs share certain common characteristics).
The Co-operative models developed by Raiffeisen in Germany, Blanc in France and the Rochdale Pioneers in England have set the pattern for all future developments, defining the effective areas and basic principles of operation. In England (and also Europe in general) the co-operative movement, like trade unionism, was a popular movement that had its origins in the hardship of the working class during the industrial revolution. The low wages and harsh working conditions were aggravated by the high cost of their basic needs in the new environment, as merchants exploited their plight. The co-operatives which were initially formed were thus consumer co-operatives. Credit unions and housing ventures then came later . 
It was a laisser-faire social and economic structure situation in which the Government would have been most reluctant to interfere. The introduction of welfare schemes and even frame work legislation for the establishment of mutual benefit or self-help organisations would have been regarded as heresy in the social milieu of that era. It was only when the economic well-being of a number of employees, in both government and private sectors, was being jeopardised and their efficiency impaired, as a result of their financial encumbrances, which was giving rise to an indebtedness psychosis, that the government took cognisance of the extent of indebtedness among its subordinate staff and considered remedial measures.

HISTORICAL FEATURE OF INDONESIAN CO-OPERATIVE
The first co-operative law was introduced in Indonesia in 1915 on the Netherlands model. In 1927 a revised law, largely based on British-Indian model was issued, and co-operatives began to developed amongst Indonesians. The first Co-operative Department was established in 1935 and this became part of the Office for Co-operatives and Home Trade in 1939. At this time, co-operatives were primarily for thrift and credit and were more or less confined to Java. Half of the members were civil servants, 20 percent tradesmen and only 20 percent farmers. Following independence, a new co-operative ordinance was issued with registered based (as with the 1927 law) on Indian example. Supervision of co-operatives was, however, delegated to co-operative movement’s own organisation. 
In the 1958 a new co-operative law was issued, and in the period 1960-1966 the number of co-operatives expanded rapidly, however they were highly politicised. There was an interventionist government approach. The change of Government in 1966 initially brought a strong reaction in favour of co-operatives that de-officiallised. The co-operative law of 1967, known as the “Law on the Basic Principles of Co-operatives”, made provision for independency. Co-operatives, apart from those in agriculture, were registered and audited by Government, but not actively promoted. The government directed co-operatives (KUD) were viewed as basic unist for Agricultural development, especially since the beginning of the Third Five Year Plan, when a special Minister of Co-operatives was appointed. However, it can be said that the efforts to make the KUD’s a viable instrument for initiating and implementing rural development failed widely. According to Mubyarto one of the reasons for this failure, besides corruption, lack of management capacity and the like, was the fact that the Co-operative as a business enterprise requires economic scale in which unlikely can be achieved [4].
The importance of the co-operative organisation can be viewed at least from two sides, the macro and micro aspects. In most developing countries, from the macro point of view, according to Soetrisno co-operatives are considered as an instrument for promoting development, especially in agricultural and rural sector [5]. This approach has been adopted for many years and has been quite successful in fulfilling the macro objectives. Nevertheless, there are many problems in bringing co-operative into genuine self reliant organisations and to some extent, these have created prolonged dependency. Sicat and Yun suggest that macro objectives are not always based on economic considerations, but as in the case of most developing countries, also based on political, social, as well as cultural aspects. On the other hand, “from the micro point of view, co-operatives are perceived advantageous in small organisation and scattered activities of individual members for gaining economies of scale and as a means for internalising external economies”[5]. In more developed countries, however, co-operatives have a good bargaining position.
This argument has to be based on the function of primary societies as an organisation of people that maintains direct link between members and the organisation. But in fact co-operatives are also a form of business enterprises that contains a development system. Therefore they have possibility to organise a higher degree of integration for better access to the market. There is a strong belief that the co-operative system has strength to unify efforts to make integrated network. Despite the success of co-operatives as has been shown in developed countries and has been demonstrated by certain types of co-operatives such as dairy, we discover however among developing countries, a history of failure in promoting trade network under co-operatives system.

INDONESIAN CO-OPERATIVES IMPROVEMENT
Values principles, ethics and business competence constitute the co-operative for advantage to the members and to the communities in which they operate. Co-operatives put people first; they are member-owned; they are controlled under democratic principles; and they are competitive enterprises which are at least as efficient in their business operations and use of capital as others in the marketplace. Yet, they are not driven by profit, but rather by needs. These important differences from traditional enterprises will enable them to compete and prosper in the new Millennium .
In the case of Indonesian experience, Swasono notes that Indonesian co-operatives co-operate in mobilising economic forces to become a powerful synergy based on mutuality and brotherhood, in all micro, macro, local, regional and mondial level . Indonesian co-operative is very fortunate, that it has been determined to include co-operativism into its constitution, that “the economy shall be organised as a mutual endeavour based upon the principle of brotherhood” . Moreover Swasono emphasises that value of co-operatives a similar with the “economic democracy”. Its economic ideology is also guided by the maxim “from the people, by the people, for the people”. “Mutuality” and “brotherhood”, as stipulated in the constitution, certainly do not only serve as the spirit of the co-operative movement which is loaded with the noble social values of self-help and solidarity. That co-operative movement is not only concern with the efforts to yield more economic added-value for the people but also the socio-cultural added-value [6].
Co-operative values and spirits become more important than ideologies. Member orientation and management efficiency replaces submission to authorities as guiding principles of co-operative leaders [7]. Co-operative action will enable people to organise economic and social services they need. This it relieves the burden of the state and contributes to the success of structural adjustment. It makes people more aware of their freedom and responsible to determine and control their own destiny, thus making democratisation irreversible. It will also strengthen popular participation and decentralised decision-making. This situation may put national development on a broader base.
However, co-operatives need a conducive environment before they can play this beneficial role. This environment requires: 
· A new co-operative development policy that defines the relation between the state and the co-operative movement in a way that respects the principle of co-operative autonomy;
· A new co-operative legislation that translates this policy into legal rights and obligations and guarantees the autonomy of co-operatives; 
· A co-operative administration that confines itself to regulatory functions; 
· The establishment or strengthening of the vertical structure of co-operatives. 
· A system of co-operative support services (mainly education and training, business advisory services and external audit) that is largely managed and financed by the co-operative movement itself [7,8,9]. 

CONCLUSION
Globalisation as powerful restructuring influence is changing political, economic, and social relationship between peoples, organisation and institutions. The world economy is going into a process of deep integration under a management process located in supranational institution [10]. The top-down approach to co-operative promotion has failed everywhere even when it was based on very good intentions. In many countries, this approach has discredited the co-operative movement so much that the term “co-operative” can no longer be used. Preferential treatment of co-operatives in the form of grants, aid, subsidies, monopolies and credit allocations causes distortions which diminish their competitiveness. The role co-operatives can potentially play in fostering development is held to be significant. It is widely agreed that possibilities of co-operatives in this respect are twofold and they are related to a) the actual action they can take towards individual and social development and b) the values which guide such action (solidarity, participation, democracy, self help etc.) [11].

References:
1. Hannel, Alfred , Basic Aspect of Cooperative Organizations and Cooperative Self Help Promotion in Developing Country, Marburg Consult für Selbsthilfeförderung, Germany, 1992 
2. Münkner, H.H, and Trodin, Rolf, Organised Self-help to Solve Housing Problem, Marburg Consult für Selbsthilfeförderung, Germany, 1999 
3. Hassan, Asnawi, Selected Reading on Cooperative Development in Indonesia, Department of Cooperative, Indonesia, 1986 
4. Bongart, Heinz, Self Help Organizations in Rural Java, Verlag breitenbach, Publishers, Saarbrücken, 1989 
5. Soetrisno, Noer, The Lecture-Forum And Monograph Series On Cooperatives Management And Development, No.3, (1-11), SEAFDA, Jakarta, 1991. 
6. Swasono, Sri Edi, SHAPING THE GLOBAL CO-OPERATIVISM, 1ST ASIA PACIFIC CO-OPERATIVE FORUM, 27-28 June 2000 
7. Schwettmann, Jurgen, Cooperative and Employment, Ocasional Discusion Paper 97-1, ILO, Geneva, 1997 
8. Münkner, H.H, Rediscovery of Co-operatives in Development Policy, COOP Dialogue, An ICA ROAP Journal, Vol. 10, No. 1, January 2000, pp. 8-13.
9. Münkner, H.H, Past Present Future Direction of the Co-operative Businesses, has been presented at the Asia Pasific Co-operatives and Small & Medium Enterprises Network Conference, Jakarta, July 14-15, 1997.
10. Caceres, Javiers, Globalization & restructuring of Canadian Wheat Industry in Review of International Co-operation vol.91 No.1/1998, 32-44. 
11. Cracogna, Dante, Consumer Co-operatives in developing Countries, in Düllfer, E and Hamm, Walter, Co-Operatives 505-520,Quilllelr Press, London, 1985