Saturday, July 8, 2017

Cooperation Among Economics Agents and The Informal Sectors of Corportaion

The Cooperation Among Economic Agents

In daily activity, we find many forms of cooperation carried out among BUMN/BUMD, privates, and cooperaion/
1. The form of cooperation run by BUMN/BUMD with cooperation as follows.
  • Cooperation function as the payment location of electrie bill.
  • Cooperation by village Unit Cooperation (KUD) distributes fertilizer and farming tools from fertilizer factory production.
  • KUD holds the purchasing of farmers unhulled rice in the field which is forwarded to BULOG.
2. The form of cooperation run by private company and cooperation as follows.
  • Cooperation distribute the consumption products as the products of the private industry.
  • Cooperation coordinate the products of small industries to be marketed to the wholesaler.
3. The form of cooperation carried out by BUMN/BUMD with private company as follows.
  • To hold the collective exhibition of products of production.
  • BUMN and BUMD develop small scale industries.

The Informal Sectors of Cooperation

Informal Sectors of Corportaion
Examples of the informal sector of corporation (pixabay.com)
The existence of BUMN does not make the private companies and corporations do not have any other activity. Besides three formal sectors of corporation, people have the right of proper occupation and livelihood. It is stated in the section 27 of 1945 Constitution as follows.

"Every citizen has the right of proper occupation and livelihood for humanity."

This section strengthen that each member of society has the right to determine his occupation in accordance with his talents, ability, and interest. The occupation does not tend to be in contradiction with the rules, laws, and norms prevail in society. The member of society can determine the occupations from the informal sector of corporation. Informal sector of corporation becomes the fact in our daily life that develops in society. It overwhelms some sectors, those are agriculture, husbandry, fishery, trade, small industries, and service.

Informal sector of corporation is brought out to support the realization of nation's prosperity. Although it holds small production, but informal sector of corporation gives significant contribution in economic development.

The figure above perform the informal corporation activity. Other examples of the informal corporation as follows.
  1. The traveling merchants who offer their selling products, such as ice, medicine, bakso, toys, and so on. They do not have permanent location to sell their products. They come to the consumers to offer their products.
  2. Public transportation and pedicab drivers who offer service of transportation.
  3. The food seller who fulfills consumers necessities of food.

The Difference of Formal Sector and Informal Sector

Matters
Formal Sector
Informal Sector
Capital/assets
Relatively reachable
Unreachable
Organization
By birocracy (based on the rule)
Informal (like family organization)
Credit
From legal monetary institution
From illegal monetary institution
Autonomy
Depends on the government’s protection
Autonomy
Product supply
The large amount in good quality
The little amount with changeable quality
Work relationship
Based on work contract
Based on trust

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