THE ESTABLISHMENT OF INDUK KUD decided at Pusat KUD meeting of Java-Bali on November 8 in Jakarta, with main reason as follows:

a. There are common interests at the national level which is felt even less efficient if done separately by Pusat KUD, such as fertilizer problem solving that can be destroyed by non cooperative at any time. Meanwhile, fertilizer for example, is the backbone of Pusat KUD activities to improve services to KUD.

b. Pusat KUD obligation to foster KUD under law No. 12, 1967 nationality requires an integrated strategy with the government’s program, would, however require a forum between government’s interests and national movements.

c. Involvement of Pusat KUD in Pelita III should be more increasing and urgent.

IN ADDITION, the formation of Induk KUD also has a background, as follows:

a. At that time, there is an opportunity for KUD to export farmer’s products to foreign country, for example cassava product (dried cassava). In order of affectivity and efficiency, the role of this exporter done by Induk KUD.

b. Induk KUD also needs good international relations in the context of marketing member’s products overseas. For that, Induk KUD associated with the overseas though DEKOPIN, as DEKOPIN is a member of ICA (International Co-operative Alliance).

c. Education and training. Through Induk KUD, KUD give attention and great support to the activities of training in the country. For example role and support of Induk KUD (moral and material) in establishing Ikopin (Indonesian Co-operative Management Institute).