ABSTRAK :rnrnRevision of Law No. 25 of 1992 to Act No. 17 of 2012 on Cooperatives has a fundamental and significant change. The definition of a cooperative as a cooperative business entity into cooperative as a legal entity, carries implications for the procedures, requirements and ratification institutional establishment of cooperatives, and similar institutional treatment with other business areas such as private and state-owned enterprises .rnThe implications of these changes bring prospects for the co-operative development, because cooperatives establishment based on the real needs of cooperative economic venture capital in accordance with the purpose of its founding. While the challenges faced in implementation of laws is the severity of the terms and conditions, procedures for the establishment and ratification of cooperative legal entity. It will be an obstacle for cooperative was establish and people who want to set up, but not proper economically.rnThis article is intended to (1) discuss how the prospects and challenges of cooperative development and (2) formulate policy suggestions cooperative development of post- law No. 17 of 2012.