KUD (Rural Co-operative) starts from Koperta (Agricultural Co-operative) and BUUD (Pre Co-operative). In 1963, government took the initiative of the formation of Koperta among farmers, whose products are mainly targeted to meet the needs of basic foodstuffs, especially rice. Following government regulation at that time, there are four Koperta levels, namely: Koperta at the village level, Puskoperta at district level, Gakoperta at provincial level, and Inkoperta at national level.
In the year 1966-1967 was developed BUUD (Pre Co-operative) as a follow-up Koperta. BUUD, is a merger between the Co-operative Agriculture and Village Co-operative within a village unit, the so-called agro-economic regions with an area 600 to 1,000 hectares of paddy fields.
BUUD main task is to help farmers’ producers to overcome the problem in the production process including loans and provisions for the results), the provision of production facilities, as well as processing and marketing products. In the framework of this task, BUUD purchase grain, grind and put rice up to Dolog (State Logistics Agency), and a become fertilizer distributor. Then, the concept of co-operatives in the rural development is brought together into BUUD/KUD.
Then, born KUD which gradually replace the role of the BUUD. In the first years development of cooperatives were advancing rapidly. The presence of cooperatives is not separated from the government strategy, particularly in the context of food supply. Since the beginning of the development of KUD, the government set a strategy of three stages of development of KUD, namely: centralization, decentralization, and autonomy (independence).
Along with coaching and development strategies by KUD, among board of KUD occurred to form Pusat KUD (secondary cooperatives). This is because the previous experience in developing co-operatives faced many problems, such as: businesses, organizations, or capital that cannot be solved by them independently. With this background, the board members of KUD in some areas initiate the formation of Pusat KUD. First Pusat KUD formed is Pusat KUD Metaram DI Yogyakarta (1973), followed Pusat KUD West Java (1974), Pusat KUD North Sumatra (1974), Pusat KUD Central Java (1974), Pusat KUD Lampung (1974), Pusat KUD Bengkulu (1975), Pusat KUD South Kalimantan (1975), Pusat KUD East Java (1975) and so on.
The idea to establish Induk KUD formally appears for the first time at the National Consultative Forum (Munaskop) X on 7 to 8 November 1977 in Jakarta. In the Munaskop forum, Soenarjo from Pusat KUD Metaram DI Yogyakarta who were representative from Dekopin of Yogyakarta and Elyas from Pusat KUD West Java who were representative of Dekopin West Java
suggested that Munaskop can stipulate a recommendations concerning the establishment of Induk KUD, since almost all provinces have also established Pusat KUD. Then, to realize the idea of forming Induk KUD, from 25 until May 26, 1979 a meeting forum was held among Pusat KUD in Tretes, East Java, called the “Annual Meeting of Puskud throughout Indonesia I”. The meeting was initiated by the Board of Pusat KUD East Java which
attended by 8 Pusat KUD delegations, namely: East Java, West Java, Yogyakarta, Central Java, Bali, North Sumatra, Aceh, and North Sulawesi. Later, the meeting was more constructed in the meeting which was attended by all Pusat KUD in Java and Bali on 8 November 1979 in Jakarta.
Exactly on 12 November 1979, Induk KUD was established in meeting held at the Office of Minister of Co-operatives, 4th floor, Jl. M.T. Haryono, Jakarta. Induk KUD formation meeting was attended by 8 delegations of Pusat KUD, namely: Metaram DI Yogyakarta (Soenarjo), East Java (Ir. Sahri Muhammad and Drs. Harnowo), West Java (M. Yahya Suryanegara), Central Java (Ahmad Makmun), Bali (I Wayan Tegeg, B.Sc.), Harapan Tani North Sumatra (Ruslan Girsang), Aceh (Drs. Misbach Hasan), and North Sulawesi (Eddy A. Illat). Meanwhile, representatives from government are: Director Binor Ditjenkop (JB. Ismartono, SH), Director Binus Ditjenkop (Mamiet Marjono), and expert staff from Undersecretary of Co-operative Affairs
(Drs. Soebiakto Tjakrawerdaya). And for the first time, Induk KUD were officing at Sarinah Building, 9th floor, Jl. M.H. Thamrin, Jakarta.
Exactly on the 33th Co-operative Day, July 12, 1980, Induk KUD was endorsed by the government as a Legal Entity of Cooperative, with the number 8282.
Respectively, Presidents who had led Induk KUD, namely, M. Yahya Suryanegara (1979-1980), Lili Kusumah (1980-1987), H.A. Latief (1988), H.M. Rapi’i (1988-1993 and 1993-1998), H. AM Nurdin Halid (1998-2003 and 2003-2005), Herman Wutun YL (220-2008 and 2008-2013).