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private sectors. However, this local public service with Local Public Enterprise profit must
operate in 3 types:

= Independent operation separated from the local government’s operation as
non-entity;

= Operations through the enterprises as a legal private entity, local governments
as shareholders with authority of governance (the most popular operation), and
operated with the concept in CSR (Corporate Social Responsibility - CSR)

= Operations through the enterprise of the local public entity separated from the

local government organization, but funded and controlled by the local
government.

2) Social Enterprise (SE) is a business that does not aim for the maximum profit for the
shareholders different from a private company, but its operation is to meet social and

environmental demand of the community or local members such as public service
development, economy development, community development, and public care. Social
enterprises must be self-reliant, not the burden of central and local governments, and add

more flexibility in the public services. The personnel in the service of Social Enterprise and the
user should have close relationship and engage in the operation of the enterprise. The social
enterprises may include: 1) Social Affairs, directly initiated by the local government, or

2) social affairs of the private sector, supported by local governments.

4 Types of Structure of Social Enterprise as a Legal Entity:

= Employee ownership
The members of the organization are the shareholders and run the operation of the
social affairs.

= Co-operatives

The organization is established by the Co-operative Act and operated through
shareholders by the principles of democracy.

= Social Firm
The organization is an incorporated company under the laws of business

establishment and aims at activities relevant to public interest only.

= Trading Charity
The organization is a foundation established under the laws of the foundation. The
foundation can carry out activities for Local Public Enterprise or for profits and the

profits from the operation will be used for social development.

The goals and objectives of operating Local Public Enterprise and Social Enterprise by
the local governments must be taken into account before selecting types of public services.
The 4 dimensions are to be considered: