Meaning of Institutions, Types, and Examples Owned by Government & Private Sector Along with the Differences

Kapanlagi.com - Hearing the word institution is certainly not a new thing. Because the use of the word institution often appears in the mass media. In Indonesia itself, there are various institutions, whether owned by the government or private sector.

The definition of an institution refers to a body, institution, or business entity that operates in a certain field that provides services to the public. Therefore, institutions also have several types that are spread throughout Indonesia.

But do you already know what the meaning of institution really is? Understanding the meaning of institution is certainly important for you to know. Because by knowing the meaning of institution, you can differentiate it from other business entities.

Well, below are some explanations about the meaning of institution that have been summarized by kapanlagi.com from various sources.

1. Meaning of Institution in General

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Institution is a term for a body or organization that operates in a certain field and carries out certain tasks. You may often hear the word institution, but do you know the meaning of institution in general?

If we refer to the Great Dictionary of the Indonesian Language (KBBI), the meaning of institution is a general government body, such as an office or position. There is also a definition of institution in KBBI called a level or stage.

Based on the meaning of institution, it can be concluded that the meaning of institution is a government or private body that has a specific task to serve the needs of the community at large. In other words, the meaning of institution in general is a business or organization that operates in a specific field and provides a number of services to the community. That is the explanation of the meaning of institution in general that you need to know.

2. Types of Institutions According to Ownership

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Some of you may have heard the word institution referring to the government sector. Well, government institutions are among the types of institutions that you need to know. Meanwhile, it's not just the meaning of government institutions, because there are also other non-governmental types of institutions that are important for you to understand. Where the meaning of institution and its types, if classified according to ownership, can be categorized as follows:

1. Government Institutions

The meaning of government institutions is bodies, organizations, or organizational units owned by the government. Where the meaning of this institution is spread across various regions that have special tasks and responsibilities to provide services to the community. For various operational government institutions, the main capital comes from taxes, levies, subsidies, and others that are used as best as possible to provide services to the community. The budget of these government institutions can be open to the public or known to the community.

2. Private Institutions

The meaning of private institutions is certainly the opposite of government institutions. Because the ownership of private institutions is owned by private individuals or groups, shares with the aim of getting maximum profit. Where the budget of these private institutions is closed.

3. Types of Institutions According to Function and Responsibility

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In addition, there are also several types of institutions grouped based on their function and responsibility. Let's find out what types of institutions are in accordance with their function and responsibility.

1. Vertical Institutions: The meaning of vertical institutions is a type of institution that consists of non-departmental agencies spread across different administrative regions. Where the existence of these vertical institutions has a role so that a state institution can be divided according to its territorial jurisdiction. Among the examples are the police, regional police, or district police and others.

2. Horizontal Institutions: The meaning of horizontal institutions is a type of institution that has a specific task but has various functions in each of its agencies. Therefore, some institutions in this horizontal institution group are separated based on their functions. However, these institutions also have the same position. For example, legislative, judicial, executive agencies, BPK, and others.

3. Supervisory Institutions: The meaning of supervisory institutions is a type of institution that is tasked with overseeing a specific work area. For example, there are institutions that oversee the economy, agriculture, and others.

4. Examples of Government Institutions

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After knowing the meaning of institutions, also find out what types of government institutions there are. Where various examples of government institutions below are very close to the area where we live. Because these government institutions are spread throughout Indonesia. Let's find out examples of government institutions as follows.

- Supreme Audit Agency (BPK).

- Attorney General.

- Judicial Commission (KY).

- Meteorology, Climatology, and Geophysics Agency (BMKG).

- Ministry.

- Secretariat of state institutions.

- Indonesian National Police.

And others that are quite diverse and spread across almost all regions of Indonesia. Where government-owned institutions are also grouped according to central institutions or regional government institutions.

5. Examples of Private Institutions

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Meanwhile, to better understand the meaning of private institutions, below are some examples of private institutions. Let's check out what private institutions you need to know.

- BCA Bank.

- PT Astra International.

- PT Indofood Sukses Makmur.

- PT HM Sampoerna.

- Unilever.

And others.

6. Differences Between Government and Private Institutions

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There are several notable differences between government and private institutions that you can easily recognize. Therefore, it is quite important to know what the differences are between government and private institutions.

Looking at the definition, the difference between the two lies in ownership. Where if it is a government institution, then ownership is owned by the government or managed by the state. Whereas private institutions are owned by private parties. In addition, the capital of government institutions comes from taxes or subsidies that have been budgeted by the state.

Meanwhile, the capital of private institutions comes from individuals or a group of people who invest in shares. If seen from their goals, government institutions are not aimed at profit. While private institutions aim to obtain maximum profit for business operations and return on investment. In terms of budget, government institutions are open. While private institutions are closed.

That is an explanation of the meaning of institutions that you need to understand. Hopefully, it can make it easier for you to know the meaning of institutions and their types.

(kpl/gen/nlw)