The establishment of the FORMASI initiated from dialoque forum between DEKOPIN and number of NGOs as part of program for cooperative development. The forum become official through a letter of agreement officially issued by DEKOPIN on February 26th 1986. Afterwards, a Baseline Survey on non KUD cooperative and in-formal cooperatives at 14 provinces on January until March 1986 were conducted by this Dialoque Forum as their first activity. Furthermore, the result has showed that there is a demand for cooperative development program which directly managed by NGOs.

FORMASI was established by 10 NGOs namely: DEKOPIN, BK3I, PEKERTI, LPPSE, LSP, PPMA, Bina Swadaya, Bina Desa, BKWK, and PIP with a purpose to make a stable forum. In order to increase its capacity, FORMASI is becoming authorized organization as a foundation.

In its journey, FORMASI changed its name and form as a way to adjust its orientation. To leverage the bargaining position as a cooperative development forum, FORMASI (Forum Pengembangan Koperasi - Forum for Cooperative Development) had officially changed its name into FORMASI INDONESIA (Forum Gerakan Pengembangan Koperasi Indonesia - Forum for Indonesian Cooperative Movements) and its legal entity through Rapat Anggota Luar Biasa (Extraordinary General Assembly) on September 2002, become an association considering that this forum is a membership based organization.