Committee IV DPD RDPU Regarding Changes To The Cooperative Law

JAKARTA - Committee IV DPD held a Public Hearing Meeting (RDPU) related to the Plan for Amendment to Law Number 25 of 1992 concerning Cooperatives. This is because the Cooperative Regulation in Indonesia is old and needs to be adjusted to the progress of the times.

The statement was made by Fernando Sinaga, Deputy Chairman of Committee IV DPD. He said the Law on Cooperatives itself had undergone many changes and improvements.

"Finally, it was ratified and promulgated by Law Number 17 of 2012 concerning Cooperatives in 2012, but the law planned to replace Law Number 25 of 1992 concerning Cooperatives was then sued by several institutions, so that on May 28, 2013, the Constitutional Court canceled Law Number 17 of 2012 concerning Cooperatives," explained the Senator from North Kalimantan Province, Wednesday, November 13.

He said, in 2015 the DPD through decision Number 04/DPD RI/I/2015-2016 concerning the Draft Law on Cooperatives proposed amendments to the DPR RI to enter Prolegnas. However, regulations related to this Cooperative have not yet been ratified until now, until the discourse on the third amendment to Law Number 25 of 1992 concerning Cooperatives which is a proposal from the Government.

The RDPU was also present, Prof. Dr. Sudarsono Hardjosoekarto, Professor of the University of Indonesia and Prof. Dr. Ir. Lukman M. Baga, Professor of the Bogor Agricultural Institute who is also the Head of the Center for Sharia Business and Economic Studies (CIBEST) IPB University.

Prof. Sudarsono Hardjosoekarto, conveyed that regulations regarding Cooperatives in Indonesia did not encourage productive activities of cooperative members. He said he did not see the existing law providing a very big impetus for the progress of cooperatives compared to other countries.

He offered a solution that can be done by the DPD RI, namely the DPD RI, has a view to modify Article 1 of the Bill on Cooperatives, that Cooperatives must be based on member productive activities. In addition, these multi-party members were replaced, because multi-party parties did not allow academically and empirically to encourage the development of Cooperatives.

"In addition, the DPD RI can encourage the birth of a specisic article to form a Government Regulation that points to the peculiarities of each Cooperative," he explained.

Prof Lukman conveyed that the Cooperative as an anti-capital movement certainly gave birth to people who were not happy. He suspects that there are parties who are trying to hinder cooperatives from advancing.

"Therefore, because of a misunderstanding of the cooperative movement, it resulted in mismanagement with many who intervened in the management of Cooperatives and finally the expected results from the cooperative movement were not optimal," said the Head of the Center for Sharia Business and Economic Studies (CIBEST) IPB University.