This Is The Urgency Of Revision Of The Cooperative Bill To Be Ratified Immediately By The Government

Illustration (Photo: Doc. Antara)

JAKARTA - The government is deemed necessary to immediately complete the revision of the Law on Cooperatives.

The Ministry of Cooperatives and SMEs (Kemenkop UKM) itself targets the revision of the regulation to be completed by the end of 2023.

Universitas Brawijaya academic Herman Suryokumoro said that one of the urgencys in discussing the Draft Law (RUU) on Cooperation is related to legal sanctions against cooperatives that violate and harm the community.

Herman said, cooperatives are a form of business legal entity mandated by the 1945 Constitution, so where most businesses in cooperatives are in the form of Savings and Loans Cooperatives (Usaha Savings and Loans (KSP/USP). Meanwhile, he said, cooperatives often experience irregularities in their operations.

"There are many irregularities in the practice of operating in KSP/USP business activities that harm the community. I conclude, it is time for criminal sanctions to exist and it is urgent to be carried out, because cooperatives themselves must comply with the constitutional mandate," he said in his official statement, quoted Thursday, December 21.

He also highlighted the condition of the majority of cooperatives in Indonesia, which is mostly even nearly 100 percent doing business in the USP sector, despite the real conditions on the ground, the cooperative USP business is plummeting.

"Why? Because you have to compete with banks. In its development, financial crimes are committed and driven by people in cooperative clothes. I read during the fasting month, there was a lot of news about cooperative embezzlement funds committed by the manager or management of cooperatives, it is certain that the small community will suffer losses," said Herman.

For example, it is a problem with the Indosurya Cooperative. Herman considered the problem very massive.

In fact, the impact is also on cooperatives throughout Indonesia.

Plus there are several indications of Indonesia's primary cooperative making basic deposits indicated by the case.

"So, it is time in the future that stricter sanctions, legal certainty, and guarantees for community members are regulated. Because there are still KSPs serving non-members, making the potential for losses in the community wider," he said.

Furthermore, Herman said, the main points of regulating criminal sanctions for cooperatives have also been regulated in the previous Cooperative Law, namely Law (UU) Number 79 of 1958 concerning Cooperatives Association, Law Number 14 of 1965 concerning Cooperatives, and Law Number 12 of 1967 concerning Cooperative Principles.

Then, there is Law Number 25 of 1992 concerning Cooperatives, Law Number 17 of 2012 concerning Cooperatives, and Law Number 25 of 1992 concerning Cooperatives until now.

With these several regulations, Herman hopes that the new Cooperative Bill will continue to refer to Law Number 25 of 1992 concerning Cooperatives which he considers to be still in accordance with current conditions.

"Only a small part of the articles need to be adjusted. Therefore, we propose to use the law, but by updating the latest developments, so that the Cooperative Bill is more flexible and streamlined," he said.

In addition, he also suggested that the Cooperative Bill regulate only main and substantial matters related to aspects of identity, organization, capital, governance, business, government role, and criminal provisions in the life of Indonesian cooperatives.

Then, the provisions governing cooperative organizations and businesses, as referred to in letter (a) are guarded so as not to contradict the existing regulations, as stipulated in Law Number 11 of 2020 which was amended by Perpu Number 2 of 2022.

Furthermore, it is also proposed not to repeat or re-uplift the provisions that have been canceled by Constitutional Court Decree No.28/PUU-XI/2013.

Not only that, Herman also highlighted the distribution of cooperative types into close loops and open loops based on the Law on Financial Sector Development and Strengthening (UU P2SK), where supervision is divided among the Financial Services Authority (OJK).

According to Herman, if cooperatives want to be more independent, supervision of cooperatives should only be carried out in the close-loop type so that supervision is fully carried out by the Ministry of Cooperatives and SMEs.

"I agree that the open loop cooperative is being investigated by the OJK. Frankly, if the cooperative is correct, why should you be afraid of the OJK, I should ask those who reject it," he added.