Understanding the Cooperative Movement

Oct 13, 2025 by windailys.com 20 views

Understanding the Cooperative Movement

Cooperative is a people's economic movement that functions as a business entity to realize a just, prosperous, and advanced society in accordance with the national economy. Cooperatives operate based on the principle of kinship and democracy. As a legal entity, cooperatives require a strong legal basis that includes important documents such as the deed of establishment and the articles of association that must be made in the form of authentic deeds by a notary. However, after the decision of the Constitutional Court (MK) No. 28 of 2013, the role of the notary in making a deed of establishment of cooperatives underwent significant changes, where the notary was no longer referred to as a deed in the law governing cooperatives.

The Role of the Notary in the Establishment of a Cooperative

After the Constitutional Court's decision to cancel Law Number 17 of 2012, the notary position as the maker of the Cooperative Establishment Deed became blurred. Law Number 25 of 1992 which applies subsequently does not include the role of the notary in this regard. This certainly causes confusion and challenges for entrepreneurs who want to establish cooperatives. Do they have to keep using the services of a notary? Or are there any other alternative to ratify the Cooperative Establishment Deed?

The role of the notary in the establishment of a cooperative is crucial, as they are responsible for authenticating the deed of establishment and ensuring that it meets the legal requirements. However, with the changes in the law, the notary's role has become unclear, leaving many entrepreneurs uncertain about the process of establishing a cooperative.

Constraints in Ratification of Cooperative Establishment Deed

The process of ratification of the Cooperative Establishment Deed is often constrained by differences in the types and completeness of the required documents. This incompleteness often causes the submission of deeds to be rejected, which in turn resulted in cooperatives not considered as a legal entity. Cooperatives that do not have the ratification of the deed of establishment will be at risk of loss, both for managers and members of the cooperative. Therefore, it is important to clearly understand the terms and procedures needed to get endorsement.

The constraints in ratification of the Cooperative Establishment Deed can be attributed to several factors, including the complexity of the legal requirements, the lack of clarity in the law, and the limited knowledge of the notaries about the cooperative establishment process. This can lead to a high rejection rate of the deed of establishment, which can have serious consequences for the cooperative.

Legal Consequences from the Rejection of Ratification

When the deed of establishment of the cooperative is not passed, the cooperative does not have the status of a legal entity. That is, the cooperative cannot operate legally in the eyes of the law and does not have the right to carry out business activities. This legal consequence certainly has a negative impact on cooperative members and also to the management. If there is a legal problem, cooperative members can experience financial and legal losses, while the management can face adverse demands.

The legal consequences of the rejection of ratification can be severe, including financial losses, legal liabilities, and damage to the reputation of the cooperative. This can have a negative impact on the members and management of the cooperative, and can even lead to the collapse of the cooperative.

Recommendations for Strengthening the Legal Basis for Cooperatives

Based on the results of research conducted, it is recommended that the government make new and comprehensive new laws regarding the establishment of cooperatives. This law must provide a strong legal umbrella for cooperatives as an entity that supports the national economy. In addition, the socialization of procedures, conditions, and procedures for establishing cooperatives needs to be improved so that the community understands the steps needed to establish a legitimate cooperative.

Notaries are also advised to increase their knowledge of cooperatives in order to provide better services to the community. In a situation where the cooperative does not get ratification from the authorized official, the cooperative will be considered not to have a legal entity, which can harm both members and management.

Conclusion

The rejection of the ratification of the Cooperative Establishment Deed made by the Notary after the Constitutional Court's decision resulted in legal uncertainty for the cooperative itself. Therefore, there needs to be a clear and comprehensive arrangement to ensure that cooperatives can operate well and provide benefits to their members. Thus, cooperatives can contribute more optimally in advancing the national economy.

In conclusion, the rejection of the ratification of the Cooperative Establishment Deed has significant consequences for the cooperative, including legal uncertainty, financial losses, and damage to the reputation of the cooperative. Therefore, it is essential to strengthen the legal basis for cooperatives by making new laws and improving the socialization of procedures and conditions for establishing cooperatives.

Q: What is the Cooperative Establishment Deed?

A: The Cooperative Establishment Deed is a document that is required to be submitted to the Ministry of Cooperatives to establish a cooperative. It is a crucial document that outlines the purpose, structure, and operations of the cooperative.

Q: What is the role of the Notary in the establishment of a cooperative?

A: The Notary plays a crucial role in the establishment of a cooperative by authenticating the Cooperative Establishment Deed and ensuring that it meets the legal requirements. However, with the changes in the law, the Notary's role has become unclear, leaving many entrepreneurs uncertain about the process of establishing a cooperative.

Q: What are the consequences of the rejection of the ratification of the Cooperative Establishment Deed?

A: The rejection of the ratification of the Cooperative Establishment Deed can have severe consequences, including financial losses, legal liabilities, and damage to the reputation of the cooperative. This can have a negative impact on the members and management of the cooperative, and can even lead to the collapse of the cooperative.

Q: What are the reasons for the rejection of the ratification of the Cooperative Establishment Deed?

A: The rejection of the ratification of the Cooperative Establishment Deed can be attributed to several factors, including the complexity of the legal requirements, the lack of clarity in the law, and the limited knowledge of the Notaries about the cooperative establishment process.

Q: What can be done to strengthen the legal basis for cooperatives?

A: To strengthen the legal basis for cooperatives, the government can make new and comprehensive laws regarding the establishment of cooperatives. This law must provide a strong legal umbrella for cooperatives as an entity that supports the national economy. In addition, the socialization of procedures, conditions, and procedures for establishing cooperatives needs to be improved so that the community understands the steps needed to establish a legitimate cooperative.

Q: What is the importance of socialization in the establishment of a cooperative?

A: Socialization is crucial in the establishment of a cooperative as it helps to improve the understanding of the procedures, conditions, and procedures for establishing a cooperative. This can help to reduce the rejection rate of the Cooperative Establishment Deed and ensure that cooperatives can operate well and provide benefits to their members.

Q: What can be done to improve the knowledge of Notaries about the cooperative establishment process?

A: To improve the knowledge of Notaries about the cooperative establishment process, the government can provide training and education programs for Notaries. This can help to ensure that Notaries have the necessary knowledge and skills to authenticate the Cooperative Establishment Deed and ensure that it meets the legal requirements.

Q: What is the impact of the rejection of the ratification of the Cooperative Establishment Deed on the members and management of the cooperative?

A: The rejection of the ratification of the Cooperative Establishment Deed can have a negative impact on the members and management of the cooperative, including financial losses, legal liabilities, and damage to the reputation of the cooperative. This can lead to the collapse of the cooperative and have a negative impact on the community.

Q: What can be done to prevent the rejection of the ratification of the Cooperative Establishment Deed?

A: To prevent the rejection of the ratification of the Cooperative Establishment Deed, it is essential to ensure that the Cooperative Establishment Deed meets the legal requirements and is properly authenticated by a Notary. This can be achieved by providing training and education programs for Notaries and improving the socialization of procedures, conditions, and procedures for establishing cooperatives.

Q: What is the future of cooperatives in Indonesia?

A: The future of cooperatives in Indonesia is promising, but it requires a strong legal basis and proper implementation of the laws and regulations. The government can play a crucial role in strengthening the legal basis for cooperatives and improving the socialization of procedures, conditions, and procedures for establishing cooperatives. This can help to ensure that cooperatives can operate well and provide benefits to their members, and contribute to the advancement of the national economy.