LENTERA HUKUM Vol. 8 Issue 2 (July 2021) - Forthcoming Issue
These articles have been peer-reviewed and accepted for publication in LENTERA HUKUM, but are pending final changes, are not yet published, and may not appear here in their final order of publication until they are assigned to issues. Additionally, titles, authors, abstracts, and keywords may change before publication.
Cooperative's Identity Perspectives: Status Quo Issuance of Products to Non-Member Communities
ABSTRACT: Regulations in the business activities of savings and loan cooperatives that allow cooperatives to collect funds from prospective members result in the possibility of issuing products to non-member communities. This writing analyzes that the practice of issuing products to non-member communities is a deviation of cooperative’s business activity based on the laws and regulations in the cooperative sector and eliminates the identity of the cooperative in the form of the principle of membership, which is the specialty of the cooperative and the purpose of a cooperative business entity for the welfare of its members. The research method used in this paper is a normative juridical approach, which aims to find legal principles and theories which are then applied in practice. This research is descriptive-analytical by explaining, describing, and correlating legal rules and theories with the problems to give a systematic understanding regarding the raise funds business from prospective members by paying attention to the cooperative regulations, objectives, and principles of membership in cooperatives to the practice of issuing products to non-member communities that deviate from statutory regulations does not arise. This writing also provides an understanding of the preventive efforts that can be carried out by savings and loan cooperatives in performing their business and the government, which is authorized to carry out its supervisory function on the practice of issuing products to non-member communities based on the regulations in the cooperative sector.
KEYWORDS: saving loan cooperatives; prospective member; supervision.