The Fluctuation in the Regulation of Islamic Cooperatives in Indonesia
Keywords:
Management, Cooperatives, Islamic CooperativesAbstract
Islamic cooperatives in Indonesia was first regulated by the Decree of the State Minister for Cooperatives and Small and Medium Enterprises of the Republic of Indonesia Number: 91/Kep/M.KUKM/IX/2004. This decree provided guidelines for implementing Sharia financial services cooperative business activities. Subsequently, the Minister of State for Cooperatives and Small and Medium Enterprises issued the Regulation concerning Standard Operational Guidelines for the Management of Islamic Financial Services Cooperatives and Cooperative Islamic Financial Services Unit Number: 35.2/PER/M.KUKM/X/2007. These regulations addressed the absence of specific provision regarding Islamic cooperatives in the Cooperative Law Number 25 of 1992. Islamic cooperatives were eventually regulated in the Law Number 17 of 2012 concerning Cooperatives. However, this law was later overturned by the Constitutional Court. The Government later introduced Regulation in Lieu of Law No. 02 of 2022 concerning Job Creation, following the order from the Constitutional Court Decision. This regulation was subsequently enacted as Law Number 6 of 2023 concerning the Stipulation of Government Regulations in lieu of Law Number 2 of 2022 concerning Job Creation. In this normative legal research, the focus was on the application of positive law principles or norms. Statutory approach, conceptual approach, and historical approach were employed to descriptively analyzed legal materials that were collected through a literature search. The frequent changes in regulations created legal uncertainty and hindered the development of Islamic cooperatives in Indonesia. The current regulations at the law and cooperative levels were expected to allow business entities to operate based on Islamic principles, thereby fostering the growth of cooperatives in Indonesia with the largest Muslim population.References
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