Dynamics of Sharia Cooperative Regulation in Indonesia

Abstract

The development of Sharia Cooperatives in Indonesia has experienced a significant increase. Islamic cooperatives are one of the alternatives for some members who will build cooperatives based on several sharia principles. The establishment of sharia cooperatives has encountered conflicts, which are not only in Law Number 25 of 1992 on Cooperatives but are also regulated in Law Number 1 of 2013 concerning Micro Financial Institutions. The formulation of the problem of this research is to find legal clarity in the registration and establishment of a sharia cooperative legal body. The research system used in reviewing the registration and establishment of the legal body of Islamic cooperatives uses normative legal research, which is called library research. From the results of this research, the establishment of a sharia cooperative legal body still refers to Law Number 25 of 1992 concerning Cooperatives as replaced by Law Number 11 of 2020 concerning Job Creation. This is because the Microfinance Institution Law only states that the cooperative is a form of MFI legal entity and does not control in detail the cooperative. This system uses statutory provisions as special legal material and is supported by secondary legal materials in the form of books and journal articles.