"This is a momentum to revive the people's interest in joining co-operatives," the ministry's Secretary, Arif Rahman Hakim, remarked here on Thursday.
The Co-operative Bill inter-ministerial committee was formed on the basis of Ministerial Decree No. 2 of 2023 and involves representatives across ministries and agencies, including the Financial Services Authority (OJK), Attorney General's Office, Investment Ministry/Investment Coordinating Board (BKPM), and several others.
Hakim stated that the House of Representatives is expected to start the discussion on the co-operatives draft law during the 2023 second quarter sessions.
Thus, in 2023, a new law on co-operatives can be issued as a substitute for Law No. 25 of 1992 concerning Co-operatives that was re-enacted after a similar law in 2012 was overturned and declared unconstitutional by the Constitutional Court (MK) through judicial review.
"Law 25 of 1992 is considered to no longer follow the current challenges and the needs of co-operatives in the digital era," Hakim remarked.
Hence, the ministry initiated the making of the Co-operative Bill that involves the active role of co-operative movements and other related stakeholders.
According to Hakim, in the 2014-2019 period, the government along with the House had discussed the draft law to follow up on the Constitutional Court's ruling, but the bill failed to enter the plenary session, so it is currently listed in the Open Cumulative List category.
"With an open cumulative status, the discussion (on the bill) in the House can be carried out outside the national legislation program," he explained.
Meanwhile, Deputy for Co-operative Affairs at the Ministry Ahmad Zabadi remarked that various strategic issues had been mapped that encompassed capital provisions, co-operative governance, business expansion, insolvency of co-operatives, and criminal sanctions.
"The most crucial thing is strengthening the co-operative ecosystem through the Deposit Insurance Corporation establishment, the co-operative savings and loans supervisory authority, and the co-operative restructuring committee," he stated.
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Translator: Kuntum R, Kenzu
Editor: Sri Haryati
Copyright © ANTARA 2023
