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ROLE OF COOP (JOINT VENTURE) IN INDONESIAN ECONOMIC DEVELOPMENT: A LEGAL REVIEW

Romli Arsad

Time faculty member of Sekolah Tinggi Ilmu Administrasi (STIA) Bandung.,

Time faculty member of Universitas Balai Bandung

ABSTRACT

The failure of coop in giving a contribution to the national economic development is allegedly because there has not been consistency, harmonization, systematization, and synchronization of legislation, either vertically or horizontally. The study results include knotted: (1) the role of coop by law or regulations requires the accommodation of the characteristics of coop, (2) Economic development is always closely related to the elements of growth, income, equity, acceleration, and justice, (3) That the role of coop based on statutory footing of coop to the development of the Indonesian economy, not have been possible to realize if the national economic development policy strategy and regulation is not integrally include coop in it. Therefore, it is needed (1) Coop Legislation in Indonesia, both at the level of law and policy must actually adopt the coop characteristics which is developed in economic theory and the coop movement. (2) Establishment of legislation relating to the macroeconomic development strategy should be made in a consistent, harmonious, systematic, and in sync with the interests and existence of coop as a vehicle for social economy. (3) The government gave a role to the coop as an entity that aspires to contribute to the economic development of Indonesia. It really should be the awareness and concern of all stakeholders consisting of legislative, the executive, the coop movement, and coop practitioners in Indonesia. Keyword: Coops, Populist Economy, Development Economy.

I. PRELIMINARY

Birth of coops in Europe is not separated from the dissagreement about economic ideology, namely the conflict between adherents of capital liberal economic ideology and the adherents of the socialist economic ideology. Apart from the question of where the tendency of Indonesia lies in the context of choice over the said economic ideology, but in fact in the explanation of the Indonesian Constitution of 1945 (UUD 1945) before the amendment, coop is explicitly stated and

understood as one economic entity that is most appropriate for Indonesia.

Grounded in reality coop inclusion in a

constitution of Indonesia, the consequences coop has a very strong legitimacy, both in terms of legal, political, or ideological. Therefore, it is not surprising that coop in Indonesia simultaniously, both in the context of the ideological, political, and juridical is always encouraged to be a pillar of the national economy by any ruling government and society. But in fact, the complexity of the problems

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faced by the coop, either internally or externally, until now it can be said have not finished or have not been able to meet the expectations as the pillar of the national economy. The rhetoric of some people who claim that coop proved to play a major role in times of economic crisis has not been able to make the coop as the economic development entity that can be proud of. Contribution of coop as means of the economic policies to realize the welfare state and welfare society, it seems that until now it is still a dream and is not easily to be realized. Based on indicators of Gross Domestic Product (GDP), real contribution of coops has never moved more than 1% (one percent). Ministry of Coops of the Republic of Indonesia openly presents data to be used as shared reflection. In 2007, it is recorded 49,840,469 companies with category of Small and Medium Enterprises (SMEs) including coops. Meanwhile, in the same year it is recorded 4,527 companies with category of Limited Liability Company (LLC). Thus, the number of SMEs reached 99.99% and the number of large companies only 0.01%. But if it is viewed from its contribution to GDP, large companies can contribute 46% and only 54% of SMEs. When averaged, every large company accounted GDP of 406 billion Rupiah per year, while each SMEs company accounted for only 43 million Rupiah per year. This fact implies that the amount donations of large company to the GDP are 9400 times higher than SMEs. It is recorded also from the overall of SME, the number of active coops are 108,966 and the inactive coops are 46,355. Thus, the inactive coops are only about 0.31% of the total numbers of SMEs, so that it can actually be said that the majority of coops are active.

Associated with poor coop role, one of them is identified as vulnerable as coops of various political interests. There is indication that the coop is only used as a venue to find bargaining position among the political forces. Based on experience of the New Order

government, it shows phenomenon, whereby the Village Coops Unit (KUD) through specific policies alleged to have emerged as one of the elements taken into account in the mechanism of sound achievement in the general election. It is also alleged that there is jelousy of other economic actors outside the coop. In this context, the question that often arises is why only coop which gets preferential treatment, as indicated by the inclusion of only the name of the coop in the company prior to the 1945 amendment, has its own ministry, separate loan schemes, and certain subsidies in particular. Although in the end through a constitutional amendment in the era of reform after the collapse of President Soeharto, the inclusion of "the coop" as one economic entity in the UUD 1945 been removed, in fact did not dampen the preferential treatment of the coop as an economic entity. Until now though Indonesia had successive governments, but the presence of a coop ministry and followed with special loans scheme coops are still maintained.

Based on this reality, it can be reinforced

that indications that Indonesia's economic policies of the past until now, still requires the participation of coops as an integral part for the success of economic development. Despite the existence of coop currently only regulated at the level of the Act as other economic entities, but the role of coops as one of economic policy remains a vital and has strategic position. Raising coop as an important entity in Indonesia's economic policies, on the other hand also raises expectations that the coop is an economic entity of the most understandable, familiar and acceptable to the general public. This estimate is certainly questionable, because the real understanding of society about the coop cannot be said to be evenly and completely right. In a society, such confusion still appears between understanding of coops as the economic system and the understanding of coops as an economic entity. If the coop is only

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meant as an economic system, then the coop will be paired with a liberal economic system or a socialist economic system, for example. Meanwhile, if the coop is only meant as a business entity, it has made coop paired with regulatory agencies such as the Limited company (Ltd) or Foundation. Thus it must be admitted that until now it is needed a comprehensive effort to promote coops as a whole meaning to the community. Full understanding of the coop as one economic entity, in turn, will further facilitate the appearance of rules, norms, or coop parameters in order discovery coop legislation as needed. Substance of coops as economic institutions or businesses with certain characteristics, then in the context of the law will get a firmness that compliance with the rules and at the same time forcing sanctions for non-compliance. An element of rules or norms that require, prohibit, or allow, in essence, was about to set up ways to defend the rights and obligations in proportion to the parties involved.

Given the history of coops is always

understood very closely with economic issues, and the economy is always associated with the law, it can be said between the economy and the law is always in a state of dynamic linkages and may not know the final word. This condition is actually appropriate postulation that both the economy and the law equally part of the social phenomenon whose existence is not eliminated in the community. The existence of economic and law with all the problems in it is always inherent in the presence of its supporters’ community. Economics and law are born, developed, and interpreted as the result of human interaction as long as mankind exists. Therefore, in reality the process tend to attract, and ultimately will bring antithesis or 'synthesis between economics and law. Based on such understanding, the meaning of the relationship between the economy and the coop is also applied on the relationship between coops

economy and coop law. Coop law is realized in the form of coop legislation, dynamically always in the process of attraction among various interests, especially between the interests of law and economic interests. Meaning of coops economy and coop law is in the dynamic that may not know the final word. Coops legislation is initiated to always be able to respond a development in coop economy, and on the other hand the coop economic practices will always follow the rules of the coop law. Thus the understanding of the coop economic substance becomes very important in the discovery or creation of coops law. The coop law material embodied in the coop legislation will always be closely linked to the dynamics of coops economy, and therefore it is very probably to held changes of coop law in accordance with the dynamics of the community itself.

The existence of the coop economy which at the beginning has always been associated with the dynamic of liberal economy and socialist economy can be said that until now still shows the same trend. Until now the existence of any coop economics degree and intensity, has always been linked to the existence of a liberal economy and a socialist economy. Any talking or understanding of coop economic efforts, always bring up comparisons and juxtaposing to the liberal economy and socialist economy. Even some circles found that in the coop economy, there is always the element of liberal economy and a socialist economy with many variants. This debate is likely to continue both in concept and practical level. Meanwhile, another fact that should also be understood is that the birth of coops has always been linked with the industrial revolution in Europe. Deterioration of labor groups in the context of the industrial revolution is suspected because of the disagreement that does not go over the liberal economic and socialist economic supporters, particularly in relation to the control of production means. Therefore it is not

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surprising that the coop economy is often connoted as one of struggling means of oppressed groups seeking justice. Liberal economy introduced over the interests of the individual, and the socialist economy that is more about common interests, in practice equally considered not able to provide significant solutions to improve the low economic group. Labor groups remain marginalized as a group of the weak and had difficulty getting access to get out of the slump. Therefore, the jargon of cooperation based on the principles of independence, democracy, and self-help, become extremely dominant in the labor struggle’s euphoria and the birth of coop.

Cooperation economy as a response to

conditions faced by vulnerable groups in the past certainly had many progress when it is reviewed in the present moment. The face of the coop at the time when it was established is different from the face of the present coop. International environment which continues to move rapidly has raised questions around the existence of coop economy itself. Coops conceptual base that is supported by the development concept of coop economy, has made coop remains a site of conflicting opinions from various viewpoints. The question arises about where is the actual location of coop economy as a scientific concept in sustaining the existence of coop as economic organization? Coops and coop economy as if demanded to provide a clear basis of concept for the formation of coop law. It can be said that the publishing coop legislation requires substantially contribution, mainly based on the development of economic concept and the concept of coop.

Because the policy issues of the world

economy today is in fact still create asymmetric patterns among countries, then in the end led to a variety of ideas as an option to address the injustice in the economy. Among them is a push to actualize the coop concept more fully and

striking, although it was realized that the idea of expanding the role of coops is not a simple matter and popular. Some countries have attempted to formulate the meaning of the coop and expressed it into national legislation. Similarly, in the macro-economic policy of a country, coop policy is often placed as an integral part of the economic policy of the country. Therefore, from the aspects of legislation in many countries, variants coop meaning appear which are expressed in the laws and policies of a country's economy. There are so many concept appear of coop economy and essentially seeks to provide a scientific basis for the coop, which in turn could be the foundation for the creation of coop law.

Various elements of coop substance on

which to base the issuance of coop legislation should have been a concept of economic organization which are very useful and needed by the community. Then, in the context of science, the concept of coop should be able to be accounted ontologically, epistemologically, and axiological. In the ontological sense implies that the coop does indeed exist. Coops in epistemological terms imply an open meaning and scientifically debatable. Coops in the epistemological sense imply that the existence of such coops can bring benefits to the community.

II. CONCEPT THEORY

Preview the existence of coop law, which implies the creation of a balance between the demands of fairness, certainty, usefulness, and order as set out in the statutory norms. Thus the emergence of norms of legislation must also have an adequate conceptual foundation. Therefore, in evaluating the existence of the coop in legal aspect, we can use particular theoretical models. On this occasion, there will be an examination using theoretical option which includes three main theories,

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namely: legal expediency concept as grand theory; concept of law as a means of development as a middle-range theory, and populist economic concept as applied theory.

1. Benefits Law Theory

Usefulness of the concept of theory

bases itself on the theory of utilities, emphasizing an understanding of the establishment of the optimal welfare for the majority of the people. Referring to the description of Jeremy Bentham between the years 1748 - 1832, the utilities theory has a motto "the greatest happiness for the greatest number or the greatest happiness for the greatest number of people". Utilitarian groups develop ideas related to the purpose of the law, which seeks a balance between fairness and certainty. The goal of law should be more emphasis on efforts to advance the interests of citizens and not protect natural rights. Because, by nature every human being is never free from the dynamics between distress and happiness. Happiness will only be obtained if there is a human's attempt to break free from distress. Happiness as a basis morality for human had made man to find goodness and prevent crime. Goodness expressed as happiness and distress is expressed as evil, so in general goodness is useful for the good of the community.

Application of the benefits for the

society is realized by developing the criteria of the hedonistic calculus, taking into account the intensity and duration of feelings. Based on these criteria, the calculation results have led to a negative number for the drunks as one example. Conclusions negative number on drunken activity must be judged bad according to moral. Utilities theory based on the criteria of the hedonistic calculus gets the development and refinement of John Stuart Mill, in Utilitarianism in 1864. Some critics expressed as follows: (1) Size of happiness should not only be

based on quantitative calculations, but also pay attention to qualitative calculations. For instance: the pleasure of an individual of Socrates considered more qualified than the pleasure of a few fools. To get more satisfying results, such a pleasure qualitative criteria should be done empirically, based on the opinions of the wise and experienced. That way there will be a certainty in quality, (2) Size of happiness based on moral norms referring to the happiness of all people, should be associated with involvement in an incident. A happiness of certain people should not be considered more important than the happiness of others. For example: evaluation methods do not discriminate between the president and his subordinates. 2. Law Theory As a Means of Development

Choices based on the assumption that

although the meaning of justice manifold due to the different value systems, but the application of positive law should still be based on justice. The collapse of the law will occur when the supporters feel the injustice on the legal setting. The Construction logically spawns conclusion that injustice would disturb public order, and with the disturbance of public order, it would certainly disturb the legal certainty as part of the law purpose. Logical view of justice, order and certainty as noted above, will sometimes encounter difficulties in reality. Therefore, there is a tendency to distinguish between the function and purpose of the law. Law in order to ensure regularity, predictability, and order, should be viewed not as an ending goal but only a function. While the purpose of the law is always associated with the end goal in public life and in the end comes down to fairness.

Specifically related to the legal

functions, Mochtar Kusumaatmadja creatively develops ideas Roscoe Pound, known for his concept of law as a tool of social engineering

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with the conditions and challenges faced by Indonesia. The Mochtar Kusumaatmadja’s idea is known as the law as a means to reform society or as a means of development, by linking the law and society. Some of the reasons put forward as a legitimate application of this concept, which include: (1) The process of legal reform in Indonesia further highlight legislation, (2) The emergence of sensitivity of the public to reject the application of law mechanism as a tool of social engineering. Thus the development of legal reform in Indonesia will rely more on cultural and policy approaches.

While the stated assumptions that the

law can serve as a means of reform in Indonesia are: (1) There is an order in making a development or renewal which is considered as something that is desired or deemed necessary, (2) Law in the sense of rules or regulation can serve as a tool (regulator) or the means of development in sense of channeling the human activities to the desired direction. The fact that the changes and order are the twin goals of developing society, then the law as an instrument or means cannot be ignored in the development process. The desired changes regularly and orderly through the procedure can take place through legislation or judicial decisions. To achieve these objectives Mochtar Kusumaatmadja provides guidance that an adequate understanding of the law should not only look at the law as a set of rules or principles that govern human life in society, but should also include institutions and processes required to make the law embodies the life. With regard to the empowerment of coops as a legal entity, the substance and enforcement posed leads to coop as a development component that should be fostered in order to synergize and contributive. These things can be done by eliminating the legislation clauses that were controversial and non-applicable. Conversely wise direction is the law which persuasively moves all the potential of national development

to role optimal in accordance with its existence and function.

3. Populist Economy Theory

First of all you need to know to

understand the populist economy is the understanding of the linkage between economic systems and social justice. Economic system is the overall economic institutions which live in a society and becomes a reference by the community in achieving the economic goals that have been set. While the definition of the institution is an organization or economic rules, both formal and informal that govern the behavior and actions of certain members of the community both in performing routine daily activities as well as in achieving a certain economic goals. Every society and at the level of the more complex forms of nation must have an economic system, namely the economic conception of a nation to address some issues, such as: (1) what goods should be produced, (2) how to produce the goods, and (3) to whom the goods are produced or how the goods distributed to the public. The answers to these questions will determine the economic system of a country.

The determination of the economic

system cannot be separated from ideology shared by the state. Particular ideology will bear a particular economic system anyway because basically, the state through its ideology has had a certain perspective to look at and solve the problems they face. Every economic system requires a set of rules, the underlying ideology, explaining the rules and individual belief that will make it to continue to run. Based on a populist economy understanding of the national economic system that organized as a joint venture based on the principle of the family,

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where the production is carried out by all, for all, under the leadership or viewing the community members that aims to enhance the ability of communities to control the course of economy. Populist economy is the economy management that is populist which is in organizing economic activity will give an impact on the poor people's welfare and economic advancement of the people that is the overall economic activity carried out by small people. Based on these understandings as described, it may be noted several characteristics of the populist economy as follows: a. Important Role of the State: State plays a

very important role in the system of populist economy. The role of the state is not just limited as a regulator to the economic cycle. Through the establishment of State-Owned Enterprises (SOEs), which is to organize branches of production which are important for the country and dominate the life of the people, the state can be directly involved in the implementation of various economic activities. The aim is to ensure that the prosperity of the people always takes precedence over the welfare of a person, and that the production reins from falling into the hands of individuals, which allows a lot of people are oppressed by a handful of people in power.

b. Economic Efficiency Based on the Justice, Participation, and Sustainability: It is not true that the populist economic system tends to ignore efficiency and anti-market. Efficiency in the system of populist economy is not only understood in the short-term perspective and a financial dimension, but comprehensively understood in terms of attention to both qualitative and quantitative aspects, financial and non-financial, and environmental aspects of sustainability. Populist economy politics is not based on equity, growth and stability, but on justice, participation, and sustainability.

c. Allocation Mechanism through Government Planning, Market Mechanisms, and Cooperation: the allocation mechanism in populist economic system, except for the branches of production which are important for the country and serving the people, remain based on market mechanisms. But the market mechanism is not the only one. Besides through the market mechanism, the allocation is also encouraged to runs through the mechanism of joint venture (coop). Market mechanisms and coops can be likened to two sides of the same coin in the allocation mechanism of populist economic system.

d. Equitable in Controlling Production Factor: In order that, in line with the mandate of the explanation of Article 33 of constitution (UUD 1945), organizing markets and coops in populist economic system should be done continually by doing institutional arrangement, that is by equalizing capital control or production factors to all levels of society members. Systematic process to democratize control of the production factors or increased the economic sovereignty of the people which is the substance of populist economic system.

e. Coop as a Cornerstone of Economy: From the point of Article 33 of Indonesian legislation (UUD 1945), the participation of community members in having production factors led coops to be expressed as a match-up company that appropriate with the populist economic system. As is known, the difference between coops with Liability Company lies in the application of the principles of openness to all parties who have an interest in the field of business that runs by coops to contribute to coop members.

f. Partnership Pattern in Production Relationship: There is a fundamental difference in coops that distinguishes it

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diametrically from other forms of another company. Among these is the removal of worker-employer sorting, namely the inclusion of the union as owner of a company or members of the coop. As confirmed by the Hatta, "There is no employer and no worker in coops, all of them are workers who work together to organize joint purposes". The main character of the populist economy or democracy economy essentially lies in the removal of individualistic and capitalistic character from the face of the Indonesian economy. On the micro level, among other things means that the inclusion of customers and employees as members of a coop or a company owner. While on the macro level, it means upholding the people’s sovereignty and placed the social economic prosperity over the individual prosperity.

g. Stock ownership By Workers: By appointing populist or democratic as the basic principles of the Indonesian economic system, the principle is by itself not only has an important position in determining the economic patterns that must be held by the state at the macro level. It also has a very important position in determining the company pattern that should be developed on a micro level. Companies should be developed as businesses entities that are owned and managed collectively (co-operative) through the application of Share Ownership by Workers. Enforcement of the populist economic sovereignty and make a prioritization of people prosperity over the individual prosperity can only be done by applying these principles.

III. DISCUSSION

(1) An understanding of the

coops’ role is based on the concept of coops economy as the basis of the formation of coop

legislation. The emphasis of the conceptual understanding is on the problem accumulation of the aspects of user, owner, and populist economy in a rule of law, (2) an understanding of the economic development in Indonesia is mainly based on the parameters of GNP. The emphasis of conceptual understanding is accumulated around each issue of development, growth, acceleration, and equity in the Indonesian economy, and (3) an understanding of the coop legislation in order to contribute to the economic development of Indonesia. The emphasis of conceptual understanding is a matter tract of accumulated manufacturing validity of norms, rules, criteria, or the size of the coop, which is expected to be able to accommodate economic development. Those three understandings of the concept will be further described as follows: 1. An understanding of the role of coops

based on the concept of coop economy as the basis of the formation of coop law

Economic ideology at least has 2 (two) main characteristics in conceptual that distinguish it with other ideology, especially liberal economic ideology and socialist economic ideology. The two main characteristics of coops economy are: (1) There is a unity between the owners and users in a coop, and (2) It is related to a network of coop economy entities. Based on the construction of the merging of the owners and users has made the coops not only have a function as a profit seeker institution but also as an institution that gives services to its member. Meanwhile, what is meant as populist economic enterprise is that the coops are always concerned with the interests and in favor of the economically weaker segments of society. Based on this understanding, the first characteristic of coop economy contains the values of independence and democracy. These characteristics in the application are realized in the form of policy formation, implementation,

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and monitoring which are carried out by the members themselves in a transparent, accountable, and equitable. Meanwhile, the second characteristic of coop economy contains human values and protection. These characteristics in the application are realized in the form of appreciation for human dignity and the common good.

Based on the characteristics of the

coop economy, it is implied a respect for individual interests, as highlighted by the liberal economy. However, the coops economic characteristics are also implying an appreciation of shared interests, as highlighted by socialist economics. The protection of the values of independence, democracy, and human virtue in the context of small-scale business network, could substantially be constructed as an effort to build and develop the paradigm of interdependency and settlement solutions that benefit all (win-win solution). Thus, efforts to establish coop law which is based on the understanding of coop economy, will produce the law product that has certain characteristics but still in accordance with the purposes of the law, namely to create a balance between fairness, certainty and expediency.

The role of coops in the law or

legislation is meant to be in accordance with the aspirations and the real needs of the community. Law by das sollen will keep the implementation of rights and obligations for certain, fair, and benefits for each coops’ stakeholder. That in fact the law will always lag behind the dynamics of the community, it can be considered as fairness because the law is a phenomenon of society, where law exists because of the existence of human society. Thus the emergence of coop legislation is the desire and interest of the community itself. The construction of coop is alleged precise based on community dynamics, essentially requires the provision of opportunities for coop stakeholders

to be included or be heard. The role of coops should always reflect the accumulation of the role of owner, roles of user, and the atmosphere of populist economy.

Relevance understanding of the coops

role based on the concept of coops economy as the basis of the formation of coop law, was associated with the focus of the study of a normative juridical approach Regarding to the Role of Coops in Indonesia Economic Development: A Study of Law Against Law No. 25 of 1992 on Coops are: (1) will provide more understanding on the linkages between coops with other sectors in society. That the coop is an entity that has a multidimensional and is particularly closely related to the economic dimensions, (2) will further provide an understanding that the product of positive law and also have dimensions to accommodate of legal awareness, and as a vehicle for change and community development.

2. Understanding of the equitable economic development of Indonesia

Economic development is an increasing

process of total income and per capita income by taking into account the population growth accompanied by fundamental changes in the economic structure of a country. Economic development cannot be separated from economic growth; economic development drives economic growth, and vice versa, economic growth facilitates the economic development process. The definition of economic growth is the increase in the production capacity of an economy that is realized in the form of an increase in national income. A country is said to have an economic growth if there is an increase in real GNP in the country. The existence of economic growth is an indication of the success of economic development. The difference between the two is the successful of economic growth is more

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quantitative, that is by the increase in the income standard and the level of output produced, while economic development is more qualitative, not only increase production, but there are also changes in the structure of production and allocation of inputs on various sectors of the economy such as in institutions, knowledge, and techniques.

According to Article 4 of Law No. 25 of

2004 on National Development Planning system, the economic development is directed to strengthening the national economic sytem to promote the progress of the nation with the following characteristics: (1) The economy is structured as a joint venture based on the principle of the family, (2 ) branches of production which are important for the state and serving the people should be controlled by the state, (3) Earth, water and the natural riches contained therein shall be controlled by the state and used for the benefit of the people, (4) the national economy is held based on the principle of economic democracy with the principles of solidarity, equitable efficiency, sustainability, environment, self-reliance, and to maintain a balance between progress and unity of the national economy, (5) the state budget as a form of financial management shall be conducted in an open and responsible for the prosperity of the people.

There are several factors that affect the

growth and economic development, but in fact these factors can be distinguished into two groups, namely economic and noneconomic factors. Economic factors affecting economic growth and development such as natural resources, human resources, capital resources, and skills or entrepreneurial. Natural resources include land and natural resources such as soil fertility, climatic conditions, forest products, mining, and marine products, greatly affect the growth industry of a country, especially in the production of raw material supply. Meanwhile,

expertise and entrepreneurship are needed to process raw materials from nature, into something that has a higher value. Human resources also determine the success of national development through the number and quality of the population. Large population is a potential market to market production results, while the quality of the population determines how much of the existing productivity. Meanwhile, human capital resources are needed to process raw materials. Capital formation and investment is aimed to explore and cultivate wealth. Capital resources which are capital goods are essential for the development and continuity of economic development for capital goods can also increase productivity. Meanwhile, noneconomic factors consist of the social conditions that exist in the culture, political situation, and develop and applied systems.

Construction of economic development

based on the elements of growth, acceleration, equity, and justice in the context of the implementation that will be faced with a number of options or alternative strategies. Each State has a calculation based on certain assumptions with respect to the resources they have. These conditions have made economic development priorities along with a strategy that is used, that becomes an event of argumentative debate among stakeholders. Thus the option to raise the coops economy role in economic development, at least has to prepare with the option that the liberal and socialist economy as mainstream of many countries in the world.

The relevance of understanding for the

equitable economic development of Indonesia is associated with a study focus of normative juridical approach regarding the Role of Coops in Indonesia Economic Development: A legal study against Law. 25 of 1992 on Coops, which are: (1) It provides an insight into the complexity of the economic development of a country, among

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other factors closely related to the interdependence factors between countries due to the limitations of production factors that are owned by each country, (2) will provide more understanding that the construction of economic development, which is based on the elements of growth, acceleration, equity, and justice, can be synthesized with the formulation of coops as a vehicle of economy. 3. Understanding of the coop legislation in

order to contribute to the economic development of Indonesia

The findings coops law which is appropriate with the coops economy, especially relating to the character of partiality towards small-scale economies, is certainly a hope and a challenge that must be faced. The complexity of the problem will be even greater, when the foreign trade dependence rate so high, which foreign partner countries require certain norms requirements outside of the coop economic system. In the context of expectations that there will be coop law that can contribute to the economic development of Indonesia, it should be guided by the concept of law as a means of development. Law as a means of development has always endeavored to link the law and society itself in harmony. Considering that development is not value-free concept, the linkage between law and society is always in the cultural and policies corridor dynamically. Thus, an adequate understanding of the law should not only regard the law as a principle that governs human life in society, but also should include institutions and processes needed to realize the law in reality. The coop law which is created in accordance with the coop economics concept and the legal concept as a means of development, in turn, is believed to be able to contribute to the development of Indonesia's economy significantly.

The willing to create law of coop

significantly will be able to give a contribution to

economic development, nor does it mean that coop organizations need to be an ideology and directed by the state thus it potentially creates a dichotomy to the forms of other economic enterprises. The construction of coop based on norms of coop characteristic must still be treated as a free choice in the community. Law as a means of development to stimulate coops to have more contribution to national economic development should be placed in proportion as the repertoire of thoughts that allegedly brings great benefits to society. The Development and selection of the coop as one of contributors to the economic development should be directed in such a way as to make room for the attraction of economic activity which has coops characteristic.

The enhancing of the coops role in the

economic development in Indonesia in the framework of law or regulations implies the emergence of an appreciation to evaluate products of legislation which are in progress, as well as the prediction of legislation products which are needed in the future. The role of coops which were correlated with coop legislation as the basis for its operations, has made the creation of legal norms of coops must be aligned with the strategy of economic development of Indonesia. The increase of expectations to the coop as a contributor to the economic development of Indonesia is a challenge and an opportunity to bring the law of coop that truly in accordance with the needs of the community.

Relevance understanding of the coop

legislation in order to contribute to the economic development of Indonesia is associated with the focus of study of Normative Juridical Approach Regarding to the Role of Coops in Indonesia Economic Development: A Study of Law Against Law No. 25 of 1992 on Coops are: (1) It provides an understanding that the Law No. 25 of 1992 on Coops as positive law

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is assumed has not managed to provide stimulation to the role of coops in the national economy, (2) it will increasingly provide an understanding that the policy at the executive level which refers to the Law No. 25 of 1992 on Coops is assumed to be potentially gives a chance to the destruction of the making of legislation on the role of coops in the national economy.

IV. CONCLUSION The role of coops under the laws or

regulations requires any additional characteristics of coops as developed in national and international coop movement and discourse in economic theory. What is meant on the characteristics of the coop here is the fulfillment of the elements (a) the role of the owner, (b) the role of the user, and (c) related to the concept of populist economy. The role of owner implies that the coop members have rights to its policy and its accountability. The role of user implies that members of the coop will receive the economic benefits as members of the coop association. While any paced related to the concept of populist economy implies that the existence of coop has always had an element of partisanship recognition of (1) the role of the state to ensure the creation of economic democracy, (2) concern for small-scale economies, (3) there is a guarantee that there will be no mutual exploitation, (4) Make a priority to the interests of public rather than the interests of individuals, and (5) upholding the principles of justice and morality.

The role of coops under the laws in

Indonesia has not been able to walk up. Consistency, harmonization, systematization, and horizontal synchronization with other legislation as a condition to the role of coop has not manifested in Indonesia. That economic development is always closely related to the elements of growth, income, equity,

acceleration, and justice. Indonesia's economic development strategy in order to realize these four elements into a harmonious and efficient can be said to be facing formidable hurdle. Indonesia's resource structure which is dominant to the aspect of the power of natural resources is not compatible with the capacity of human resources, capital resources, and technology resources. The result is that Indonesia's economic development policies tends to be bound to the structure of foreign dependence that have strong human resources, capital resources, and technology resources. Indonesia's inability to devise economic development independently and do not get too attached to the foreign element, essentially is not a simple issue because it is closely related to the national interests of each country that wants to prosper its people. The solution to get out of the situation by giving a larger share of coop engagement, although it is very difficult to do but still possible if it is supported by the right coop legislation product.

Economic development that relies on

growth, income, equity, acceleration, and justice can be said remain unaddressed by the coop organization. The coop quality if it is observed whether from management aspect or organizational aspects still need to be improved in order to contribute to the economic development process significantly. The role of coops to the development of the Indonesian economy has not been possible if the regulatory strategy and national economic development policies are not integrally and explicitly incorporate coops in it. So, it requires comprehensive, explicit and integral regulations that really put coops as the pillar of the national economy. During this time the role of coops in the economic development of Indonesia can be said is limited to slogans and more nuanced political interests. The existence of coops legislation at the beginning of independence, at the era of new order, and even in the

17

reformation era substantially has not been able to change the role of coops as aspired.

The establishment of coop legislation in

Indonesia, both at the level of laws and policies truly adopt the coop characteristics that developed in economic theory and the coop movement. The Government should make consistent, harmonious, systematic, and in sync with the interests and existence of coops as a vehicle for social economy in forming legislation relating to the macroeconomic development strategy. The government should give the role to the coop as entities that aspired to contribute to the economic development of Indonesia. It really should be the awareness and concern of all stakeholders consisting of legislative, the executive, the coop movement, and practitioner of coops in Indonesia.

18

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C. REGULATION LEGISLATION Undang Undang Dasar 1945 Undang Undang No. 25 Tahun 1992 Tentang

Perkoperasian Undang Undang No. 25 Tahun 2004 Tentang

Sistem Perencanaan Pembangunan Nasional

Undang Undang No. 32 tahun 2004 Tentang Pemerintahan Daerah

Undang Undang No. 20 Tahun 2008 Tentang Usaha Mikro, Kecil dan Menengah

Undang Undang No. 17 Tahun 2012 Tentang Perkoperasian

Peraturan Pemerintah No. 4 Tahun 1994 Tentang Persyaratan dan Tata cara

Pengesahan Akta Pendirian dan Perubahan Anggaran dasar Koperasi

Peraturan Pemerintah No. 17 Tahun 1994 Tentang Pembubaran Koperasi oleh Pemerintah

Peraturan Pemerintah No. 9 tahun 1995 Tentang Pelaksanaan Kegiatan Usaha Simpan Pinjam oleh Koperasi

Peraturan Pemerintah No. 33 Tahun 1998 Tentang Modal Penyertaan Pada Koperasi

Instruksi Presiden No. 18 Tahun 1998 Tentang Peningkatan Pembinaan dan Pengembangan Perkoperasian