Cooperative Minister Ensures National Cooperative System Law Will Be Completed This Year

Jakarta (ANTARA) - Minister of Cooperatives Ferry Juliantono has assured that the National Cooperative System Law will be completed this year in line with the target. “Insha’Allah, in the near future, this year, the National Cooperative System Law will be issued,” said Minister Ferry when met in Jakarta on Tuesday. He further explained that the revision of Law Number 25 of 1992 on Cooperatives is being expedited to be promptly enacted as a more relevant and modern legal foundation that strengthens the role of cooperatives in developing Indonesia’s people’s economy. “We are now accelerating the process of creating the latest Cooperatives Law because the law we are currently using is the 1992 law, which we consider no longer relevant and too outdated,” stated Minister Ferry. He revealed that the preparation of this regulation is currently in the perfection stage together with the House of Representatives (DPR) of the Republic of Indonesia. “It is already in Commission VI, after coming from the Legislation Body (DPR), so it will be discussed in the next session. After the revitalisation issues are perfected, the draft law can be directly discussed,” said Ferry. Previously, the DPR’s Legislation Body in November 2023 stated that three draft laws were being finalised, namely the Draft Law on the Protection of Indonesian Migrant Workers, the Draft Law on Statistics, and the Draft Law on Cooperatives. The Ministry of Cooperatives has also pushed for the acceleration of the approval of the new Cooperatives Draft Law because it is very important to restore the position of cooperatives as the main pillar of the national economy. One of the main proposals from the Ministry of Cooperatives is the establishment of a special Deposit Insurance Corporation (LPS) for cooperatives. The existence of this LPS is expected to increase the security of customer funds deposited in cooperatives, similar to the guarantee system applied in banks. In addition, digitalisation is also a key point that will be accommodated in the draft law. Cooperatives are encouraged to continue enhancing the utilisation of digital technology to accelerate their businesses, but they are still advised to engage in real business practices.