Improvement of Public Services

Oct 13, 2025 by vinooalluri.com 38 views

Procedure for Establishing and Licensing Cooperatives Based on Cooperative Law No.17 of 2012 in Terms of State Administrative Law (Case Study of Cooperatives Savings and Loans of Love Krakatau Bilal Medan)

Introduction

Establishing and licensing cooperatives is a crucial first step for every cooperative founder before they can carry out activities in the community. Cooperative Law Number 17 of 2012 regulates in detail this matter, providing a framework for the establishment and licensing of cooperatives in Indonesia. This research focuses on the Krakatau Love Savings and Loan Cooperative, with the aim of identifying and analyzing the process of establishing and licensing that must be passed, including the constraints that arise in the issuance of the Deed of Establishment and Licensing in Medan City.

Background of Cooperative Law No.17 of 2012

Cooperative Law Number 17 of 2012 is a significant legislation that regulates the establishment and licensing of cooperatives in Indonesia. The law provides a framework for the establishment of cooperatives, including the requirements for registration, licensing, and operation. The law also provides for the rights and obligations of cooperative members, as well as the powers and responsibilities of the cooperative management.

The Process of Establishing a Cooperative

The process of establishing a cooperative begins with the procurement of preparation meetings involving at least 20 founders, notaries, and authorized officials, in accordance with the provisions listed in the Minister of Cooperative and UKM Regulation Number 1 of 2006, especially in Article 4 and Article 5 paragraph (1). The preparation meeting is a crucial step in the establishment of a cooperative, as it provides an opportunity for the founders to discuss and agree on the objectives, structure, and operations of the cooperative.

Constraints of Public Services

Constraints of public services are often caused by lack of human resources and infrastructure in authorized government agencies. This situation can slow down the administrative process and cause the founder of the cooperative to wait longer to get the necessary permits. In addition, many cooperative founders do not have enough understanding of the procedures that must be passed, which can add to the complexity of licensing.

The Role of Notaries in Cooperative Establishment

The relatively high notary cost is also one of the obstacles for the founder of the cooperative, especially for those who come from the lower middle class. Notaries play a crucial role in the establishment of cooperatives, as they are responsible for drafting and registering the Deed of Establishment and Licensing. However, the high cost of notary services can be a burden for cooperative founders, especially those who are from lower-income backgrounds.

Analysis of Cooperative Establishment Process Constraints

The establishment and licensing of cooperatives in Medan faces various challenges that require serious attention from all related parties. The lack of adequate public services, slow process of issuing deeds, and high cost of notary services are some of the obstacles that cooperative founders often face. These challenges can be addressed through policies and regulations that provide convenience and support for the establishment of cooperatives.

Conclusion

Overall, the establishment and licensing of cooperatives in Medan faces various challenges that require serious attention from all related parties. It is essential to optimize the public service process and reduce administrative costs to facilitate the founder of cooperatives. With the right improvement steps, it is expected that cooperatives can function optimally as one of the pillars of the community's economy. Through strengthening regulations and increasing understanding of the rights and obligations in the establishment of cooperatives, it is hoped that more cooperatives will emerge that are able to contribute positively to the local economy.

Recommendations

Based on the findings of this research, the following recommendations are made:

Improvement of Public Services: The government should improve public services by increasing the number of human resources and infrastructure in authorized government agencies.
Reduction of Administrative Costs: The government should reduce administrative costs by providing free notary services for newly established cooperatives.
Strengthening Regulations: The government should strengthen regulations to provide convenience and support for the establishment of cooperatives.
Increasing Understanding of Rights and Obligations: The government should increase understanding of the rights and obligations of cooperative members and management through education and training programs.

Limitations of the Study

This study has several limitations, including:

Case Study Approach: This study uses a case study approach, which may limit the generalizability of the findings.
Limited Data: The study relies on secondary data, which may be limited in scope and accuracy.
Subjective Interpretation: The study's findings may be subject to subjective interpretation, which may affect the validity of the results.

Future Research Directions

Future research should focus on the following areas:

Comparative Study: A comparative study of the establishment and licensing of cooperatives in different regions of Indonesia.
Qualitative Study: A qualitative study of the experiences of cooperative founders and members in the establishment and licensing process.
Quantitative Study: A quantitative study of the impact of cooperative establishment and licensing on the local economy.

Conclusion

In conclusion, the establishment and licensing of cooperatives in Medan faces various challenges that require serious attention from all related parties. This study highlights the importance of improving public services, reducing administrative costs, strengthening regulations, and increasing understanding of the rights and obligations of cooperative members and management. By addressing these challenges, it is expected that cooperatives can function optimally as one of the pillars of the community's economy.
Frequently Asked Questions (FAQs) about Cooperative Establishment and Licensing in Indonesia

Q: What is the Cooperative Law No.17 of 2012?

A: Cooperative Law No.17 of 2012 is a significant legislation that regulates the establishment and licensing of cooperatives in Indonesia. The law provides a framework for the establishment of cooperatives, including the requirements for registration, licensing, and operation.

Q: What are the requirements for establishing a cooperative in Indonesia?

A: The requirements for establishing a cooperative in Indonesia include:

Minimum of 20 founders: The cooperative must have at least 20 founders who are willing to establish the cooperative.
Notary services: The cooperative must engage the services of a notary to draft and register the Deed of Establishment and Licensing.
Authorized officials: The cooperative must have authorized officials who are responsible for managing the cooperative.
Registration with the Ministry of Cooperatives and UKM: The cooperative must register with the Ministry of Cooperatives and UKM to obtain a license to operate.

Q: What are the benefits of establishing a cooperative in Indonesia?

A: The benefits of establishing a cooperative in Indonesia include:

Access to funding: Cooperatives can access funding from government agencies, banks, and other financial institutions.
Tax benefits: Cooperatives are exempt from paying income tax on their profits.
Social benefits: Cooperatives can provide social benefits to their members, such as education and training programs.
Economic benefits: Cooperatives can contribute to the local economy by creating jobs and stimulating economic growth.

Q: What are the challenges of establishing a cooperative in Indonesia?

A: The challenges of establishing a cooperative in Indonesia include:

Complex regulatory framework: The regulatory framework for cooperatives in Indonesia is complex and can be difficult to navigate.
Limited access to funding: Cooperatives may have limited access to funding from government agencies, banks, and other financial institutions.
High costs: The costs of establishing a cooperative, including notary services and registration fees, can be high.
Limited understanding of cooperative principles: Many people in Indonesia may not understand the principles of cooperatives, which can make it difficult to establish a cooperative.

Q: How can I establish a cooperative in Indonesia?

A: To establish a cooperative in Indonesia, you will need to:

Conduct a feasibility study: Conduct a feasibility study to determine whether a cooperative is viable in your area.
Gather a group of founders: Gather a group of at least 20 founders who are willing to establish the cooperative.
Engage a notary: Engage a notary to draft and register the Deed of Establishment and Licensing.
Register with the Ministry of Cooperatives and UKM: Register with the Ministry of Cooperatives and UKM to obtain a license to operate.

Q: What are the types of cooperatives that can be established in Indonesia?

A: The types of cooperatives that can be established in Indonesia include:

Producer cooperatives: Producer cooperatives are cooperatives that are established by producers to market and sell their products.
Consumer cooperatives: Consumer cooperatives are cooperatives that are established by consumers to purchase goods and services.
Service cooperatives: Service cooperatives are cooperatives that provide services to their members, such as education and training programs.
Mixed cooperatives: Mixed cooperatives are cooperatives that provide a combination of goods and services to their members.

Q: How can I obtain a license to operate a cooperative in Indonesia?

A: To obtain a license to operate a cooperative in Indonesia, you will need to:

Register with the Ministry of Cooperatives and UKM: Register with the Ministry of Cooperatives and UKM to obtain a license to operate.
Submit required documents: Submit the required documents, including the Deed of Establishment and Licensing and proof of registration with the Ministry of Cooperatives and UKM.
Pay the required fees: Pay the required fees, including registration fees and licensing fees.
Meet the requirements: Meet the requirements for operating a cooperative in Indonesia, including maintaining a minimum level of capital and providing services to your members.