Obsolete Law on Cooperative Replaced by the House

Davidson Samosir

On 18 October 2012, the House of Representatives passed the Bill on Cooperative (“Bill”), which serves to replace its obsolete predecessor, namely the Law No. 15 of 1992 on Cooperatives (“1992 Law”).

Since the issuance of the Law No. 12 of 1967 on Cooperatives to present day, the government has been aiming to establish cooperatives as part of the people’s grassroot economy. As a result, the ultimate goal of the Bill is to strengthen the role of the cooperative in the economy. This is evident to where many of the micro, small, and medium enterprises legal form is a cooperative.