Agus Sahbani, Andin Aditya Rahman
The Constitutional Court is contining its judicial review of19 articles of Law No. 17 of 2012 on Cooperatives. The judicial review itself was filed by several local cooperatives from throughout Indonesia such as Gabungan Koperasi Pegawai Republik Indonesia, Pusat Koperasi Unit Desa East Java, Pusat Koperasi Wanita East Java, and Gabungan Koperasi Susu Indonesia, to name a few.
On Wednesday, the Court heard expert opinion from Ahmad Erani Yustika, an economics professor at Universitas Brawijaya. Erani said that the development of cooperatives in Indonesia is in accordance with the essence and values of the 1945 Constitution.
“Cooperatives are, of course, very different from other business entities, such as limited liability and limited partnership companies, as the later are individual-based and profit oriented,” Erani explained.
According to Erani, the core characteristics of a cooperative are the gathering of people rather than capital, equality, and common welfare. In other words, cooperatives prioritize people relationships, and not capital relationships.
The characteristics of cooperatives, Erani continued, are based on the spirit of Article 33 (1) of the 1945 Constitution that prohibits certain practices related to economic competition.
On the contrary, this article encourages economic activities that promote economic cooperation. Such economic cooperation at the smallest of units is, indeed, in the form of cooperatives.
“With such business practices, there can never be developments of relation dichotomies between employees and owners, which are usually involved in conflicts under current economic practices,” concluded the Professor.
As a background, the applicants have argued that the definition of “cooperative” under the Cooperative Law has changed the nature of cooperatives’ activities from joint businesses into individualistic businesses.
The applicants then filed a judicial review petition to the Constitutional Court on 19 articles, namely Articles 1 (1), 50 (1), 55 (1), 56 (1), 66-77, 80, 82, and 83.
The applicants are of the view that these articles are in conflict with the core essence of cooperatives and contradict Article 33 (1) of the 1945 Constitution.
(hot/kc)
Agus Sahbani, Andin Aditya Rahman
The Constitutional Court is contining its judicial review of19 articles of Law No. 17 of 2012 on Cooperatives. The judicial review itself was filed by several local cooperatives from throughout Indonesia such as Gabungan Koperasi Pegawai Republik Indonesia, Pusat Koperasi Unit Desa East Java, Pusat Koperasi Wanita East Java, and Gabungan Koperasi Susu Indonesia, to name a few.
On Wednesday, the Court heard expert opinion from Ahmad Erani Yustika, an economics professor at Universitas Brawijaya. Erani said that the development of cooperatives in Indonesia is in accordance with the essence and values of the 1945 Constitution.
“Cooperatives are, of course, very different from other business entities, such as limited liability and limited partnership companies, as the later are individual-based and profit oriented,” Erani explained.
According to Erani, the core characteristics of a cooperative are the gathering of people rather than capital, equality, and common welfare. In other words, cooperatives prioritize people relationships, and not capital relationships.
The characteristics of cooperatives, Erani continued, are based on the spirit of Article 33 (1) of the 1945 Constitution that prohibits certain practices related to economic competition.
On the contrary, this article encourages economic activities that promote economic cooperation. Such economic cooperation at the smallest of units is, indeed, in the form of cooperatives.
“With such business practices, there can never be developments of relation dichotomies between employees and owners, which are usually involved in conflicts under current economic practices,” concluded the Professor.
As a background, the applicants have argued that the definition of “cooperative” under the Cooperative Law has changed the nature of cooperatives’ activities from joint businesses into individualistic businesses.
The applicants then filed a judicial review petition to the Constitutional Court on 19 articles, namely Articles 1 (1), 50 (1), 55 (1), 56 (1), 66-77, 80, 82, and 83.
The applicants are of the view that these articles are in conflict with the core essence of cooperatives and contradict Article 33 (1) of the 1945 Constitution.
(hot/kc)