Legal Reformulation of Sharia… Surya, Ruben Sandi
Al-Ahkam 45
Legal Reformulation of Sharia Cooperation Strengthening in Indonesia
Surya Perdana
Universitas Muhammadiyah Sumatera Utara e-mail: [email protected]
Ruben Sandi Yoga Utama Panggabean
Universitas Muhammadiyah Sumatera Utara e-mail: [email protected]
Abstract
The absence of regulation implementations for Law No. 1 of 2013 about microfinance institutions can also be said to be a legal vacuum. As a result, violations of Law No. 1 of 2013 will be difficult to prosecute both administratively and criminally. Whereas, the administrative and criminal violation will clearly have direct consequences for the society both as depositors and Debtors. This research used normative juridical. The research method used in this research is normative juridical. In this research, an approach toward legislation was used, that is No. 1 of 2013 about Microfinance Institutions. Another consequence is an ineffective implementation of Law No. 1 of 2013 which has become legal basis for Microfinance Institutional operations legality and protection for the society as depositors and Debtors.
Legal reformulation of Sharia Cooperation Strengthening in Indonesia was carried by constructing the implementation Rules as mandated by Law No. 1 of 2013 about Microfinance Institutions. An important thing of legal reformulation made in the implementation rules of Law No. 1 of 2013 to strengthen sharia cooperation is giving an authority to the National Sharia Council, that is Indonesian Ulema Council for developing, regulating, and supervising sharia-based microfinance institutions in Indonesia.
Keywords: sharia cooperative, microfinance institution, protection, reformulation.
A. INTRODUCTION
Central Statistics Agency for March 2022 showed that the number of poor people is about 9.54 percent of total population or 11.82 million people. On average, poor households in Indonesia have 4.74 members. Thus, the average poverty line per poor household is IDR 2.3 million/poor household/month. Thus, the average poverty line for each poor household is about IDR 2.3 million/poor household/month1. Even though in terms of numbers it has been claimed that there has been a reduction in the poverty rate, but it has still been a problem for Indonesia since independence day in 1945 to present.
The goals of the Indonesia are clearly stated in the 1945 Constitution; it’s specifically written in paragraph 4 which reads:
“Subsequent thereto, to form a government of the state of Indonesia which shall protect all the people of Indonesia and their entire native land, and in order to improve the public welfare, to advance the intellectual life of the people and to contribute to the establishment of a world order based on freedom, abiding peace and social justice”.
Based on the statement above, it can be concluded that Indonesia has 4 goals, they are protection, welfare, intelligence and peace. Indonesia's first goal is protection. This goal means that all components in Indonesia should be protected. It’s started from its society, natural wealth, culture, and the values of the Indonesia. These things are included in Indonesia’s goals as a protection. The parameter of citizens as legal subject who have been protected is when their rights as citizens have been fulfilled. This fulfillment is carried out which is written in 1945 Constitution of Indonesia such as human rights, right for getting education and job, having something, etc.
1 https://www.bps.go.id/pressrelease/2022/07/15/1930/persentase-penduduk-miskin-maret-2022-turun-menjadi- 9-54-persen.html diakses Rabu 7 Desember 2022 pukul 08.30 WIB.
46 Vol. 18 No. 2 , December 2022 means that dealing with the problem of poverty is one of government’s obligation. Those responsibilities involve policy and regulation making, budgeting and program implementation. Poverty alleviation can be carried out by providing a training and giving access to capital. So, the society as target of policy can upgrade themselves from poor condition to be prosperous people.
The provision of skills and access to capital can be carried out by the government and its society in an integrated way through policy making, legal basis arrangement, and providing supporting infrastructure facilities which will be useful for improving the society’s prosperity2.
There are two forms of cooperation in Indonesia, the first is conventional which is regulated in Law 25 of 1992 about Cooperation, and the second is sharia or trust finance which is regulated in Law No. 1 of 2013 about microfinance institutions. This law has a role to create peacefulness, because it is a concept to ensure among external orders and inner peacefulness. It’s is not only seen as a power reflection, but also the protection for citizens’ rights3. After the promulgation of Law No. 1 of 2013 to present, the government has not legalized the implementation of that law. It has made ineffective of the implementation of Law 1 of 2013 as the legal basis of operational microfinance institutions in achieving their goals to improve Indonesia society’s income and welfare.
The absence of implementation rules for Law No. 1 of 2013 can be said as a legal vacuum with the result that violations of Law No. 1 of 2013 will be difficult to prosecute both administratively and criminally. Whereas, administrative and criminal violation will directly impact on the society, both as depositors and debtors. Thus, Law No. 1 of 2013 cannot effectively protect the interests of society.
This is where the role of legal reformulation, that is to formulate implementation rules for Law No. 1 of 2013 as a means of realizing legal certainty and protection for the society both as depositors and users in the microfinance institution sector.
There are seven comparative indicators between Law No. 25 of 1992 and Law No. 1 of 2013, they are; (1) license, (2) supervision, and (3) administrative and criminal prohibition rules; which are described in the following table:
Table 1
Comparative indicators between Law No. 25 of 1992 and Law No. 1 of 2013
2https://koperasi.bappenas.go.id/portal/portal/index7f12.html?page=koperasiindonesia#:~:text=Koperasi%20di%
20Indonesia%2C%20menurut%20UU,yang%20berdasar%20atas%20asas%20kekeluargaan. Diakses Rabu 7 Desember 2022 pukul 09.59 WIB.
3 https://rechtsvinding.bphn.go.id/ejournal/index.php/jrv/article/view/7/68 diakses Rabu 7 Desember 2022 pukul 10.32 WIB.
Indicators Law No 25 of 1992
about Cooperation Law No 1 of 2013 About Microfinance Institution
Establishment Goals Section 3 Section 3
Legal Entity Section 9 Section 5
operational licenses Section 10 Section 9
Supervision Section 38 and 39 Section 12 and 13
Development Section 60 Section 28, subsection 1-5
Administrative Violations Section 46, 47, 48 Section 33
Criminal Violations - (Section 34-38).
Legal Reformulation of Sharia… Surya, Ruben Sandi
Al-Ahkam 47
Actually, the movement of the Islamic economic has existed since 1905 with the establishment of Islamic Trade Union. Due to the influence of several factors, this movement could not be continued, with the result that there is a long Islamic economic vacuum in Indonesia. This movement then appeared in the 1980’s, it was marked by the establishment of Teknosa Trust Finance in Bandung, then Ridho Gusti Trust Finance in Jakarta. However, like its predecessors, this movement did not last long and faded away then4.
In 1992, with the emergence of Bina Insan Kamil's Trust Finance in Jakarta, sharia cooperation was started getting busy to be discussed. This is due to the success of Bina Insan Kamil Trust Finance in giving a new color to the economy sector, especially for micro entrepreneurs. Since then, the discourse on sharia cooperation has begun to receive considerable attention from society5. In its inception, Trust Finance was only a Sharia-Based Community Self-Help Group, but it well performed as well as a bank. It was classified as Sharia-Based Community Self-Help Group to avoid legal entanglement as an illegal bank. This is related to Bank Indonesia regulations which have cooperative relationship pattern among Bank and Bank Indonesia's Non-Governmental Organizations6.
Prior to the existence of Law No. 1 of 2013 concerning microfinance institutions, it can be said that sharia cooperation did not have any legal basis from operational sides. The difference among BMT (trust finance) as a sharia cooperation and other conventional cooperation are only on the operational side. BMT or trust finance as a sharia cooperation forbids interest and put forward moral ethics by looking at the rules of lawful and unlawful in the process of doing business. So, the strategic efforts are needed to be considered to strengthen Islamic Cooperation institutions through constructing regulations with the result that the interests of members and society can be protected and the purpose of cooperation establishment to generate profits and improve the members’ and piblic’s welfare can be achieved.
Government Regulation Number 7 of 2021 about Convenience, Protection and Empowerment for Cooperation and Micro Business, Small and Medium Enterprises as a derivative of Law 11 of 2020 about Job Creation is not an implementation rules as referred in Law No. 1 of 2013.
B. Research Method
This research used is normative juridical method. In normative legal research, several approaches are used, they are statute, conceptual, analytical, comparative, historical, philosophical and case approach7.
The nature of the research in writing this paper is descriptive. The descriptive research method primarily focuses on describing the nature of a demographic segment, and its aim is to obtain a complete description of the legal situation that applied in a certain place and time, or about the existence of juridical phenomena, or certain legal phenomena which is occurred in the society8. The data used are primary and secondary data sourced from laws and regulations about microfinance institutions, consumer protection, books and journals which discuss about Sharia Cooperation. In collecting the data, literature review was used by reading the provisions of existing laws and regulations, then they were associated with legal theory and expert opinion. Based on the review of primary data, an abstraction and reconstruction of the intellectual activities which have resulted in the various written works was carried out. Those abstraction and reconstruction were carried out by using the results of a
4 Lisnawati, Koperasi Dalam Sistem Perekonomian di Indonesia/ Prof. Carunia Mulia Firdausi,MADE,P.Hd,APU (ed).(Jakarta: Yayasan Obor Pustaka,2018) hlm.104.
5 Ibid.
6 Ibid.
7 Johny Ibrahim, Teori dan Metodologi Penelitian Hukum Normatif, Edisi revisi, Cetakan keempat (Malang: Bayumedia Publishing,2011), hlm.300.
8 Pedoman Penulisan Disertasi Program Studi Doktor Hukum, Pascasarjana Universitas Muhammadiyah Sumatera Utara,2022, hlm.24.
48 Vol. 18 No. 2 , December 2022 microfinance institutions.
C. RESULT AND DISCUSSION
1. Legal Basis for Sharia Cooperation through Law No. 1 of 2013 about Microfinance Institutions.
The establishment of a microfinance institution should at least meet the following requirements: (a) its form is as a legal entity. (b) it has capital; and (c) it has a business license whose procedures are regulated in this law9. The form of legal entity as mentioned in Article 4 letter a is: (a) Cooperation; and (b) limited liability company10. The source of Micro Finance Institution’s capital is adjusted with the form of the legal entity whose amount is regulated through Financial Services Authority’s Regulations. Micro Finance Institution’s activities involve business development services and society empowerment, deposits management, and business development consultation services. Provisions regarding loan interest rates or financing yields are regulated in Government Regulations11.
Before carrying out business activities, microfinance institution should have a business license from the Financial Authority Services. For having business license as mentioned in paragraph (1), the minimum requirements which should be fulfilled are: (a) having organizational structure and management; (b) having capital; (c) ownership evidence; and (d) having an eligibility work plan. Further provisions regarding capital as mentioned in Article 4 letter b, about microfinance institution ownership as mentioned in Article 8, and procedures for business license as mentioned in Article 9 are regulated in the Financial Authority Services Regulation12. The distribution of loans or finances and management of deposits by microfinance institution as mentioned in Article 11 paragraph (1) is carried out conventionally or based on sharia principles. Business activities based on sharia principles as mentioned in paragraph (1) should be carried out in accordance with sharia fatwas issued by the National Sharia Council, Indonesian Ulema Council13. To carry out business activities based on sharia principles as mentioned in Article 12 paragraph (2), microfinance institution is required to establish a sharia supervisory council. The responsibilities of sharia supervisory council as mentioned in paragraph (1) are providing advice and suggestions to the directors or management and supervising the activities of microfinance institution, in order to carry out its activities in accordance with sharia principles14.
In carrying out business activities, microfinance institution is prohibited from: (a) accepting deposits in the form of demand deposits and participate in payment traffic; (b) conducting business activities in foreign currencies; (c) conducting insurance business as an insurer; (d) acting as guarantee; (e) providing loans or finances to other Micro Finance Institutions, except in the context of solving liquidity problems within the same city area; and (f) conducting other business outside its main business activities as mentioned in Article 11 paragraph (1)15. Based on the conditions stated above, microfinance institution in the form of cooperation as business entities can accept any deposits in the form of account savings or term deposit. As protections for depositors and public, Financial Authority Services have authority to take actions to prevent losses of depositors and also public which include: (a) providing information and education to the public about the characteristics and business activities of
9 Ibid, Pasal 4.
10 Pasal 5 ayat 1.
11 Pasal 7 dan Pasal 11
12 Pasal 9 ayat (1) dan (2) dan Pasal 10.
13 Pasal 12 ayat (1) dan (2).
14 Pasal 13 ayat (1) dan (2)
15 Pasal 14.
Legal Reformulation of Sharia… Surya, Ruben Sandi
Al-Ahkam 49
microfinance institution; (b) asking microfinance institution to stop its activities if it engages potentially harmful activities to general societies; and (c) other activities which are considered necessary in accordance with this law.
Financial Authority Services can provide depository complaint services center which include: (a) preparing a set of complaint services for depositors who have been aggrieved by a microfinance institution; (b) creating a loss complaint mechanism; and (c) facilitating the resolutions for loss complaints received16. The development, regulation and supervision of microfinance institution are carried out by the Financial Authority Services. In carrying out the guidance as previously mentioned, Financial Authority Services coordinate with both the Ministry which is in charge for cooperation affairs and Ministry of Home Affairs. The guidance and supervision as mentioned in paragraph (1) is delegated to Regency or City Government. In case, if Regency or City Government is not ready, Financial Authority Services can delegate the development and supervision to other designated institutions as mentioned in paragraph (1).
The provisions regarding development and supervision delegated to the regency or city Government as mentioned in paragraph (3) and other designated institutions as mentioned in paragraph (4) are regulated in the Financial Authority Service Regulations17.
Microfinance institution is required to submit several things to the Financial Authority Services which includes: (a) financial reports every four months; (b) other reports established by Financial Authority Services Regulations. Microfinance institution is required to publish its financial reports in order to apply the principle of transparency18. Those who violate the provisions as mentioned in Article 6, 8, 11, 12 paragraph (2), Article 13 paragraph (1), Article 14, 18, 24, 27, 29 paragraph (1), and Article 30 will get administrative penalty in the form of: (a) monetary fines, (b) written warning; (c) suspension of business; (d) discontinuation of Microfinance Institution directors or management, and nominating and selecting temporary successor up to the general meeting of shareholders or cooperation members decide a permanent successor with the approval from Financial Authority Services; or (e) discontinuation of business license19. The enforcement of administrative penalty as mentioned in paragraph (1) is in accordance with the level of the violation committed. Further provisions regarding management and application of administrative penalty as mentioned in paragraph (1) are regulated in the Financial Authority Service Regulations20. Criminal provisions are regulated in Articles 34-38 of Law 1 of 2013, where one of the actions prohibited to be carried out by everyone is running a Microfinance institution business without any license as regulated in Article 9 paragraph (1) can be punished with imprisonment 1 year for a minimum and 3 years for a maximum, and a minimum fine is IDR. 50,000,000. – and a maximum is IDR.
1,000,000,000.
When this law was applied, Village Banks and Barns, Market and Employee Banks, Village Credit Banks, District Credit Agencies, People's Small Business Credit, Sub-district Credit Institutions, Village Production Work Bank, Rural Credit Business Entity, trust finance, Muhammadiyah Trust Finance, and other similar institutions can still operate up to one years since this law had been applied21. The institutions as mentioned in paragraph (1) are required to obtain a business license from Financial Authority Services no longer than one year after this law had been applied22. Financial Authority Services and the ministry which are responsible for cooperation affairs and Ministry of Home Affairs should conduct an inventory of microfinance institutions which has not legally incorporated yet. The inventory of microfinance
16 Pasal 25 dan Pasal 26.
17 Pasal 28 ayat (1),(2),(3),(4) dan (5).
18 Pasal 30.
19 Pasal 33. Ayat (1)
20 Pasal 33 ayat (2) dan (3).
21 Pasal 39 ayat (1).
22 Pasal 39 ayat (1) dan (2).
50 Vol. 18 No. 2 , December 2022 has applied. In carrying out an inventory of microfinance institutions as mentioned in paragraph (1) Financial Authority Services and the ministry which are responsible for cooperation affairs, and Ministry of Home Affairs can cooperate with other institutions which have adequate infrastructures23.
The implementation rules of this law should be appointed no longer than two years after this law had been applied24. This law will be valid after 2 (two) years from the date of promulgation25. In Indonesia, there are many non-bank financial institutions which carry out business activities in financial sector which help the society a lot. Those institutions need to be developed especially for its institutionally and legally because they have helped a lot to improve society's economy, particularly those who are poor and low-income people. Financial services provided by microfinance institutions to the public are required to be implemented based on sharia principles.
An important of legal reformulation made in the implementation of Law No. 1 of 2013 to strengthen sharia cooperation is to give authority to the National Sharia Council, that is Indonesian Ulema Council to conduct the development, regulation and supervision toward sharia-based microfinance institutions. The development, regulation and supervision of microfinance institutions cannot only be carried out by the Financial Authority Services as mentioned in the Article 28 paragraph (1) of Law No. 1 of 2013 about Microfinance Institutions due to the fact that microfinance institutions business activities include business development services and community empowerment, either through loans or financing in micro-scale businesses to members and society, deposit management and providing business development consultation are not only carried out conventionally but also based on sharia principles.
2. Strategic Efforts in Strengthening Sharia Cooperatives in Indonesia
Basically, strategic efforts in strengthening Islamic Cooperation in Indonesia can be seen from the depositor and society’s protection perspective in Microfinance Institutions. With this protection, public will have a sense of trust to deposit and utilize the services of those institutions.
The business activities of microfinance institutions based on sharia principles should be carried out in accordance with sharia edicts issued by the National Sharia Council, Indonesian Ulema Council. To carry out business activities based on sharia principles, microfinance institutions are required to establish a sharia supervisor council. It is responsible to provide advices and suggestions to the directors or management and supervise the activities of microfinance institutions so it can run based on sharia principles.
In fact, public both as depositors and consumers are legally entitled to have good protection according to Articles 13 and 14 of Law No. 1 of 2013, that is protection of depositors and the public, the Financial Authority Services has the authority to take actions to prevent losses to be happened. It can provide depository complaint services which include: (a) preparing a set of complaint services for depositors who have been aggrieved by a microfinance institution; (b) creating a loss complaint mechanism; and (c) facilitating the resolutions for loss complaints received. In addition, according to Law Number 8 of 1999 about Consumer Protection. It is the efforts which guarantee legal certainty to provide consumers’ protection26. Consumers are the users of goods and services available in the society, either for the benefit of themselves, their families, other people and other living things but not
23 Pasal 40 ayat (1), (2) dan (3).
24 Pasal 41.
25 Pasal 42
26 Pasal 1 angka 1 UU Nomor 8 Tahun 1999 Tentang Perlindungan Konsumen.
Legal Reformulation of Sharia… Surya, Ruben Sandi
Al-Ahkam 51 for sale27.
Business actors are any individual or business entity, either in the form of a legal or illegal entity, which is established and have a position, or carries out their activities in Indonesia, either individually or groups through agreements on the implementation of activities economic sector28. Service is a merit in the form of work or achievement which is provided for public to be utilized by consumers29. Microfinance institutions are the institutions specifically established to provide business development services and community empowerment, either through loans or financing in micro-scale businesses to members and the public, managing deposits, as well as providing business development consulting services that are not solely for profit30. The deposits are funds entrusted by society to microfinance institution in the form of savings or deposits based on deposit agreement31. Loans are the provision of funds which is provided by microfinance institution to the public which should be returned based on the time specified in the agreement32. Financing is the provision of funds which is provided by microfinance institution to the public which should be returned based on the time specified in the agreement with sharia principles33. Depositor are those who save their funds in a microfinance institution based on an agreement34.
Based on operational definition terminology contained in Law No. 8 of 1999 and No. 1 of 2013, it can be concluded that Microfinance Institutions are included in the definition of Business Actors based on Law No. 8 of 1999 about Consumer Protection because it has legal entities, capital and business license based on the provisions mentioned in the Article 4 of Law No. 1 of 2013. The form of microfinance institution legal entity can be a cooperation or limited liability company which should carry out their activities within Indonesia, with a more specific area in a village, sub-district, district or city area. The scope of microfinance institution business area is adjusted based on its scale as regulated in the Article 16 of Law No. 1 of 2013.
The activities of microfinance institution are business development services and community empowerment, either through loans or financing in micro-scale businesses to members and society, deposit management and providing business development consultation. So that, the people who are included as depositors, debtors and recipients of financing facilities which are provided by microfinance institution are consumers in the service sector because they are protected by the Law No. 8 of 1999 about Consumer Protection.
In the context of Islamic cooperation based on microfinance institutions, the service users or consumers are the society or members. Their protection is firstly carried out by microfinance institutions through providing transparency information35. The state where te
27 Ibid, Pasal 1 angka 2.
28 Ibid Pasal 1 angka 3.
29 Ibid Pasal 1 angka 5.
30 Pasal 1 angka 1 UU No 1 Tahun 2013 Tentang Lembaga Keuangan Mikro.
31 Ibid, Pasal 1 angka 2.
32 Ibid, Pasal 1 angka 3.
33 Ibid, Pasal 1 angka 4.
34 Ibid, Pasal 1 angka 5.
35 Pasal 2 UU No 1 Tahun 2013 Tentang LKM mengatur LKM berasaskan Keadilan, kebersamaan, kemandirian, kemudahan, keterbukaan, pemerataan, keberlanjutan dan kedayagunaan dan kehasilgunaan. Asas keadilan adalah memberikan kesempatan yang sana kepada masyarakat, terutama masyarakat miskin dan/atau berpenghasilan rendah untuk mendapatkan pelayanan dari LKM. Asas kebersamaan adalah suatu kegiatan yang dilakukan secara bersama-sama untuk kepentingan bersama. Asas kemandirian adalah suatu kegiatan yang dilakukan tanpa banyak tergantung kepada pihak lain, baik dari aspek sumber daya manusia maupun permodalan. Asas kemudahan adalah bahwa prosedur pembiayaan dan penyimpanan dana dalam LKM dibuat sesederhana mungkin. Asas keterbukaan adalah suatu kegiatan usaha yang proses pengelolaannya dapat diketahui oleh masyarakat. Asas pemerataan adalah pemberian pinjaman atau pembiayaan yang menjangkau seluruh masyarakat miskin dan/atau berpenghasilan rendah. Asas keberlanjutan adalah suatu usaha yang dilakukan secara terus menerus dan berkesinambungan yang tidak dibatasi oleh waktu tertentu. Asas kedayagunaan dan kehasilgunaan adalah suatu kegiatan pemberdayaan sekaligus mendayagunakan usaha dan layanan keuangan mikro untuk masyarakat miskin dan/atau berpenghasilan rendah.
52 Vol. 18 No. 2 , December 2022 depositors and public through Financial Authority Services.
In Law No. 1 of 2013, the offenders’ penalty are administrativelly and criminallly regulated as stated in the Articles 33-38 of Law No. 1 of 2013. The protection of Microfinance Institutions consumers as regulated is aligned with the objectives of consumer protection as stated in the Consumer Protection Law, they are: (1). increasing consumer awareness, ability and independence to protect themselves; (2). Raising their dignity by preventing them from negative excesses in using goods and services; (3). Improving their empowerment in selecting, determining and demanding their rights as consumers; (4). Creating their protection system which includes the elements of legal certainty and transparacy information and convenience access to get information; (5). Raising awareness of business actors about the importance of consumer protection, so they will be honest and responsible in running their business; ;(6).
Improving the quality of goods and services wchich guarantee the continuity of goods productions, services, health, comfort, security and consumer safety business36. The protection of microfinance institutions consumers as mentioned before is in line with fulfilling consumers' rights to have correct, clear and honest information about the conditions and guarantees of goods and services37 (Article 24 of Law No. 1 of 2013), and the right to have advocacy, as a proper protection and efforts to solve consumer legal action38 (vide articles 25 and 26 of Law 1 of 2013).
Legal instruments which protect consumers are not intended to extinguish business actors, but it is used to protect the consumer to encourage a healthy business climate which will encourages the inception of other resilient companies in dealing with the competition through the provision of qualified goods and services39. Therefore, the issuance of implemention rules for Law No. 1 of 2013 through Government Regulations is a strategic movement, so it can be implemented optimally with the aims to increase access to micro-scale funding for the community, economic empowerment and community productivity, income and welfare of the community, especially those who are poor and low-income.
Actually, The government has created the Regulation Number 7 of 2021 about the convenience, Protection & Empowerment of Cooperation, Micro, Small and Medium Enterprises. The regulation regarding Cooperation as Business with sharia principles are mentioned in the provisions of Articles 13, 14, 15, 16, 17 and 18. Those provisions are based on the researcher point of view about the form of sharia cooperation, the affirmation of cooperation based on sharia principles, and savings and loan businesses which can be carried out electronically. There are no provisions which technically regulate the implementation of Law No. 1 of 2013, so those regulations can be implemented properly, especially in protecting the interests of public as members, customers and depositors of funds in Islamic Cooperations.
In other words, it means that government regulation No. 7 of 2021 is not an implemention Rules as mandated by Law No. 1 of 2013 about microfinance institutions.
36 Pasal 3 UU Perlindungan Konsumen.
37 Pasal 4 angka 3
38 Pasal 4 angka 5.
39 Penjelasan UU No 8 Tahun 1999.
Legal Reformulation of Sharia… Surya, Ruben Sandi
Al-Ahkam 53 D. CONCLUSION
Legal reformulation of the Sharia Cooperation Strengthening in Indonesia was carried out through the formulation of Implemention Rules as mandated by Law No. 1 of 2013 about Microfinance Institutions by giving authority to the National Sharia Council, the Indonesian Ulema Council to develop, regulate and supervise Sharia-based Microfinance Institutions in Indonesia.
The state of legal vacuum is the absence of Implemention Rules of Law No. 1 of 2013 which has resulted the absence not only the protection of public, members of microfinance institutions, Village Banks and Granaries, Market, Employee, Village Credit Banks, Sub-district Credit Agencies, Small Enterprises, District Credit Institutions, Village Production Bank, Rural Credit Enterprises, trust finance, Muhammadiyah trust finance, and other similar institutions and but also its business activities.
National Sharia Council, Indonesian Ulema Council is expected to propose to the President of Indonesia to publish a Government Regulation about implemention rules for Law No. 1 of 2013 about Microfinance Institutions.
E. REFERENCES
The Constitution No. 25 of 1992 about Cooperation
The Constitution No. 1 of 2013 about Microfinance Institution The Constitution No. 8 of 1999 about Consumer Protection
Government Regulation No. 7 of 2021 about the Convenience, Protection & Empowerment of Cooperation, Micro, Small and Medium Enterprises.
Lisnawati, Koperasi Dalam Sistem Perekonomian di Indonesia/ Prof. Carunia Mulia Firdausi,MADE,P.Hd,APU (ed).(Jakarta: Yayasan Obor Pustaka,2018).
Johny Ibrahim, Teori dan Metodologi Penelitian Hukum Normatif, Edisi revisi, Cetakan keempat (Malang: Bayumedia Publishing,2011).
Pedoman Penulisan Disertasi Program Studi Doktor Hukum, Pascasarjana Universitas Muhammadiyah Sumatera Utara,2022.
Ahmad Subagyo, Pengawasan Koperasi di Indonesia (Jakarta: Mitra Wacana Media, 2017).
https://www.bps.go.id/pressrelease/2022/07/15/1930/persentase-penduduk-miskin-maret-2022- turun-menjadi-9-54-persen.html
https://www.gramedia.com/literasi/tujuan-negara-indonesia-berdasarkan-uud/
https://koperasi.bappenas.go.id/portal/portal/index7f12.html?page=koperasiindonesia#:~:text=Kope rasi%20di%20Indonesia%2C%20menurut%20UU,yang%20berdasar%20atas%20asas%20kekel uargaan
https://rechtsvinding.bphn.go.id/ejournal/index.php/jrv/article/view/7/68.
