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The Politic of Law of Cooperative Supervision by Government on Law

THE IMPLICATIONS OF ASEAN ECONOMIC COMMUNITY (AEC) TO THE REGULATION OF COOPERATIVE SUPERVISION BY THE

C. The Politic of Law of Cooperative Supervision by Government on Law

oversight does not aim to reduce the independence of the cooperative, but rather maintain the existence of the cooperative to comply with their identity and be able to compete in a global world. If there is no supervision of the cooperative will lose direction and weak in a global competition.

C. The Politic of Law of Cooperative

Cooperative Law Politic of Law Period Explanation Law of the Republic

of Indonesia Number 14 of 1965

concerning Cooperatives

The Government may involve third parties in conducting surveillance

De-Officialisasi This law applies only 2 years, the

government began to involve third parties in the regulatory process

Part 2: Development and Supervision Article 55.

(1) In order to implement the provisions of Article 7 paragraph (1) This Act established the Directorate of Cooperatives as

organizational guidance / supervision of cooperatives and regulated by the President or on the authority of the Presidential Decree binding provisions of article 5 of this Act.

Law of the Republic of Indonesia Number 12 of 1967 on the Basic Principles of Cooperatives

The role of

government towards cooperatives became stronger after the G 30S / PKI tragedy The government contributes to all activities of the cooperative.

Appears CAS (cooperative

Accounting Services)

De-officialisasi The authority of government include providing guidance, supervision, protection and facilities to the cooperative

CHAPTER XI: The Role of Government Article 37

The government is obliged to provide guidance, supervision, protection and facilities to enable him to carry out the Cooperative as well as Article 33 of Law 1945 and its description.

Law of the Republic of Indonesia Number 25 of 1992 concerning

Cooperatives

CAS removed, the Government is no longer a "super auditors". The government does not control, just

coaching.

Supervision carried out independently by member

Otonomi Start a shift, from officialisasi towards autonomy by eliminating the role of government in terms of supervision

Law of the Republic of Indonesia Number 17 Year 2012 concerning Cooperatives

Supervision is done internally by the members.

Otonomi In this law the government's role was minimal, especially in terms of supervision, because the goal is the independence of the cooperative.

The role of government (the Minister) examination, Article 98

From the table above it can be seen legal politics cooperative oversight by the Government in Law 25/1992 is leading to the independence of the cooperative, which makes the cooperative as a business entity independent and strong organization, capital, and business. But the thing to note here is the absence of the State's role in oversight, this shows that the lack of oversight by the government refers to the government orientation on the growth of

cooperatives in terms of quantity rather than on quality so that supervision is done loosely, ie by a body or organ formed by members of his own (Internal monitoring).1

When linked with the identity of cooperatives, the cooperative supervision of legal political shift by the government in accordance with the co-operative identity, namely the independence or autonomy of

22 Paulus Effendi Lotulung, 1993, above n. 20

the cooperative. Cooperative autonomy requires a very minimal role of government in the cooperative, which is just as regulator.

While the overall control is left entirely to member cooperatives.

The independence or autonomy indeed are ideal for today's cooperative, but more needs to be seen is the entry into force of the ASEAN Economic Community in Indonesia. AEC is a new challenge for cooperatives, cooperative existence is tested through the AEC.

As explained earlier that the idea of AEC was born on the 5th ASEAN Summit in Singapore in 1992 through the Framework Agreement on Enhancing ASEAN Economic Cooperation, the same year when the Law 25/1992 was born. However, in terms of a vulnerable time, presumably the former Act 25/1992 not estimate their economic integration AEC (2015), so that the substance of the regulations in Law 25/1992 not reflect any response to the AEC.

The absence of supervision by the government in the Law 25/1992 of the Law of weakness in the face of the AEC. This is due to the absence of external oversight of government can facilitate cooperative to be affected by globalization. In addition, a national cooperatives are also required to align with cooperatives across ASEAN.

Otherwise da supervision, it is prone to cooperatives will terpengauh by globalization and the loss of identity.

Cooperative oversight by the government aimed to ensure the cooperative can still exist amid-amid globalization AEC with no loss of identity or family values in the Cooperative.

In addition, the implementation of cooperative independence as stipulated in Law 25/1992 must be real cooperative conditions and readiness of the field, in the face of globalization specially AEC.

Conditions in the field are very diverse cooperative, not all cooperatives are ready to face the AEC. Based on data from the Ministry of Cooperatives and SMEs, recorded 61 912 cooperatives currently inactive status and was dissolved by decree of the Minister of Cooperatives and Small and Medium Enterprises No. 114 / KEP / K.UKM.2 / XII / 2016 dated December 23, 2016. While the cooperative still active, amounting to 150 223 cooperatives have a different rank-different classifications.

Based on Minister of Cooperatives and SMEs No. 21 / Per / M.KUKM / IX / 2015 on Cooperatives rankings explained that cooperatives are ranked into four (4) categories / qualifications ie:

a. Cooperative with the qualification of

"Highly Qualified", with the title of AAA;

b. Cooperative with the qualification of

"Qualified", with the title of AAB;

c. Cooperative with the qualification

"Enough Qualified", with the title of ABB;

d. Cooperative with the qualification of

"Not Qualified", with the title of BBB.

The ranking is based on several indicators of assessment, namely: the institutional aspects of the cooperative;

aspects of the cooperative; the financial aspects of the cooperative; aspects of cooperative benefits for members;

cooperative beneficial aspects for society.

Thus the government can not identify the policy (political law) to the cooperative in the face of AEC. The government still must play a role in terms of surveillance, especially in the case of cooperative institutions. The government must ensure the cooperative can be run in accordance with their identity by not rule out the independence of the cooperative.

Supervision of cooperatives run by the government is the institutional sector including the establishment of an initial test of the cooperative. While the supervision of the business aspects and other aspects conducted independently by members or handed over to the umbrella organization of cooperatives, in this case Dekopin (Dewan Koperasi Indonesia). The delivery of the supervisory authority of the internal institutional aspects to Dekopin is a manifestation of the principle of independence of cooperatives as well as a chance to advance Dekopin.

IV. CONCLUSIONS AND SUGGESTIONS

AEC is very influential on cooperative arrangements in Indonesia. This is in accordance with the demands of regionalization want legal synergy and standardization. Law politics cooperative oversight by the government under Law 25/1992 was not able to answer the challenge of AEC that promote free trade based liberalism that demands standardization and maximum competence.

The absence of supervision accompanied by strict enforcement of government, organizing cooperatives cooperatives do not correspond to their identity so that cooperatives are not able to meet the standards and competencies maximum of AEC. Legal political oversight by the government cooperative ideal in order to face the AEC is to implement cooperative oversight of the governance carried out by the government and the cooperative movement container. The scope of cooperative oversight by the government and the container cooperative movement covers aspects of the cooperative that aspects of membership, institutional, business aspects, financial aspects, aspects of benefits to members, and aspects of benefit to the community.

Law No. 25 of 1992 concerning Cooperatives should be changed so that cooperatives are not eroded AEC challenge.

Cooperative policy upcoming government should regulate the authority and the jurisdiction of the cooperative movement in overseeing the cooperative. Supervision is done by promoting the strengthening of the cooperative that maintains the identity of cooperatives.

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