A Paradigm Shift in Cooperative Principles: The Case of the Merah Putih Cooperative in Indonesia Zulhendrawan
Islamic University of Bandung, Bandung, Indonesia
Abstract
The existence of cooperative institutions in Indonesia is a constitutional mandate in accordance with the explanation of Article 33 Paragraph 1 of the 1945 Constitution. The government^s strategic program in developing Cooperative institutions is realized through the establishment of the Merah Putih Cooperative, which is expected to create community welfare, although a number of criticisms have emerged regarding provisions in its regulations that are considered to be contrary to the basic principles of Indonesian cooperative institutions and the International Co-operative Alliance (ICA). Therefore, it is necessary to conduct research on how the paradigm shift in the principles of cooperative institutions occurs in the practice of the Merah Putih Cooperative, and its implications for the identity of Cooperative institutions in Indonesia. This research presents innovations regarding the paradigm shift in the principles of Cooperative institutions in the Merah Putih Cooperative program. The analysis links the provisions of laws and regulations with the reality of policy implementation. Through normative legal research using secondary and tertiary legal materials presented qualitatively and analyzed descriptively and prescriptively, the results obtained indicate a paradigm shift in the principles of Cooperative institutions in the Merah Putih Cooperative, related to the principle of voluntary and open membership and the principle of democratic management. However, these changes do not eliminate the identity of the Cooperative institution as a business entity based on the principles of family and mutual aid.
Keywords: Cooperative, Notary, Merah, Putih
Topic: Law and Ethics in Terms of Islamic Perspective