Concept Of Deposit Guarantee Institutions In Saving And Loan Cooperatives In Indonesia

Abstract

Cooperatives as the pillars of the Indonesian economy are aimed at the welfare of members in particular and the whole community in general to become a prosperous just society based on Pancasila. Implicitly, the 1945 Constitution of the Republic of Indonesia Article 33 paragraph (1) states that the economy is structured as a joint effort based on the principle of kinship. Article 33 of the 1945 Constitution as the legal basis for the formation of Law Number 25 of 1992 concerning Cooperatives. Based on data from the Ministry of Cooperatives and Micro, Small and Medium Enterprises of the Republic of Indonesia, up to 2015 the number of cooperatives in Indonesia was 212.135 with the distribution of active cooperatives totaling 150,223 and 61,912 inactive cooperatives including savings and loan cooperatives. Inactive savings and loan cooperatives can have implications for members as loanors when there is a bottleneck in disbursing their money. This study will examine the concept of deposit insurance institutions in savings and loan cooperatives in Indonesia. The theory used is Richard Posner's economic theory of law. The methodology in this research is this study is evaluative and comparative. The results of this study stated that the establishment of a guarantor savings deposit and savings cooperative in Indonesia must be formed by the government to provide guarantees to savings and loan cooperative members by revising Law Number 25 of 1992 concerning Cooperatives.