Abstract
The presence of types of financial institutions in Indonesia makes it easy for people to choose which financial services they need. Micro Waqf Bank is one of the Microfinance Institutions that applies sharia principles that are currently growing and developing. However, there are legal issues related to arrangements for organizing a Micro Waqf Bank with a cooperative legal entity, namely, there are two overlapping regulations, namely the Microfinance Institution legislation, and Cooperative regulations. The purpose of this study is necessary to find out whether the legal consequences arising in the process of establishment, implementation, or if there are problems encountered by Mikro Waqf Banks as a Sharia Microfinance Institution incorporated as a cooperative. This study uses a normative legal research method with a statutory approach and conceptual approach. This study shows that the dualism of Micro Waqf Bank arrangements gives rise to contradictions in the arrangements for the establishment, guidance, and supervision. The existence of this dualism of regulation also gives rise to legal consequences in the establishment of a Micro Waqf Bank incorporated as a cooperative. The legal consequences are related to the broader aspects of business activities based on MFI regulations compared to cooperative regulations. Legal consequences related to capital aspects that require Micro Waqf Banks have a certain amount of capital by MFI regulations. Then from the aspect of coaching and supervision in which there are an examination and evaluation, there is also a dualism which in the regulation of the function of the cooperative is carried out by the Ministry of Cooperatives but the existence of the MFI regulation of the fostering and supervision function is under the authority of the Financial Services Authority.
Highlights
In Indonesia, the development of technology and information has implications for the growth and development of financial institutions
The legal consequences are related to the broader aspects of business activities based on Microfinance Institutions (MFI) regulations compared to cooperative regulations
In Indonesia, there is a dualism of arrangements regarding Micro Waqf Bank as a Sharia Micro Financial Institution with a cooperative legal entity, which is regulated in Law Number 17 of 2012 concerning Cooperatives and Law Number 1 of 2013 concerning Microfinance Institutions
Summary
In Indonesia, the development of technology and information has implications for the growth and development of financial institutions. Legal issues related to MFIs have been going on for a long time but until now have not been adequately resolved.[5] Legal issues for MFIs in Indonesia are a common problem regarding MFIs (MFIs or Microfinance Institutions) encountered in other countries.[6] The legal problems faced in organizing MFIs generally start with the legality of collecting funds from the community This problem is due to the formulation of Article 16 paragraph (1) of Law Number 10 of 1998 concerning Banking (Banking Law) which states that each party that collects funds from the public in the form of deposits must first obtain a business license as a Commercial Bank or Credit Bank The people from the leadership of Bank Indonesia, except if the activities of collecting funds from the public referred to are governed by a separate law[7]. This means that before the existence of a special law governing MFI's business, MFIs were prohibited from
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