Legal Protection of Savings and Loan Cooperative Members' Funds Related to Payment Delays and Bankruptcy in Economic Development

Abstract

This research was conducted with the aim of knowing the legal protection of KSP members' funds, then analyzed using the theory of legal protection with an economic approach. The scope of the research includes that cooperative members' funds are only covered by the KSP management. Summary of the problem in the research, currently there are many cases of KSP failing to pay cooperative members, due to irregularities carried out by KSP Management, to the point where KSP is declared bankrupt. However, the provisions of the law regarding cooperatives do not yet regulate the protection of KSP members' funds. The findings from this research are the amendment of Law Number 25 of 1992 to Law Number 17 of 2012 and the Decree of the Minister of Cooperatives (Kepmenkop) Number 351/Kep/XII/1998, these three regulations do not yet regulate the protection of KSP members' funds. Then, this research uses a type of juridical-normative research and is supported by literature study, and from the results of this research it is found that the protection of KSP members' funds is only handled by the KSP management and is not regulated in the provisions of the Cooperative Law and there is no guarantee institution for KSP members' funds such as banks, namely, Deposit Insurance Corporation (LPS). Therefore, it is necessary to establish legal provisions that regulate the protection of KSP members' funds and establish a deposit insurance agency to guarantee members' funds, apart from being paid by the KSP management, in order to provide legal certainty and guarantee the protection of KSP members' savings funds.