Legal Reconstruction of the Credit Union Operation in Indonesia for Community Welfare Based on the Pancasila Justice Value

Abstract

This research takes the formulation of the problem of why is the regulation of the implementation of Credit Union activities not based on the value of justice and how is the reconstruction of regulations for implementing Credit Union activities in Indonesia based on the value of justice. This research uses normative legal research methods and empirical legal research where the research specification used in this research is descriptive-analytical. The Primary data sources are based on data or facts and legal cases obtained directly through research in the field and Secondary data is done through literature study. The result of the research shows that the regulation on the implementation of Credit Union activities in Indonesia has not been based on the value of justice, because Credit Unions, which in their implementation are based on the Model Law for Credit Unions, are still analogous to the Savings and Loans Cooperative which in its implementation is based on Government Regulation Number 9 of 1995 concerning Implementation Savings and Loans Business Activities by Cooperatives. There are differences in the recruitment of members, forms of education, and indicators of loan requirements and institutional health, it is necessary to reconstruct the regulations for implementing Credit Union activities in Indonesia based on the value of justice. Reconstruction of Law Number 25 of 1992 concerning Cooperatives can be done by adding new paragraphs in Article 44, namely; (4) The implementation of savings and loan business activities by the Credit Union is regulated based on the Model Law for Credit Union.