The Indonesian Consumer Protection Law for Credit Union Depositors in Credit Union Failures: Quo Vadis?
Abstract
The 2023 credit union reforms in Indonesia have yet to thoroughly manage the protection system for credit union customers. Discriminative settlements are applied when credit unions fail to return savings. Unlike insurance companies and banks, their customers are fully protected by the Deposit Insurance Corporation when the financial institutions become insolvent. The study aims to analyze the consumer protection law implemented for credit union depositors upon the enactment of Law No. 4 of 2023 by focusing on 3 crucial issues: dual settlement of credit union regulation and credit union is covered in the Financial Services regime as well as consumer law protection should credit unions encounter failures. It is a normative and conceptual study which employs statutory law approaches to draft legal arguments on quo vadis credit union consumer protection law. The study shows that regulation reforms have successfully ended the dual settlement. However, the regulation reforms merely demonstrate the inclusion of credit unions within the financial services regime under the Financial Services Authority without providing any protection regulation addressed to credit union customers should credit unions fail. As a result, credit union depositors are unable to retain their rights due to the legal protection unavailability.
Downloads
References
Abib, Agus, B. Heryanti, and Dhian Astanti. “Konsep Lembaga Penjamin Simpanan Pada Koperasi Indonesia.” Arena Hukum 13, no. 3 (2020): 460–78. https://doi.org/10.21776/ub.arenahukum.2020.01303.4.
Agency, U S, and International Development. “Koperasi Simpan Pinjam Terdampak Pandemi Covid-19 Studi Diagnostik Likuiditas Koperasi Simpan Pinjam Terdampak Pandemi Covid-19.” Edited by USAID EGSA, 2021.
Alfiani, H N, A A Nasrulloh, E A Nathalian, and ... “Peran Otoritas Jasa Keuangan (OJK) Dalam Mengawasi Koperasi Simpan Pinjam Dan UMKM Di Indonesia.” Jurnal Pendidikan … 7 (2023): 3957–65. https://doi.org/https://doi.org/10.31004/jptam.v7i1.5875.
Aristawati, Salma Bugi, and Sri Hartati. “Perkembangan Koperasi Di Indonesia Sebagai Implementasi Ekonomi Pancasila.” JEB17 : Jurnal Ekonomi Dan Bisnis 7, no. 02 (September 30, 2022): 97–110. https://doi.org/10.30996/jeb17.v7i02.7360.
Azizah, Siti Nur, and Vita Mahardhika. “Analisis Hukum Penjatuhan Pidana Pelaku Tindak Pidana Penipuan Dan Penggelapan Koperasi Simpan Pinjam Indosurya.” Novum: Jurnal Hukum, 2024, 190–201. https://doi.org/https://doi.org/10.2674/novum.v0i0.61472.
Bauer, Keldon. “Detecting Abnormal Credit Union Performance.” Journal of Banking & Finance 32, no. 4 (2008): 573–86. https://doi.org/https://doi.org/10.1016/j.jbankfin.2007.04.022.
Bayuaji, Rihantoro, Suwarno Abadi, and Dwi Elok Indriastuty. “Ensuring Legal Certainty: The Disbursement of Bank Guarantees.” Jhbbc, 2024, 21–31. https://doi.org/https://doi.org/10.30996/jhbbc.v7i1.9747.
Boldin, Robert J, Keith Leggett, and Robert Strand. “Credit Union Industry Structure: An Examination of Potential Risks.” Financial Services Review 7, no. 3 (1998): 207–15. https://doi.org/https://doi.org/10.1016/S1057-0810(99)00010-4.
Brushwood, James D, Curtis M Hall, and Stephen J Lusch. “Credit Unions and Earnings Management to Mitigate Political Scrutiny over Tax-Exempt Status.” Journal of Accounting and Public Policy 41, no. 4 (2022): 106907. https://doi.org/https://doi.org/10.1016/j.jaccpubpol.2021.106907.
Caldarelli, Adele, Clelia Fiondella, Marco Maffei, and Claudia Zagaria. “Managing Risk in Credit Cooperative Banks: Lessons from a Case Study.” Management Accounting Research 32 (2016): 1–15. https://doi.org/https://doi.org/10.1016/j.mar.2015.10.002.
Cuevas, Carlos E, and Juan Buchenau. Financial Cooperatives: Issues in Regulation, Supervision, and Institutional Strengthening. Washington DC: World Bank, Washington, DC, 2018.
Dadi, Muhammad Irfan, Muhammad Rizal, and Tetty Herawaty. “Good Corporate Governance dan Peran Otoritas Jasa Keuangan Dalam Kasus Penggelapan Dana Anggota Koperasi Simpan Pinjam (KSP) Indosurya.” Jurnal Bina Bangsa Ekonomika 16, no. 2 (2023): 516–28. https://doi.org/, https://doi.org/10.46306/jbbe.v16i2.388.
Diffa Ayu Nindyatami Savitri, Siska Puspitasari, and Clara Arneta Maharani. “Peranan Ojk Terhadap Pengawasan Keuangan Koperasi Simpan Pinjam.” CEMERLANG : Jurnal Manajemen Dan Ekonomi Bisnis 3, no. 3 (June 12, 2023): 1–7. https://doi.org/10.55606/cemerlang.v3i3.1320.
Edeki, Sunday O, Sunday E Fadugba, and Chaudry Masood Khalique. “Valuation of Deposit Insurance Black–Scholes Model Using Banach Contraction Principle.” Partial Differential Equations in Applied Mathematics 8 (December 2023): 100571. https://doi.org/10.1016/j.padiff.2023.100571.
Efrianto, Lintar Bagas Putra, and Diana Wiyanti. “Tanggung Jawab Bank Terhadap Nasabah Yang Dananya Terbukti Digunakan Oleh Karyawan Bank.” Jurnal Riset Ilmu Hukum, December 21, 2022, 107–12. https://doi.org/10.29313/jrih.v2i2.1457.
Ferraro, Olga, Elena Cristiano, and Stefania Veltri. “The Quality of Voluntary Sustainability Reports in the Italian Cooperative Credit Banks.” Journal of Co-Operative Organization and Management 12, no. 1 (2024): 100230. https://doi.org/https://doi.org/10.1016/j.jcom.2024.100230.
Follesdal, Andreas. “John Rawls’ Theory of Justice as Fairness BT - Philosophy of Justice.” edited by Guttorm Fløistad, 311–28. Dordrecht: Springer Netherlands, 2015. https://doi.org/10.1007/978-94-017-9175-5_18.
Forker, John, and Anne Marie Ward. “Prudence and Financial Self-Regulation in Credit Unions in Northern Ireland.” The British Accounting Review 44, no. 4 (December 2012): 221–34. https://doi.org/10.1016/j.bar.2012.09.001.
Fried, Harold O, C A Knox Lovell, and Philippe Vanden Eeckaut. “Evaluating the Performance of US Credit Unions.” Journal of Banking & Finance 17, no. 2 (1993): 251–65. https://doi.org/https://doi.org/10.1016/0378-4266(93)90031-8.
Getter, Darryl E. The Credit Union System: Developments in Lending and Prudential Risk Management. Congressional Research Service. Retrieved December. Vol. 1, 2021.
Glass, J Colin, Donal G McKillop, and Syamarlah Rasaratnam. “Irish Credit Unions: Investigating Performance Determinants and the Opportunity Cost of Regulatory Compliance.” Journal of Banking & Finance 34, no. 1 (2010): 67–76. https://doi.org/https://doi.org/10.1016/j.jbankfin.2009.07.001.
Goddard, John, Donal G. McKillop, and John O.S. Wilson. “Who Consumes the Credit Union Subsidies?” Journal of Financial Stability 69, no. August (2023): 101176. https://doi.org/10.1016/j.jfs.2023.101176.
Goddard, John, Donal G McKillop, and John O S Wilson. “Who Consumes the Credit Union Subsidies?” Journal of Financial Stability 69 (2023): 101176. https://doi.org/https://doi.org/10.1016/j.jfs.2023.101176.
Gomez-Biscarri, Javier, Germán López-Espinosa, and Andrés Mesa-Toro. “The Risk Implications of the Business Loan Activity in Credit Unions.” Journal of Financial Stability 56, no. July (2021). https://doi.org/10.1016/j.jfs.2021.100932.
———. “The Risk Implications of the Business Loan Activity in Credit Unions.” Journal of Financial Stability 56, no. July (October 2021): 100932. https://doi.org/10.1016/j.jfs.2021.100932.
Gómez‐Biscarri, Javier, Germán López‐Espinosa, and Andrés Mesa‐Toro. “Drivers of Depositor Discipline in Credit Unions.” Annals of Public and Cooperative Economics 93, no. 4 (December 6, 2022): 849–85. https://doi.org/10.1111/apce.12352.
Goth, Peter, Donal McKillop, and John Wilson. Corporate Governance in Canadian and US Credit Unions. Madison, WI: Filene Research Institute, 2012.
Hanim, Salwa Faeha. “Pengawasan Koperasi Simpan Pinjam Dan Pembiayaan Syariah Pasca Undang-Undang No 4 Tahun 2023 Tentang Pengembangan Dan Penguatan Sektor Keuangan.” Jurnal Hukum Bisnis 12, no. 02 (April 6, 2023): 91–99. https://doi.org/10.47709/jhb.v12i02.2231.
Hannafin, Kevin M G, and Donal G McKillop. “Deposit Insurance and Credit Unions: An International Perspective.” Journal of Financial Regulation and Compliance 15, no. 1 (January 1, 2007): 42–62. https://doi.org/10.1108/13581980710726787.
Harada, Kimie. “Pre- and Post-Merger Performances of Shinkin Banks in Japan.” Corporate Governance and Sustainability Review 2, no. 2 (August 20, 2018): 13–29. https://doi.org/10.22495/cgsrv2i2p2.
Hazarika, Angshuman, and Komal B T - Reference Module in Social Sciences Ray. “Cooperative Banks.” Elsevier, 2023. https://doi.org/https://doi.org/10.1016/B978-0-44-313776-1.00084-2.
Hessou, Helyoth, and Van Son Lai. “Basel III Capital Buffers and Canadian Credit Unions Lending: Impact of the Credit Cycle and the Business Cycle.” International Review of Financial Analysis 57 (2018): 23–39. https://doi.org/https://doi.org/10.1016/j.irfa.2018.01.009.
“Industry Overview—Credit Unions.” In Depository and Lending Institutions: Banks and Savings Institutions, Credit Unions, Finance Companies, and Mortgage Companies, 33–59, 2017. https://doi.org/https://doi.org/10.1002/9781119473404.ch2.
Jones, Paul A. “From Tackling Poverty to Achieving Financial Inclusion—The Changing Role of British Credit Unions in Low Income Communities.” The Journal of Socio-Economics 37, no. 6 (2008): 2141–54. https://doi.org/https://doi.org/10.1016/j.socec.2007.12.001.
Kamila, Fathya, Muhammad Rizal, Tetty Herawati, and Dodi Sukmayana. “Pengaruh Transparansi Terhadap Perkara Koperasi Simpan Pinjam Indosurya.” Coopetition : Jurnal Ilmiah Manajemen 14, no. 3 (November 1, 2023): 599–606. https://doi.org/10.32670/coopetition.v14i3.3857.
Karels, Gordon V, and Christine A McClatchey. “Deposit Insurance and Risk-Taking Behavior in the Credit Union Industry.” Journal of Banking & Finance 23, no. 1 (1999): 105–34. https://doi.org/https://doi.org/10.1016/S0378-4266(98)00074-0.
Leggett, Keith J, and Robert W Strand. “Membership Growth, Multiple Membership Groups and Agency Control at Credit Unions.” Review of Financial Economics 11, no. 1 (2002): 37–46. https://doi.org/https://doi.org/10.1016/S1058-3300(01)00032-5.
Lestari, Fitrianingsih Dwi, and Munawar Kholil. “Efektifitas Pembinaan Dan Pengawasan Koperasi Oleh Pemerintah Daerah (Studi Di Dinas Perdagangan, Tenaga Kerja, Koperasi Dan Usaha Kecil Menengah Kabupaten Karanganyar).” Jurnal Privat Law 6, no. 1 (2018): 46–59. https://doi.org/https://doi.org/10.20961/privat.v6i1.19226.
Mathuva, David M. “Drivers of Financial and Social Disclosure by Savings and Credit Cooperatives in Kenya: A Managerial Perspective.” Journal of Co-Operative Organization and Management 4, no. 2 (2016): 85–96. https://doi.org/https://doi.org/10.1016/j.jcom.2016.08.001.
Mathuva, David Mutua, and Josephat Mboya Kiweu. “Cooperative Social and Environmental Disclosure and Financial Performance of Savings and Credit Cooperatives in Kenya.” Advances in Accounting 35 (2016): 197–206. https://doi.org/https://doi.org/10.1016/j.adiac.2016.09.002.
Maychellina, Maychellina, and Abraham Ferry Rosando. “The Financial Services Authority’s Regulatory Role in Backdoor Listings in Indonesia.” Jhbbc, 2024, 1–9. https://doi.org/https://doi.org/10.30996/jhbbc.v7i1.9843.
McKillop, Donal, Declan French, Barry Quinn, Anna L. Sobiech, and John O.S. Wilson. “Cooperative Financial Institutions: A Review of the Literature.” International Review of Financial Analysis 71, no. May (2020): 101520. https://doi.org/10.1016/j.irfa.2020.101520.
McKillop, Donal G, and Barry Quinn. “Irish Credit Unions: Differential Regulation Based on Business Model Complexity.” The British Accounting Review 49, no. 2 (2017): 230–41. https://doi.org/https://doi.org/10.1016/j.bar.2016.07.001.
Messabia, Nabil, Edouich Beauvoir, and Chokri Kooli. “Governance and Management of a Savings and Credit Cooperative: The Successful Example of a Haitian SACCO.” Vision 27, no. 3 (February 13, 2022): 397–409. https://doi.org/10.1177/09722629221074130.
Nguyen, Linh H., John O.S. Wilson, Tuan Q. Le, Hiep N. Luu, Tram-Anh Nguyen, and Vinh X. Vo. “Deposit Insurance and Credit Union Lending.” Journal of Financial Stability 60 (June 2022): 101003. https://doi.org/10.1016/j.jfs.2022.101003.
Nola, Selvia, Suci Zalsabilah Basri, and Sylvi Nur Hafiza. “Legal Protection for Customer of Bankrupt Rural Bank (Bpr) in Indonesia.” Jurnal Hukum Bisnis Bonum Commune Volume 4, Nomor 1 Februari 2021, 2021, 109. https://doi.org/https://doi.org/10.30996/jhbbc.v4i1.4485.
Novkovic, Sonja, Anu Puusa, and Karen Miner. “Co-Operative Identity and the Dual Nature: From Paradox to Complementarities.” Journal of Co-Operative Organization and Management 10, no. 1 (2022): 100162. https://doi.org/10.1016/j.jcom.2021.100162.
Ompusunggu, Dicky Perwira, Depy Rizkika Indria Sutrisno, and Alexandra Hukom. “Konsistensi dan Efektivitas Peran Lembaga Keuangan Non Bank (Koperasi Simpan Pinjam) Sebagai Penggerak Perekonomian Indonesia.” Jurnal Cahaya Mandalika ISSN 2721-4796 (Online) 4, no. 1 SE-Articel (February 3, 2023): 689–96. https://doi.org/10.36312/jcm.v4i1.1449.
Pavlovskaya, Marianna, and Rob Eletto. “Credit Unions, Class, Race, and Place in New York City.” Geoforum 127 (2021): 335–48. https://doi.org/https://doi.org/10.1016/j.geoforum.2018.05.020.
Pigeon, Marc-Andre. “Against the Grain: The Unusual Case of Saskatchewan’s Credit Union Deposit Insurance Scheme,” 2019.
Putera, Andika Persada. “Prinsip Kepercayaan Sebagai Fondasi Utama Kegiatan Perbankan.” Jurnal Hukum Bisnis Bonum Commune 3, no. 1 (2020): 457294. https://doi.org/DOI : https://doi.org/10.30996/jhbbc.v3i1.2984.
Rahmawati, Dewi, and Angga Septian Prayoga. “Analisis Pemeriksaan Kesehatan Koperasi Syariah Berdasarkan Petunjuk Teknis Deputi Perkoperasian Nomor 15 Tahun 2021.” Jurnal Akuntansi, Bisnis Dan Ekonomi Indonesia (JABEI) 3, no. 1 (2024): 20–27. https://doi.org/https://doi.org/10.30630/jabei.v3i1.189.
Railienė, Ginta, and Lina Sinevičienė. “Performance Valuation of Credit Unions Having Social and Self-Sustaining Aim.” Procedia - Social and Behavioral Sciences 213 (2015): 423–29. https://doi.org/https://doi.org/10.1016/j.sbspro.2015.11.561.
Rihmaniya, Suci Binta, and Elfrida Ratnawati. “Perlindungan Hukum Nasabah Koperasi Simpan Pinjam (KSP) Intidana Pasca Pailit.” Jurnal Tana Mana 4, no. 1 (2023): 72–83. https://doi.org/https://doi.org/10.33648/jtm.v4i1.261.
Rijn, Jordan van. “The Cooperative Identity at U.S. Credit Unions.” Journal of Co-Operative Organization and Management 10, no. 1 (2022): 100152. https://doi.org/https://doi.org/10.1016/j.jcom.2021.100152.
Ryder, Nicholas, and Clare Chambers. “The Credit Crunch – Are Credit Unions Able to Ride out the Storm?” Journal of Banking Regulation 11, no. 1 (December 21, 2009): 76–86. https://doi.org/10.1057/jbr.2009.14.
Siregar, Kamaluddin Pane; Bismar Nasution; Sunarmi Sunarmi; Mahmul. “Pengawasan Dan Penindakan Sebagai Upaya Perlindungan Hukum Terhadap Dana Masyarakat Yang Disimpan Di Lembaga Koperasi Simpan Pinjam (KSP).” USU LAW JOURNAL, no. Vol 7, No 2 (2019) (2019): 57–67. https://jurnal.usu.ac.id/index.php/law/article/view/23767/10424.
Solahudin, Muhamad Sofyan, and Zeehan Fuad Attamimi. “Perlindungan Hukum Bagi Koperasi Simpan Pinjam Dalam Penyelesaian Kredit Macet (Studi Lembaga Keuangan Mikro Dana Yaksa Mino Saroyo Kabupaten Cilacap).” Journal Equitable 9, no. 2 (2024): 16–33. https://doi.org/https://doi.org/10.59066/harmonization.v2i1.573.
Sosiawan, Arif Budi, and Suparnyo Suparnyo. “Urgensi Pembentukan Lembaga Penjamin Simpanan Koperasi Dalam Upaya Perlindungan Hukum Terhadap Anggota Koperasi Simpan Pinjam.” RIO LAW JURNAL 5, no. 2 (2024): 455–64. https://doi.org/http://dx.doi.org/10.36355/.v1i2.
Sumiyati, Yeti, Ratna Januarita, Tatty A Ramli, and Efik Yusdiansyah. “Konstruksi Hukum Terhadap Penetapan Bunga Tinggi Pada Investasi Yang Diselenggarakan Koperasi Simpan Pinjam.” Jurnal Magister Hukum Udayana (Udayana Master Law Journal) 10, no. 2 (July 30, 2021): 385. https://doi.org/10.24843/JMHU.2021.v10.i02.p14.
Tjandra, Antoni. “Kekosongan Norma Penentuan Bunga Pinjaman Financial Technology Peer to Peer Lending.” Jhbbc, 2020, 90–103. https://doi.org/https://doi.org/10.30996/jhbbc.v3i1.3077.
Tobing, Dwinoven Lumban, Reka Dewantara, and Setiawan Wicaksono. “Batasan Kewenangan Otoritas Jasa Keuangan Terhadap Lembaga Keuangan Mikro Berbentuk Badan Hukum Koperasi Simpan Pinjam Dalam Hal Terjadi Gagal Bayar.” Warkat 1, no. 2 (2021): 92–100. https://doi.org/https://doi.org/10.21776/warkat.v2n2.1.
Tuhumury, Harry A, Farida Tuharea, Anwar M Roem, and Universitas Yapis Papua. “Perlindungan Hukum Bagi Anggota Dan Nasabah Koperasi Simpan Pinjam” 8, no. 4 (2023): 5401–7. https://doi.org/https://doi.org/10.24815/jimps.v8i4.27359.
Unda, Luisa A, and Dinithi Ranasinghe. “To Pay or Not Pay: Board Remuneration and Insolvency Risk in Credit Unions.” Pacific-Basin Finance Journal 66 (2021): 101128. https://doi.org/https://doi.org/10.1016/j.pacfin.2019.03.005.
Worthington, Andrew C. “Determinants of Merger and Acquisition Activity in Australian Cooperative Deposit-Taking Institutions.” Journal of Business Research 57, no. 1 (January 2004): 47–57. https://doi.org/10.1016/S0148-2963(02)00283-7.
Wulandari, Maria Mu’ti, Anggitariyani Larasati Siswanta, and Nur Wakhid. “Analisis Hukum Pengawasan Koperasi Simpan Pinjam Oleh Dinas Tenaga Kerja, Koperasi dan UKM Kabupaten Banyumas.” In Prosiding Seminar Nasonal LPPM UNSOED, 13:77–84, 2023. https://doi.org/https://doi.org/10.20884/1.semnaslppm.2024.13.1.10574.
Zhang, Yaojie, and Benshan Shi. “Systematic Risk and Deposit Insurance Pricing.” China Finance Review International 7, no. 4 (October 11, 2017): 390–406. https://doi.org/10.1108/CFRI-12-2016-0133.
Zulkifli, Zulkifli, Wetria Fauzi, and Arya Putra Rizal Pratama. “Pengawasan Terhadap Perlindungan Hukum Konsumen Perbankan Oleh Otoritas Jasa Keuangan di Kota Padang.” Jhbbc, 2022, 25–41. https://doi.org/https://doi.org/10.30996/jhbbc.v5i1.5781.
Authors who publish with Jurnal Hukum Bisnis Bonum Commune agree to the following terms:
- Authors transfer the copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.. that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access)
