Legal Transplant of Modern Banking Concepts in the Culture of Mutual Cooperation Communities in Micro, Small and Medium Enterprises: The Idea of Partnership of Cooperative and Bank/Non-bank Financial Institutions as Micro Finance Institutions

DOI

10.2991/978-2-494069-23-7_6How to use a DOI?

Keywords

cooperative; finance institution of bank/non-bank; MSMEs; public services; subsidies

Abstract

This study aims to give a solution for a government that has established a Micro Financial Institution (MFI). In development, the purpose of this MFI is to fund micro-scale businesses for which Micro, Small and Medium Enterprises (MSMEs) do not work at their maximum. This thing caused development in technology and information, which MFIs should give service operational by digitalization. MSMEs, on the other hand, must obtain service financial security quickly and affordably. The normative juridical study was conducted in the form of an exploratory study, complete with regulation and conceptual approaches. Research results show that in the MSME community they still apply the concept of mutual cooperation as reflected in the principles of cooperative as well as trust in the Constitution. They do not yet know whether to draft financing or bank based on western concepts that are individual, absolute, and capital as well as cost-effective operational as in practice financing generally. Research conclusion: the idea of Partnership of Cooperation and Modern Bank/Non-Bank Financial Institutions (LKBB) to enter the MSME community with a culture of mutual cooperation is necessary. For support cost operational for LKBB in doing service to the public (public service obligation-PSO) is recommended for the government through the Financial Services Authority (OJK). Operational costs are agreed upon jointly by cooperatives and modern LKBB, rather than by government regulation.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Iwan Erar Joesoef
AU  - Yuliana Yuli Wahyuningsih
AU  - Sulastri
AU  - Satino
PY  - 2022
DA  - 2022/12/09
TI  - Legal Transplant of Modern Banking Concepts in the Culture of Mutual Cooperation Communities in Micro, Small and Medium Enterprises: The Idea of Partnership of Cooperative and Bank/Non-bank Financial Institutions as Micro Finance Institutions
BT  - Proceedings of the International Conference on Law Studies (INCOLS 2022)
PB  - Atlantis Press
SP  - 50
EP  - 70
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-494069-23-7_6
DO  - 10.2991/978-2-494069-23-7_6
ID  - Joesoef2022
ER  -