Indonesia’s Government Regulation 7 of 2021 (GR 7/2021)- an implementing regulation of the Omnibus Law — looks to provide greater protection and empowerment to Indonesia’s cooperatives, micro, small, and medium-sized enterprises (MSMEs).

Among other things, the implementing regulation has introduced new provisions to assist Indonesian cooperatives. GR 7/2021 reduces the requirement of primary cooperatives from 20 members to nine, and cooperatives can now be either single-purpose or multi-purpose cooperatives, aimed at attracting more members through this enterprise.

GR 7/2021 also allows for the establishment of shariah-based cooperatives, given the entity must contain the word ‘shariah’ in the official name, and the shariah principles must be stated in the cooperatives’ articles of association.

ICA-AP undertook the legal framework analysis of its member countries as part of the #coops4dev project. The legal framework analysis of Indonesia deals with the extant cooperative law in Indonesia, namely the Co-operative Law no. 25/1992 passed in the year 1992 and also covers the historical evolution of cooperatives laws in Indonesia since 1915. Read more.