Legal Literacy — This article discusses the Nominee Arrangement in the Ownership of Cooperative Assets, the gap between regulations related to the recording of assets owned by Cooperatives, and practices in the field that are still ineffective.

Co-operative Business Entity

Cooperatives are one form of business entity with legal entity as its existence is recognised through Law No. 25/1992 on Cooperatives as last amended by Law No. 6/2023 on the Stipulation of PERPPU No. 2 Year 2022 on Job Creation into Law (Cooperatives Law). In business activities, the cooperative form of business entity is often underestimated by business people. This is because business people are more inclined to choose the Limited Liability Company (PT) form of business entity rather than a Cooperative.

One of the consequences of the recognition of the Cooperative as a legal entity is that it has its own assets, which means that the assets are separate from the assets of the founders or administrators or members. In line with the statement put forward by the author, juridically this is in accordance with the formulation of Article 1 number 26 of the Regulation of the Minister of Cooperatives and Small and Medium Enterprises No. 8 of 2023 concerning Savings and Loan Businesses by Cooperatives (PMKUKM No. 8/2023) which states that, "assets are assets owned and managed by the Cooperative to run…