A Juridical Analysis of Modern Cooperative Governance Models in the Perspective of Cooperative Law and the Challenges of Digital Transformation

Abstract

The development of digital technology requires cooperatives to modernize their governance systems in order to remain competitive within an economic ecosystem that is increasingly driven by data and electronic services. However, Law Number 25 of 1992, which serves as the legal foundation for cooperatives in Indonesia, remains conventional and has not accommodated the needs of digital governance, resulting in inconsistencies with national digital regulations. This study aims to analyze the alignment of cooperative regulations with the demands of modern cooperative governance, identify normative gaps between the Cooperative Law and digital regulations such as the Electronic Information and Transactions Law (ITE Law), the Personal Data Protection Law (PDP Law), and Government Regulation No. 71/2019, and formulate the urgency of legal reform to support the digital transformation of cooperatives. This research employs a normative legal approach by examining statutory regulations and analyzing primary, secondary, and tertiary legal materials through a comprehensive literature review. The findings reveal that the Cooperative Law does not regulate essential digital governance mechanisms such as online meetings, e-voting, electronic record-keeping, digital audits, and member data protection. These regulatory gaps create legal uncertainty and operational risks for cooperatives. Therefore, regulatory reform is required to integrate digital governance principles in order to enhance transparency, accountability, and competitiveness of cooperatives in the technological era.