Familyhood principle and the cooperatives ideas in economic provisions in the Indonesian Constitution

Abstract

This article narrated the journey in Indonesian economic history and the dynamic development of the familyhood principle and the cooperatives ideas. The familyhood principle and the cooperatives ideas were chosen by the Founders of Indonesian Nation as the bases for regulating national economy in the Constitution of Indonesia. This choice was motivated by the economic history since the arrival of Europeans to conduct an international trade of spices in 1512 until the end of Dutch colonialism in 1942. The formulation of economic stipulations in the Constitution was aimed at transforming the economy from a colonial one to the democratic national economic system which is in accordance with the values and cultures of adat communities. To perform this economic transformation, cooperatives is chosen to be the business structure and also economic system. Cooperatives as an institution originating from European thoughts is believed to be in accordance with the values and cultures of adat communities that is communalistic, which in the Constitution is termed familyhood principle. The dynamics and development of familyhood principle are highly dependent on the political will of economic policymakers. However, since the birth of the Constitutional Court in the era of political democracy there were very interesting developments in Indonesia. The judicial review of the Cooperatives Law is an example in which Constitutional Court plays an important role in guarding the familyhood principle and the cooperatives ideas as the bases for regulating the national economy.