JURIDICAL STUDY ON THE LEGALITY OF MANAGING COMMUNITY REVOLVING FUND ACTIVITIES FOR THE EX NATIONAL PROGRAM EMPOWERMENT OF INDEPENDENT RURAL COMMUNITIES FROM THE PERSPECTIVE OF JOINT VILLAGE OWNED ENTERPRISES

In this research, the author raises the issue of the legality of managing community revolving fund activities for the former National Program for the Empowerment of Independent Rural Communities from the perspective of Joint Village-Owned Enterprises. The aim of the research is to find out the appropriate form of legal entity in the BUMDesma-LKD business unit and to find out the legal consequences of establishing a microfinance institution by a cooperative legal entity. Writing this thesis uses a normative juridical method with a statutory approach and a conceptual approach. The methods used in the research are the statue approach and conceptual approach by examining regulations related to BUMDes, cooperatives, limited liability companies and microfinance institutions and then linking them to relevant legal entity theories.Based on the results of the research and discussion, it can be concluded that the legal standing of BUMDesma-LKD as a legal entity is determined based on the Joint Village Head Regulation. The difference in the status of BUMDesma-LKD as a legal entity when viewed from a public law aspect is that its establishment is sufficient with a Joint Village Head Regulation, whereas if viewed from a private law aspect, registration must be carried out with the Ministry of Law and Human Rights to fulfill the principle of publicity. The legal entity form of the BUMDesma-LKD business unit can be established in the form of a cooperative or limited liability company. The establishment of an LKM by a cooperative legal entity turns out to have legal consequences on several aspects of the LKM cooperative, namely the business activity aspect, capital aspect, institutional aspect, and supervision aspect. These legal consequences arise due to differences in regulations between Cooperatives and MFIs, where Cooperative regulations are based on Law Number 25 of 1992 concerning Cooperatives, while MFIs are based on Law Number 1 of 2013 concerning Microfinance Institutions.