TAF PUBLISHING

Small and Medium Enterprises and young entrepreneurial business ventures seek capital support from financial institutions for their growth and survival. Especially in post-covid-19 times, it becomes vital for the revival of affected business areas. Thus current research aims to shed light on the scarcely researched phenomenon to contribute to the literature. A cooperative has such a serious nature in the Indonesian national economic system. Cooperatives in Law No. 25 of 1992 are said to be the "principal factor" of the nation's economy. The understanding of the backbone is essentially contained in Article 33 of the Constitution of the Republic of Indonesia year 1945 as the state constitution. In advancing the national economy, cooperatives form business units that focus on certain fields, one of which is the saving and loan cooperative. Saving and loan cooperative is alternative financing for Indonesian people, especially businesses with little capital. The mechanism is possible through an instrument of a loan agreement and by providing Guarantees in the form of a Fiduciary. However, there will be problems if the cooperative save borrow is declared bankrupt against the guarantee given by members of the cooperative in the form of micro-businesses. This study uses the normative approach to examine secondary data in existing legal fields as a literature review approach. The final results from the content analysis show that the legal status of fiduciary guarantees will still go into the bankruptcy model, whose management is carried out by the curator. However, the perpetrator still gets legal protection because the guarantee he gives is followed by the basic agreement, namely a loan agreement, so the curator can not sell the fiduciary guarantee before the basic agreement expires. These findings indicated a legislative gap in the cooperative framework and highlighted the need to grab the attention of policy institutions for better business outcomes. The study brings several key insights for policymakers, business scholars, business law experts, and entrepreneurs.