Implementation of Notary Prudence Principle in the Cooperative’s Deed of Establishment

Abstract

Notary has important role, especially in civil law by authority to make authentic deeds and other authorities. The notary need to be cautious and has the right or obligation to explore and extract information so the deed is perfect.  In Cooperative establishment, authentic deed made by a notary, has power as a perfect evidence. However, when the authentic deed is made without prudence, chance that legal problem will arise in the future. We want to know, how is the prudence principle implemented in the cooperative’s deed of establishment in Indonesia and what is the legal consequences faced by notary when violating the prudence principle in making cooperative’s deed of establishment. We conducted a qualitative research through literature which resuted Indonesian law requires a notary to apply the prudence principle in carrying out position, such as identify the cooperative founder, checking object of the deed, giving a grace period in the working out, conduct counseling and coaching to prospective members before the cooperative deed is made. When a Notary is proven to have committed violation in carrying out duties and positions, they may be subject to criminal, civil, and administrative sanctions. The notary may be sued for reimbursement, compensation and interest, when neglegance,  which lead the deed they made only has the power of proof or as a private deed, cancelation, or having legal defect so the deed loses its authenticity and is detrimental to the parties concerned.