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OJK and Kemenkop to supervise savings and loans cooperative

15 December 2022 13:29

JAKARTA – The Financial Services Authority (OJK) and the Ministry of Cooperatives and SMEs (lit. Kementerian Koperasi dan UKM/Kemenkop) will share the responsibility of Savings and Loans Cooperatives (lit. Koperasi Simpan Pinjam/KSP) supervision, according to Financial System Development and Reinforcement (P2SK) Bill.

Budi Mustopo, Head of Communication and Information Technology (IT) Bureau of the Kemenkop, confirmed that OJK will only monitor KSP that offers financial services for non-members, also known as an open loop system.

“The cooperatives that we (OJK and Kemenkop) supervise are the ones that do not offer services for non-members (closed loop). If Kemenkop database detected any KSP that offers services with an open loop system, the monitoring responsibility will fall to OJK,” Mustopo explained.

According to Mustopo, the authority will draft the regulation regarding minimum assets and capital of closed-loop and open-loop KSP. “It will be further regulated in the Ministry of Cooperatives Regulations regarding Licenses of Savings and Loans Cooperatives,” he said.

On another occasion, Putri Komarudin, a member of Commission XI of House of Representatives of Indonesia (DPR RI), claimed that the government and DPR have agreed to control and monitor KSP that is engaged in the financial service sector, as mentioned in P2SK Bill. “Not all KSP will be supervised by OJK. KSP that extend its services to non-members will be supervised in the same way other institutions in the financial service industry,” she explained.

According to Komarudin, said bill will define the scope of services of KSPs. Kemenkop, supported by the regional government, will identify KSP that will fall under OJK’s jurisdiction after evaluating its performance for two years.

One of KSP owners, not wanting to disclose their name, appreciates the P2SK Bill. KSP will conform to the new law that will take effect in 2025, after being ratified by DPR. “It is to secure our members’ funds,” they claimed. (LK/ZH)

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