OJK Affirms Red And White Village Cooperatives Will Not Automatically Enter His Parties' Supervision

JAKARTA - The Financial Services Authority (OJK) confirms that the Red and White Village Cooperative is not automatically under the supervision of its party, unless it carries out activities in the financial services sector or open systems (open loops).

Chief Executive of the Supervision of Financing Institutions, Venture Capital Companies, Micro Financial Institutions, and Other Financial Services Institutions OJK Agusman conveyed that under Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK), it is regulated that Cooperatives carrying out activities in the financial services sector meet several criteria.

Agusman explained that the first kiteria, namely raising funds from parties other than the members of the Cooperative concerned, collected funds from members of other Cooperatives.

Furthermore, channeling loans to parties other than members of the Cooperative concerned and/or channeling loans to members of other Cooperatives.

Then, receiving funding sources from banks and/or other financial institutions exceeds the maximum limit set by the minister who organizes government affairs in the cooperative sector.

Next, carry out financial services outside of savings and loan businesses, such as banking businesses, insurance businesses, pension program businesses, capital markets, finance institutions businesses, and other business activities stipulated in the law regarding the financial services sector.

"If the Village and Red and White Village Cooperatives do not meet the above criteria, they do not include cooperatives in the financial services sector (open loop) so that they are not regulated and supervised by the OJK," he said in his statement, Thursday, April 17.

Previously, the Government would form a special task force task force tasked daily to accelerate the formation of 80.000 Red and White Village Cooperatives (Kopdes).

Coordinating Minister for Food Zulkifli Hasan said the acceleration was in line with the issuance of Presidential Instruction (Inpres) Number 9 of 2025 concerning the Acceleration of the Establishment of Red and White Village Cooperatives and the Draft Decision of the President of the Red and White Village Cooperatives.

"We will immediately follow up on this at a coordination meeting to speed up the formation, because the title Presidential Instruction is accelerating. I was asked to coordinate and later at the same time there will be a task force that will be on duty daily," said Zulhas at the Office of the Coordinating Ministry for Food, Jakarta, Thursday, April 10.

The man who is familiarly called Zulhas said that the formation of this village cooperative is in line with the ideals of the nation's founders, namely encouraging a mutual cooperation-based economy.

The formation of this cooperative involves cross-ministerial and institutional ministries.

Starting from the Ministry of Cooperatives, Ministry of Villages and Development of Disadvantaged Regions, Ministry of Agriculture, Ministry of Maritime Affairs and Fisheries (KKP), Ministry of Social Affairs, Ministry of Health, Komdigi, Bapanas, Bappenas, ATR/BPN, and BPKP.

Furthermore, Zulhas also said, starting next week the task force will continue to hold coordination meetings with related ministries/agencies, including village officials to accelerate the formation of cooperatives.

"Starting Monday we will continue to be here, the daily task force continues to hold meetings with other ministries, coordinating with villages to immediately form an acceleration of village cooperatives," he said.

Meanwhile, Minister of Cooperatives Budi Arie said that the establishment of this village cooperative is planned to be completed by the end of June 2025 administratively. Later, physical development will be carried out in stages.

"By the end of June, the formation must have been completed. The formation means that the institution, not yet a building or physical one. So the target at the end of June as soon as possible, all 80,000 red and white Kopdes formations have been formed throughout Indonesia," said Budi Arie.