Kemenkop UKM Affirms KSP Needs To Have A Supervisory Institution, Help Maintain Liquidity

Secretary of the Deputy for Cooperatives of the Ministry of Cooperatives and SMEs, Devi Rimayanti (right). (Photo: Doc. Kemenkop UKM)

JAKARTA - The Ministry of Cooperatives and SMEs (Kemenkop UKM) emphasized the importance of the existence of a protection agency or APEX which plays a role in maintaining cooperative liquidity, especially for Savings and Loans Cooperatives (KSP).

"The right, APEX has a role not much different from other financial institutions under the supervision of the Financial Services Authority (OJK). KSP requires APEX, when KSP is faced with a situation of scarcity of liquidity or lack of funds," said Deputy Secretary of Cooperatives of the Ministry of Cooperatives. SMEs Devi Rimayanti in a written statement, quoted Friday, December 15.

Devi said that the development of infrastructure and institutional ecosystems supporting KSP until the end of 2020 did not yet have institutional support, such as APEX Institutions, Loan Bureau Institutions, Savings Insurance Institutions for Cooperative Members, Cooperative Improvement Institutions, and so on.

According to him, the government only provides KUMKM Revolving Fund Management Institutions (LPDB). In fact, the need for KSP for supporting institutional infrastructure is not much different from other financial institutions under the supervision of the OJK.

Not only that, Devi said that APEX functions in various literacys actually function double, not only financial assistance, but also advocacy functions, capacity functions, literacy and education functions, to liquidity functions.

"KSP as a formal institution that has a business in the financial sector essentially has the same potential risk as faced by other financial institutions, such as banks," said Devi.

He assessed that the infrastructure and supporting institutions owned make the banking industry currently quite mature. However, KSP as one of the business actors in the financial sector does not yet have an adequate ecosystem.

Furthermore, said Devi, one form of infrastructure that will help KSP to be stronger and more independent is the existence of APEX KSP which functions dimensionally by meeting the requirements of necessity and adequacy.

"The requirement means a condition that needs to be available so that APEX KSP can run and carry out its functions," he said.

Meanwhile, Head of the Indonesian Cooperative Study Center (Ikopin University) Sugiyanto hopes that APEX's presence can actively help KSP who experience a miss match liquidity in financial management.

Sugiyanto said that in the discussion of the Cooperative Bill, it is hoped that it will be able to provide creative and innovating opportunities for cooperatives to grow and develop, but cooperatives continue to carry out their identities as rules of the game in the cooperative business.

"Mampu prioritizes the role and function of cooperatives in the national economy and becomes a momentum to socialize, revitalize, and reorganize cooperative institutions," he said.