Message From KemenkopUKM To The Authorities: Strict Action On Illegal Loans Under The Guise Of Muhammadiyah Cooperatives

JAKARTA - The Ministry of Cooperatives and SMEs asks the authorities to take firm action against those who practice illegal online lending (pinjol) under the guise of or on behalf of the Muhammadiyah cooperative.

Previously, in recent times online loan offers have circulated through social media accounts and instant messages on behalf of KSPS Syariah Muhammadiyah. This caused unrest in the community, especially the Muhammadiyah Association.

Deputy for Cooperatives at the Ministry of Cooperatives and SMEs, Ahmad Zabadi, said the cooperative practice was illegal because it did not implement cooperative regulations and Muhammadiyah Persyarikatan internal regulations correctly.

"KemenkopUKM asks law enforcement officials to immediately take firm action against illegal practices in the name of cooperatives, especially KSPS Syariah Muhammadiyah, because it is feared that it can damage the image of cooperatives and damage the big name of Muhammadiyah as the largest Islamic organization in the country," said Zabadi in a statement received by VOI. , quoted Thursday 21 April.

Zabadi explained that the cooperative had used the name of the Muhammadiyah organization for personal gain. In addition, they also have the potential to harm the image of Muhammadiyah and the development of sharia cooperatives that have existed within the Muhammadiyah organization so far.

"Especially at this time Persyarikatan is very concerned in developing the third pillar (of the economy) of Muhammadiyah, lest before the 48th Congress in Solo, Central Java, it will be injured by the practice of illegal cooperatives in the name of Muhammadiyah," said Zabadi.

Previously, the Ministry of Cooperatives and SMEs had coordinated with the Muhammadiyah Central Leadership and Entrepreneurship Council (MEK-PPM) and the Baitut Tamwil Muhammadiyah parent company (BTM). Through this coordination, KemenkopUKM conveyed the need for local Muhammadiyah Regional Leaders (PDM) to report the illegal practice of Muhammadiyah Sharia KSPS to the authorities in Kediri, East Java.

This is because the address of the KSPS is in Kediri, East Java. In addition, the Kemenkop UKM hopes that after taking legal action, the PDM together with the Muhammadiyah Regional Leadership (PWM) of East Java can inform the public through the internal media network owned by the Association.

Zabadi said Muhammadiyah had been the government's strategic partner in developing sharia cooperatives and Micro, Small and Medium Enterprises (MSMEs). Through the Baitut Tamwil Muhammadiyah (BTM)-based sharia cooperative, the government feels helped by the presence of BTM in various Persyarikatan communities in the country.

Moreover, with the emergence of Circular Number 004/B/G/2017 from MEK-PPM, it has encouraged the birth of the Muhammadiyah Microfinance Movement (GMM) to develop one Muhammadiyah Regional Leader (PDM), one Baitut Tamwil Muhammadiyah (BTM) in the entire Persyarikatan network.

"This is very clear how big the commitment of Muhammadiyah in the cooperative movement and community economic development," said Zabadi.