Cooperatives Will Enter OJK Supervision In The PPSK Bill, Menkop Teten Asks For Special Participation

Coordinating Minister for SMEs Teten Masduki. (Photo: Doc. Antara/Kemenkop UKM)

Minister of Cooperatives and SMEs Teten Masduki proposed that there be special cooperative compartments at the Financial Services Authority (OJK) in the Draft Law on the Development and Strengthening of the Financial Sector (RUU PPSK) to ensure the development of cooperatives according to their basic principles.

This was conveyed by the Coordinating Minister regarding the entry of cooperatives in the OJK supervision system in the PPSK Bill on the occasion of a Working Meeting with the Minister of Finance, the Head of the Investment Coordinating Board (BKPM), and the Minister of Law and Human Rights with Commission XI of the DPR on the agenda of Introducting the Bill on PPSK in the Meeting Room of Commission XI DPR RI, Jakarta, through an official statement quoted by Antara, Friday, November 11.

The integration of savings and loan cooperatives in the entire national financial system, including its supervision, will encourage the health of the cooperative and build public trust in cooperatives. In addition, there is equal treatment or equal treatment between cooperatives and banks if there are problems that can harm its members," he said.

Now, he continued, there are a number of problematic cooperatives that have reached a solution through the Suspension of Debt Payment Obligations (PKPU). However, in practice, the problem has not been resolved.

In fact, if the bank has a problem, the treatment means that are given are clear. Therefore, Teten hopes that the handling given to problematic cooperatives must be more assertive in the PPSK Bill.

His party ensures that it will maintain sustainability according to the identity of the cooperative in providing financing to the community. This is because the existence of cooperatives is still very much needed to provide financing to the community, especially those that are not yet bankable.

In fact, he said, there are 30 million Micro, Small, and Medium Enterprises (MSMEs) that have not been able to access formal financing due to colateral problems.

The presence of cooperatives is still needed, but the government must protect the public from financial business activities. On the other hand, indeed, we must continue to improve the health of cooperatives, so that there are good governance, transparent, accountable," said the Coordinating Minister.

Considering the community's need for cooperatives, Teten proposed special cooperative compartments at the OJK in the PPSK Bill with certain arrangements, so that the basic principles of cooperatives and ease of financing to the community can still be carried out.

"We will propose this special cooperative compartment, because savings and loan cooperatives are different from other financing institutions. The principle of operation is from members for members, member-owned cooperatives as well, therefore providing loans, the cooperative belongs to the members is not as strict as in the bank, and this aspect needs to be emphasized," he said.

If there is a cooperative compartment at the OJK, it will be a middle ground for cooperative actors who generally refuse cooperatives to be treated as tightly as banking.

"The government is committed so that cooperatives can grow big, and there are no difficult restrictions. However, there is still a need for a cooperative institutional ecosystem that is equivalent to banking," said Teten.