MORATORY OF BUSINESS LICENSING, SAVE COOPERATIVE LOANS (KSP)

The Ministry of Cooperatives has conducted a Moratorium on Granting Savings and Loans Business Licenses through Circular Letter Number 26 of 2020 concerning the Moratorium on Cooperative Savings and Loans for Cooperatives which was signed by the Secretary of the Ministry of Cooperatives and SMEs. This Moratorium Policy can be interpreted from several perspectives. First from the point of view of the Government and the second from the point of view of business actors (Savings and Loans Cooperatives and Savings and Loans Unit).

 

Viewed from the Government's perspective, this policy is an unpopular step where the current government concern is to make it easier to set up a business and facilitate the business licensing process. Indonesia's position in ease of doing business (Ease On Doing Business) in 2019 is ranked 73. While some Asean countries such as Vietnam and Thailand are ranked 69 and 27. The position of Indonesia's neighboring countries, namely Singapore, ranks 2 (two) in ease of doing business. In an effort to improve Indonesia's position, the implementation of Government Regulation No. 24 of 2018 concerning Electronically Integrated Business Licensing Services is encouraged to be maximally implemented. With the enactment of this PP which is commonly referred to as PP OSS, all types of licensing are submitted electronically through the OSS page including the filing of a Savings and Loan License along with other permits, namely Branch Office Permits, Sub-Branch Office Permits and Cash Office Permits.

In the implementation of this OSS service specifically Savings and Loans, still encountered various problems relating to the technical and understanding of members / management / supervisors of Cooperatives and cooperative development in the area. This can occur because of the lack of socialization carried out by the government both the Ministry of Cooperatives and SMEs as well as by BKPM as the OSS system provider.

 

In addition to technical problems, the condition of Savings and Loans services, especially those carried out by Savings and Loans Cooperatives, apparently still encountered a variety of problems as is rife lately. Some of the problems that occur are due to the lack of public understanding of the services provided by the Savings and Loan Cooperative and the Savings and Loan Unit, lack of government supervision and cooperative legislation that cannot reach unlawful acts carried out by individuals against cooperatives. UU no. 25 of 1992 concerning Cooperatives that have been aged 28 years, the fact cannot be applied to criminal acts related to cooperatives. This has led to the application of laws against cooperative crime using different approaches such as using the Criminal Code, Banking Law, Money Laundering (TPPU) and other regulations

 

The problems faced by the Savings and Loan Cooperative are always recurring and as if there is no complete resolution of several cases that have occurred so far. Communities who are members or customers of savings and loan cooperatives are always victims of cooperatives and cooperatives cannot fulfill their obligations to members or customers of the cooperative concerned. But on the other hand, the community seemed to not care and was still interested in the lure of high interest offered by the Savings and Loan Cooperative. Even though Cooperatives, especially Savings and Loans Cooperatives, in carrying out their business activities, must comply with statutory regulations. A single business application by a Savings and Credit Cooperative must be implemented.

In terms of supervision, the community compares the supervision of banks and savings and credit cooperatives. Based on data from the Ministry of Cooperatives as of December 31, 2019, the number of Savings and Loan Cooperatives was 16,435 Units. Compare with the total number of cooperatives totaling 123,048 units or as much as 13.36%. But when added to the Non KSP Cooperative that has a Savings and Loan Unit as many as 57,263 units, then the total cooperatives that run financial services businesses (KSP and USP) are as many as 73,698 Units. The amount is very large. Especially to conduct surveillance. Banks have the Financial Services Authority (OJK) to supervise existing banks. Whereas cooperatives that run savings and loan businesses, to date, do not have the authority to oversee their business activities. Supervision is only carried out through the internal cooperative itself (through the Annual Member Meeting forum and the supervisory organ of the cooperative) and the Government (supervision conducted by the Deputy for Supervision, Kemenkop).

 

In addition, the condition of the covid-19 pandemic, especially in Indonesia, has had a tremendous impact on almost all walks of life, especially for businesses. Included in this is the Cooperative Savings and Loans affected because the economic condition of the members has drastically decreased so as to affect the ability of members to save and even to repay their loans. This condition causes many KSPs to experience liquidity problems and expect stimulus assistance from the Government to maintain business continuity. Difficulties in nature experienced by cooperatives occur because it is caused by the decrease in the ability of members to carry out activities but can also occur because of fraud or abuse that has been done in cooperatives, causing cooperatives to fail to pay to fulfill obligations to their members.

 

 

The condition as mentioned earlier, is an appropriate argument for conducting a Moratorium on the Granting of Cooperative Savings and Loans Permit. That in accordance with statutory provisions, the Ministry of Cooperatives and SMEs has duties and functions in preparing policy formulation, coordinating and synchronizing the implementation of policies, as well as monitoring, analysis, evaluation and reporting in the field of savings and loan business licenses and opening of cooperative branch offices. The moratorium period specified for 3 (three) months only applies to licensing for cooperative savings and loans businesses with cross-province membership areas as well as operational licenses (branch offices, sub-branches and cash offices). During this Moratorium period, the Ministry of Cooperatives will conduct a review of several laws and regulations governing savings and loan business activities and savings and loan licenses and Cooperative Supervision, namely:

1. Minister of Cooperatives and SME Regulation No. 15 of 2015 concerning Savings and Loans Enterprises by Cooperative
2. Minister of Cooperatives and SME Regulation No. 2 of 2017 concerning Amendments to the Regulation of the Minister of Cooperatives and SMEs Number. 15 / PER / M.KUKM / IX / 2015 concerning Cooperative Savings and Loans;
3. Minister of Cooperatives and SME Regulation No. 11 of 2017 concerning Implementation of Savings and Loan and Sharia Financing Business Activities by Cooperatives;
4. Minister of Cooperatives and SME Regulation No. 9 of 2018 concerning Implementation and Development of Cooperatives;
5. Minister of Cooperatives and SME Regulation No. 11 of 2018 concerning Permit for Usha Savings and Loans;
6. Minister of Cooperatives and SME Regulation No. 17 of 2015 concerning Cooperative supervision;
7. Minister of Cooperatives Regulation No. 06 of 2017 concerning the Application of the Principle of Recognizing Service Users for Cooperatives Engaging in Savings and Loan Businesses

 

The application for a Savings and Loans permit which was filed before May 29, 2020 and has fulfilled the commitments specified, the process continues and the Savings and Loan Business Permit is issued.

 

From the point of view of business actors, there are still many cooperatives that carry out Savings and Loans Businesses that are not in accordance with the basic principles and values ​​of cooperatives as well as the provisions of the legislation, causing anxiety and damage to the image of the cooperative. In addition, the current condition of the Covid-19 pandemic has caused economic conditions that are less conducive to cooperative savings and loans, including

 

1. decrease in financial liquidity of cooperative savings and loan businesses;

2. capital reduction and the ability to expand a Savings and Loan cooperative;

3.Difficulties in carrying out internal consolidation and service to members.

 

Based on some of the considerations above, the moratorium on the granting of savings and loan permits, it is hoped that the cooperative membership of regency / city and provincial areas to prioritize consolidating their business and institutional cooperatives is compared to expand the membership area to the national level. Likewise with the opening of branch offices can be postponed to further maximize services in existing branches. It is hoped that the Savings and Loan Cooperative can strengthen the institution of Savings and Loan Cooperatives by re-registering the membership of the cooperative by sorting out members and prospective members to be encouraged to become members of the cooperative. Then the service through the branch office but does not have a permit, dpaat immediately submit licensing branches. Likewise, the savings and loan cooperative business plan is returned to the cooperative principle, which is to empower members through the priority of financing business members compared to investing outside the cooperative that is vulnerable to impairment of assets or losses due to wrong investment.