Repayment of Funds to Members of Problematic and Stagnant Cooperatives Still Far From Total Obligations

Members of eight troubled savings and loan cooperatives (KSPs) remain anxious. This is because the payment of funds rightfully owed to them is stalled.

According to *CNN Indonesia*, the eight problematic cooperatives are KSP Sejahtera; KSP Indosurya; KSP Pracico Inti Sejahtera; KSPPS Pracico Inti Utama; KSP Intidana; Koperasi Jasa Wahana Berkah Sentosa; KSP LiMa Garuda; and KSP Timur Pratama Indonesia.

Minister of Cooperatives and Small and Medium Enterprises (Menkop UKM) Teten Masduki stated that the total liabilities of these problematic cooperatives amount to Rp26 trillion.

However, only Rp3.4 trillion has been returned to their members. This means there is still Rp22.6 trillion in outstanding debt that needs to be paid.

Teten explained that the stalled return of member funds is due to obstacles in asset sales, cooperative administration, and the ongoing criminal proceedings against these cooperatives. This also makes asset liquidation difficult.

All eight cooperative members have pursued the Suspension of Debt Payment Obligations (PKPU) process. However, Teten stated that the PKPU decision has not been effective.

(See also: Utang KSP Sejahtera Bersama Tembus Rp8,87 Triliun, Berapa Jumlah Krediturnya?)

"Many of these cooperatives' assets are no longer owned by the cooperatives. There has been embezzlement by their management, used for personal gain, invested in their own companies or by their management. Because this is a legal matter, this target is being coordinated with the Coordinating Minister for Political, Legal, and Security Affairs," he told *Detik.com*, as published by *CNN Indonesia*, Thursday (June 8, 2023).

Teten explained that his ministry has developed short, medium, and long-term schemes to address these problematic cooperatives.

The short-term plan involves the formation of a task force and providing guidance and monitoring. The medium-term plan involves implementing the Constitutional Court's circular regarding bankruptcy filings against cooperatives. This circular can only be executed by the Ministry of Cooperatives and SMEs.

Finally, in the long term, Teten mentioned that his ministry is preparing a cooperative savings and loan business ecosystem. Teten also hinted at the role of external supervisors in addition to internal supervisors.

(See also: Koperasi Simpan Pinjam Indonesia Terpusat di Jawa Timur)