Cooperative Draft Bill to Establish a Deposit Insurance Agency

The House of Representatives of the Republic of Indonesia (“DPR RI”) is currently formulating Draft Bill on Cooperative (“Draft Bill”). Nasim Khan, a member of Commission VI of the DPR RI, proposed the establishment of a deposit insurance agency on par with the banking industry.

“We also want transparency in budget management. This includes an evaluation of the Indonesian Cooperative Council (Dekopin), whose accountability has long been in question,” said Nasim.

Several crucial points considered important in this regulation include the restructuring of the institutional framework from the primary to the parent level, in order to build a more competitive economy of scale. This also includes the classic issue of access to capital, which must be regulated more clearly so that cooperatives do not continue to operate under funding constraints.