Online loans

Government to revoke licenses for co-ops operating illegal online lending

Jakarta (ANTARA) – The Ministry of Co-operatives and Small and Medium Enterprises has decided to give a boost to savings and credit co-operatives that operate illegal online lending programs by revoking their authorizations.

“Regarding the legality of business entities, we will coordinate with the Ministry of Law and Human Rights to revoke their business licenses, making cooperatives illegal, as the government has dissolved the entities,” Ahmad said, deputy of the Ministry of Cooperatives. Zabadi said Wednesday in Jakarta.

The ministry must be proactive in prosecuting illegal online lending companies that abuse the license of savings and credit unions, as their actions can tarnish the image of cooperatives in the public eye, he said. .

Zabadi confirmed that the ministry has contacted the Association of Indonesian Notaries to discuss the issue of some notary public helping illegal online lenders to gain legal status by certifying the union’s statutes as cooperatives.

The authority had been informed that a notary had administered nearly 40 articles of incorporation used for these purposes from 2020 to 2021, he said.

“We have delivered our letter to the Association of Indonesian Notaries regarding the identity of the Notary Public, and we hope that the organization will take firm action against the suspected Notary Public by reviewing the legality of the statutes of the cooperatives that have become illegal. online loan syndicates that they had certified, ”Zabadi said.

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He confirmed that the ministry had also engaged with the Ministry of Communications and Informatics to review electronic system permits granted to some savings and loan cooperatives.

“We suggested to the ministry to adjust the operating criteria of the private electronic permit application system”, noted the deputy.

The MP suggested that the ministry should require the presentation of proof of savings and loan permits for cooperatives applying for a license to operate a private electronic system.

Regulation No. 09 of 2018 of the Minister of Cooperatives and Medium and Small Enterprises had stipulated that savings and credit cooperatives had to apply for savings and credit activity permits before being authorized to operate, a he added.

Zabadi expressed optimism that the additional requirement would allow the ministry to identify savings and loan cooperatives that had applied for savings and loan activity permits and ensure that all cooperatives having obtained permits are legal.

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