JAKARTA: Indonesia's cooperatives industry, including sharia and conventional cooperatives, is estimated to channel IDR9.5 trillion of financing to micro and small medium enterpise this year.
According to Ministry of Cooperatives, Small and Medium Enterprises, the financing was distributed by more than 71,365 units of saving and loan cooperatives (KSP) and sharia financial service cooperatives (KJKS) in various regions.
KSP and KJKS served more than 6,125,766 entrepreneurs of micro, small and medium enterprises (MSMEs), Financing Deputy at the Ministry of Cooperatives, Small and Medium Enterprises Pariaman Sinaga said.
“The figure is relatively smaller [about 11%] compared to MSMEs’ market share that has reached 52.77 million people, or 99% of the total business entities in Indonesia,” he said yesterday.
Such fact and data show that microfinance institutions such as KSP/KJKS have a great potential to be developed as intermediation institution in real sector, particularly for MSMEs entrepreneurs.
The government is very enthusiastic to develop an economy that increasingly qualified to achieve equitable and fair growth. Therefore, the grassroots should also be given the opportunity to conduct economic activity, which will generate added value to society.
“This is a form of MSMEs empowerment since KSP/KJKS supported national GDP with 56.53% contribution and absorbed 97.30% labors," the minister said.
ironically, with 186,987 units of cooperatives operate in Indonesia, including KSP/KJKS, none of them have reached International Cooperative Alliance (ICA) Global 300 ranking.
Thus, Indonesia needs to create strategies that will promote national KSP/KJKS to reach such elite rank.
There are several KSP/KJKS that have the capability to reach such rank, i.e. KSP Kospin Jasa Pekalongan, KSP Nasari Semarang, KSP Kodanua Jakarta, KSP Credit Union Kalimantan, and Koperasi Kredit Indonesia Jakarta.
ICA monitors several general aspects before composing the global 300 ranking, such as business orientation for its members and society, efficient business management, business network, and extensive customer that is supported by technology and information.
“The cooperatives must also have turnover around US$63 million-US$654 million and assets value between US$18 million to US$460 million,” Pariaman said. (t06/ags)