Central Java Governor Urges Cooperatives to Combat Online Loans and Loan Sharks

Governor of Central Java, Ahmad Luthfi, has called upon the region's numerous cooperatives to play a more active role in safeguarding the community from the perils of online lending and predatory moneylenders. Speaking at the Regional Working Meeting of the Indonesian Cooperative Council (Dekopinwil) for Central Java in Semarang, Luthfi emphasized the significant potential of these organizations to provide financial stability and alternatives for the populace.

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For example, with the existence of cooperatives, funds can be transferred to the regions; online loans, loan sharks, will be eliminated by our cooperatives. Especially under the control of Dekopinwil, whose officials today are the cooperative champions in the Central Java region.

Central Java boasts a robust cooperative sector, with 19,022 active cooperatives encompassing 6.8 million members and managing assets valued at nearly Rp60 trillion. Governor Luthfi highlighted that these cooperatives should not only empower their members but also extend their reach to assist the wider community. He envisions cooperatives channeling funds into local areas, effectively displacing illegal lenders and offering a legitimate financial lifeline.

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Where Koperasi Merah Putih, 6,271 have been operational. We hope Koperasi Merah Putih can strengthen the village economy. The village is the furthest development destination in our region. With Koperasi Merah Putih, it will provide color for the community in the village.

During the meeting, which was also attended by the Minister of Cooperatives, Ferry Juliantono, Luthfi reported that 8,523 'Koperasi Merah Putih' (Red and White Cooperatives) in Central Java have been legally established, with 6,271 already operational. He expressed his hope that these 'Koperasi Merah Putih' would significantly bolster village economies, describing villages as the "front lines of regional development." The governor urged Dekopinwil Central Java to actively support and empower these cooperatives, ensuring their operational activities generate added value for the cooperative movement as a whole.

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At least the operational activities will have added value for cooperatives in general and Koperasi Merah Putih in particular.