JAKARTA, kabarbisnis.com: The Financial Services Authority (OJK) continues to prepare oversight of microfinance institutions (LKMs) and will form an LKM guarantor institution. It is planned that by 2015 there will be 10 regional credit guarantee companies (Jamkrida) to guarantee LKMs.
Firdaus Djaelani, Executive Head of the Non-Bank Financial Industry Supervisory Department of OJK, said that the function of the LKM guarantor institution is to guarantee the public funds deposited in LKMs. The guarantee for these public funds will be limited to a maximum of Rp 10 million. "If there is a guarantor institution, people will not be afraid to deposit their money in LKMs," he explained in Jakarta last weekend.
Regarding the establishment of the LKM guarantor institution, he said that OJK will cooperate with regional governments. Currently, there are nine Jamkrida operating in nine provinces in Indonesia. These Jamkrida provide guarantees by issuing guarantee certificates so that debtors are declared bankable and can obtain loans from banks.
In addition to cooperating in establishing the guarantor institution, OJK will coordinate with regional governments to identify unregistered financing institutions. Under the OJK Regulation on LKMs, all institutions engaged in deposit and loan activities must be in the form of LKMs. "We will work together with regional governments to identify unregistered LKMs," said Firdaus.
Regarding the establishment of LKMs, OJK requires that at least 60% of an LKM's ownership is held by regional governments. In this context, regional governments include the smallest administrative units such as villages and sub-districts, up to provinces.
(SOURCE: http://www.kabarbisnis.com)