Jakarta, CNN IndJakarta, CNN Indonesia -- The Financial Services Authority (OJK) supports the Kemendes PDTT program to develop with the Village Financial Institution (LKD) which is a Micro Finance Institution (LKM) business unit of the Joint Village-Owned Enterprise (BUMD Bersama).
The establishment of the LKD is the result of the transformation of the former Activity Management Unit (UPK) of the Mandiri Desa National Community Empowerment Program (PNPM), which is in line with OJK's commitment to developing the village economy.
Chairman of the OJK Board of Commissioners Wimboh Santoso and PDTT Village Minister Abdul Halim Iskandar and East Java Governor Khofifah Indar Parawansa met at the Grahadi Building, Surabaya, Wednesday to inaugurate the LKD Establishment Program.
In addition, there was also the signing of the Joint Working Agreement between OJK and the Ministry of Villages on Improving Financial Literacy and Inclusion, Development of Village Owned Enterprises / Joint Village Owned Enterprises and Development of MFIs in the Context of Empowering Rural, Rural, Disadvantaged Areas, and Transmigration Areas.
The signing of the PKB was carried out by the Deputy Commissioner for Supervision of Bank IV OJK Ahmad Soekro Tratmono and the Acting Secretary General of the Ministry of Villages PDDT Taufik Madjid.
The signing of this PKB is a continuation of the Memorandum of Understanding between OJK and the Kemendesa PDTT which was issued last July.
Through this PKB, the two institutions will optimize the roles and synergies of BUM Desa/BUM Desa Bersama and MFIs in order to increase economic growth and increase financial inclusion in Village, Rural, Disadvantaged Regions, and Transmigration Areas.
In this initial stage in East Java, 147 LKDs will be established as a pilot project that will manage a revolving fund of around Rp 600 billion which has been managed by the Bumdesma savings and loan business unit.
This LKD operation will adopt the Micro Waqf Bank scheme which does not accept public deposits, but uses a group basis. In addition, it also does not charge interest except for administrative fees and gets assistance from the OJK.
Building from the Countryside
Chairman of the OJK Board of Commissioners, Wimboh Santoso, said that the existence of this LKD is in line with the programs of the OJK, the Ministry of Villages and local governments in realizing the goal of developing the country through rural areas.
"This LKD is our form of building the country through villages and this is part of the OJK's goal to contribute to the national economy," said Wimboh in his statement, Wednesday (21/10).
Meanwhile, Mendes Halim Iskandar hopes that the establishment of this LKD can realize the dream of building a large financial institution that grows and is sourced and beneficial to the village community.
According to him, the existence of LKD will restore the former UPK PNPM Mandiri Desa program according to the original goal of reducing rural poverty and will be expanded to all villages in Indonesia.
Meanwhile, the Governor of East Java, Khofifah, expressed his appreciation to OJK and the Ministry of Villages for moving quickly to realize the program. He hopes that the program can move the economy, especially in rural areas and rise from the impact of Covid 19.
(hope/hope)
