The implementation of OJK in Cooperative Institution has been stated in Picu’s Magazine no. 17 year 4, the title was “People were still not known about financial literacy”. The implementation of OJK has been started since January 1st 2014, it is expected that the blueprint could prevent unexpected financial practices that will deceive member. Does the OJK could minimize and prevent the unexpected cooperative in financial institutions?
Based on the Rules no. 21/ 2011 about Financial Service Authority (OJK), OJK is the Indonesian government agency that regulates and supervises the financial services sector, which include commercial banks, insurance companies, reinsurance companies, Consumer of the financial services business actors, and financial institutions. OJK provides safe and soundness financial institutions as the financial services for the people. The government published OJK regulations were to solve the unreliable financial institutions which create problem to the people who did not understand about the new financial institution operation. They were enticed by the giving of highest interest for their account but they did not understand about operational basic in financial institutions. Finally, operational systems of the institutions were temporary conducted although they have lots of members. The unreliable cooperatives did not afford to give higher interest and capital to members need.
The existence of unreliable cooperative makes member no longer trust in cooperative's advantages. That is why, they worried to be a cooperative’s member or being supervisors and directors. People (member) think that their money will not be safe if they put their money in cooperatives.
OJK implementation of cooperative (as the financial institutions) was not only as the regulators and supervisors in the financial services sector, but also it could help people to expand financial access in remote. The Chairman of OJK Board of Commissioner, Muliaman Darmansyah Addad, said that OJK will expand the transformation of branchless banking. Besides that, Financial institutions are expected to be more competitive. OJK was also will give the education about investment so that people not to be trapped by “bodong” investments that have ever been happened in some areas in Indonesia.
Branchless banking is a distribution channel strategy used for delivering financial services without relying on bank branches. While the strategy may complement an existing bank branch network for giving customers a broader range of channels through which they can access financial services, branchless banking can also be used as a separate channel strategy that entirely forgoes bank branches.
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