The Indonesian government has initiated plans for a deposit insurance scheme for cooperatives in the country.
The country’s ministry of cooperatives has proposed the establishment of a dedicated deposit insurance agency (LPS) to protect customers' funds held in cooperatives. The proposal is one of the ministry’s major inputs for the cooperatives bill, which has been submitted to the house of representatives.
Cooperatives in Indonesia play a significant role in the country's economy and social development, with a focus on community empowerment and economic improvement. There are 212,135 cooperatives, with 37,783,160 members and 574,451 employees, according to the International Cooperative Alliance (ICA). Out of these, 148,220 are active and 63,915 are inactive.