Indonesia proposes insurance agency to protect cooperative deposits
The deputy minister said they aim to modernise the legal framework.
Indonesia’s Ministry of Cooperatives is pushing for the creation of a dedicated deposit insurance agency to safeguard customer funds held in cooperatives, as part of its proposed Cooperatives Bill submitted to the House of Representatives (DPR), reported Antara News.
Deputy Minister Ferry Juliantono said last week that the proposed agency would function similarly to the Indonesia Deposit Insurance Corporation (LPS), which currently protects bank depositors.
Juliantono stressed that the proposed legislation aims to modernise the legal framework governing cooperatives.