Banyuwangi DPRD Commission II to Summon All Cooperatives Under Trade Agency Supervision
BANYUWANGI — The Banyuwangi Regional Legislative Council (DPRD) will soon summon all cooperatives operating under the supervision of the Department of Cooperatives, Micro Enterprises, and Trade (Diskopumdag). The move comes in response to widespread public complaints about lending practices deemed detrimental to borrowers, and to ensure cooperative compliance with the latest regulations.
The Chair of DPRD Banyuwangi's Commission II, Emy Wahyuni Dwi Lestari, said the summons would also serve to evaluate the Online Single Submission (OSS) licensing system implemented by the central government.
"We will summon all cooperatives under Diskopumdag supervision in the near future. This is important, particularly to clarify their operational licences, which are now OSS-based," Emy said after receiving a delegation of residents on Thursday (24 April 2025).
Emy also highlighted new regulations from the relevant ministry concerning cooperatives and microfinance institutions. She said the policy changes needed to be understood collectively so that cooperatives do not misstep in conducting their business activities.
"This summons is also to convey new ministerial regulations. We cannot allow cooperatives to operate outside the rules because they do not understand the applicable regulations," she stressed.
Emy expressed hope that the initiative would improve cooperative transparency and accountability. She added that the DPRD was prepared to provide support in the socialisation of rules and oversight.
"Perhaps there are licensing obstacles — we can share solutions," said the Democratic Party politician.
Emy said she wanted to ensure that operating cooperatives are genuinely legal, supervised, and do not burden the public. "What matters most is the protection of residents as consumers," she concluded.
According to Diskopumdag Banyuwangi data, there are 1,003 registered cooperatives in Banyuwangi, of which 637 remain active. The remainder are inactive and non-operational.
Previously, hundreds of women claiming to be borrowers of microfinance institutions had descended on the Banyuwangi DPRD office to complain about high loan interest rates and debt collection methods they described as inhumane. Several also said they struggled to make repayments, ultimately becoming trapped in a cycle of borrowing from one source to repay another.
The Chair of DPRD Banyuwangi's Commission II, Emy Wahyuni Dwi Lestari, said the summons would also serve to evaluate the Online Single Submission (OSS) licensing system implemented by the central government.
"We will summon all cooperatives under Diskopumdag supervision in the near future. This is important, particularly to clarify their operational licences, which are now OSS-based," Emy said after receiving a delegation of residents on Thursday (24 April 2025).
Emy also highlighted new regulations from the relevant ministry concerning cooperatives and microfinance institutions. She said the policy changes needed to be understood collectively so that cooperatives do not misstep in conducting their business activities.
"This summons is also to convey new ministerial regulations. We cannot allow cooperatives to operate outside the rules because they do not understand the applicable regulations," she stressed.
Emy expressed hope that the initiative would improve cooperative transparency and accountability. She added that the DPRD was prepared to provide support in the socialisation of rules and oversight.
"Perhaps there are licensing obstacles — we can share solutions," said the Democratic Party politician.
Emy said she wanted to ensure that operating cooperatives are genuinely legal, supervised, and do not burden the public. "What matters most is the protection of residents as consumers," she concluded.
According to Diskopumdag Banyuwangi data, there are 1,003 registered cooperatives in Banyuwangi, of which 637 remain active. The remainder are inactive and non-operational.
Previously, hundreds of women claiming to be borrowers of microfinance institutions had descended on the Banyuwangi DPRD office to complain about high loan interest rates and debt collection methods they described as inhumane. Several also said they struggled to make repayments, ultimately becoming trapped in a cycle of borrowing from one source to repay another.