Digital Solution to Curb Bad Debt Risk in Cooperatives
Efforts to digitalise the cooperative sector to strengthen financing governance and curb problematic credit continue. The integrated risk monitoring and mitigation system, PRUVIU, offers technology-based solutions to help cooperatives improve the quality of financing management. The solution was introduced at the National Working Meeting (Rakernas) of Inkopontren on Thursday (21 May).
PRUVIU’s deployment focuses on strengthening risk-management systems, particularly for KJKS and savings-and-loans cooperatives.
Maulana Irfan Sufa, Chief Executive of PT Pruden Visi Utama (PRUVIU), said the technology developed by the company is designed to deliver more efficient financial services through automation and the use of artificial intelligence (AI). ‘For PRUVIU, KJKS and cooperatives are not merely customers, but strategic partners that grow and develop together. We want cooperatives to enjoy banking-level services with lower costs and simpler operations,’ Maulana said.
He added that the system allows data on financing to be integrated to assist loan eligibility analyses more accurately. Moreover, the automatic reporting features are expected to simplify the day-to-day operations of cooperatives. PRUVIU claims advantages over other services, ranging from lower costs via a collective scheme, ease of operation, and automation that supports compliance for institutions.
‘There are many solutions indeed, but ones specifically for cooperatives are not yet available. This PRUVIU is primarily aimed at meeting the needs of savings-and-loans cooperatives,’ Maulana said.
The issue of loan defaults remains a major challenge for savings-and-loans cooperatives in Indonesia. Factors such as weak financing analysis, debtors’ financial problems, suboptimal risk management, and moral hazard contribute to the high risk of non-performing loans. Generally, cooperative NPLs are considered healthy if they are below 5%. An NPL rate above this threshold necessitates evaluation and strengthening of risk-management systems. PRUVIU notes that its system has ISO 27001 certification to ensure data security in line with international standards and applicable data protection rules.
Cooperatives also need to prepare product quality, production capacity, quality standards, and professional governance to compete in export markets.
Minister of Cooperatives (Menkop) Ferry Juliantono emphasised the importance of cross-sector collaboration to accelerate rural economic independence. Deputy Minister of Cooperatives Farida Farichah urged Koperasi Agro Mulyo Lestari in Lampung Timur to become a pillar of the economy through digitalisation and LPDB 3 per cent financing. Over its three-year journey, Koperasi Kana has been building a platform rooted in mutual cooperation, collective effort, and member trust. President Prabowo Subianto outlined the government’s broad plan to strengthen the economy of the people through the large‑scale development of cooperatives.