LPDB Develops AI-Based Credit Scoring, Aiming to Assess Cooperative Financing Applications in Minutes

YOGYAKARTA — The Revolving Fund Management Institution for Cooperatives (LPDB) is developing innovative credit-scoring technology based on artificial intelligence (AI) to accelerate financing for cooperatives. The technology is targeted for implementation in 2027, enabling assessments of financing eligibility—currently conducted manually—to be completed more quickly and accurately.

LPDB President Director Krisdianto Soedarmono said the system was part of efforts to improve service quality and extend financing to more cooperatives. The integrated data-based technology is expected to shorten assessment times, reduce subjectivity and help management make more comprehensive decisions.

“We will use technology to carry out credit scoring so that the process can be accelerated and the human element of subjectivity removed. The aim is to provide better service than before,” Krisdianto said in his opening remarks at an LPDB media gathering in Yogyakarta on Monday (12 October 2026).

Krisdianto said the system could reduce financing eligibility assessments, which previously took a relatively long time, to just minutes. This would help cut the queue of financing applications and give more cooperatives the opportunity to access funding.

However, he stressed that the technology would need to be tested and refined, particularly in setting assessment criteria and measuring financing risks. LPDB’s revolving funds come from the state budget (APBN), so their disbursement must continue to prioritise prudence and accountability.

Krisdianto acknowledged that financing cooperatives was becoming more challenging amid economic volatility. Cooperatives are also facing economic pressures, while LPDB’s disbursement is now specifically channelled through cooperatives. In previous years, financing could also be provided directly to small and medium-sized enterprises (SMEs) or through banks.

The technology is therefore expected to help LPDB strike a balance between selective fund disbursement and easier access to financing.

“This is no small challenge amid a challenging economic situation and the pressure on cooperatives from economic volatility. LPDB must remain selective and prudent while still serving cooperatives,” he said.