LPDB Koperasi Strengthens Sharia Financing Governance

The Revolving Fund Management Agency for Cooperatives (LPDB) is strengthening the governance of its sharia-based revolving fund distribution through the appointment of supervisory consultants to ensure financing adheres to Islamic principles. LPDB Managing Director Krisdianto stated that strengthening sharia compliance is part of the institution’s commitment to improving governance quality while building cooperative partners’ trust in sharia financing. ‘Strengthening sharia compliance is not only a regulatory obligation, but also LPDB’s commitment to building trust among cooperative partners, improving service quality, and ensuring every financing provides optimal benefits for cooperative economic development,’ Krisdianto said in a press release in Jakarta on Tuesday. The contract signing for the sharia financing supervisory consultants took place at the LPDB Cooperative Office in Jakarta on Friday (10/7). Krisdianto noted that as a Public Service Agency under the Ministry of Cooperatives managing state budget funds, LPDB has a responsibility to ensure all revolving fund distribution, including through sharia schemes, is carried out professionally, accountably, and in accordance with sharia principles. He said the increasingly dynamic development of the sharia financial industry also demands more comprehensive analytical capabilities so that every financing decision remains aligned with sharia principles and meets legal and governance aspects. Through this strengthened supervisory function, the consultants will support LPDB in sharia compliance analysis, advocacy on legal and regulatory issues, refinement of internal policies, strengthening risk management, and enhancing human resource capacity in the field of sharia economics and finance. Krisdianto emphasised that the success of sharia financing is not only measured by the amount of revolving funds disbursed, but also by the quality of governance, compliance with sharia principles, and the level of trust among stakeholders. ‘We want to ensure that every sharia financing process at LPDB has a strong legal foundation, meets sharia principles, and provides certainty and security for our partner cooperatives,’ he said. According to LPDB’s annual report, throughout January to December 2025 the institution disbursed approximately Rp1.74 trillion in revolving funds, consisting of Rp1.02 trillion (58.58 percent) in conventional financing and Rp720.53 billion (41.42 percent) in sharia financing. In 2026, LPDB is targeting revolving fund distribution of Rp2.1 trillion, with a focus of 85 percent on the real sector and 15 percent on the savings and loan sector.