TEMPO.CO, Jakarta - The government has been demanded to set a law that regulates standard interest rates on savings and loans given to savings and loans cooperatives in Indonesia.
Co-operative Research Institute (CRI) Director Irsyad Muchtar said Monday that absence of standards in establishing interest rates by savings and loans cooperatives could cause serious affect.
“Without having standards for savings and loans cooperative interest rates could be dangerous, including unhealthy rivalry among cooperatives,” said Irsyad. Those savings and loans cooperatives tend to compete in offering high interest rates on deposits.
It could result in payment failures and losses to the entire cooperative members and society.
This phenomenon has frequently occurred in the cooperative world but failed to get serious attention from the government.
In the future, Irsyad expects that the matter would draw serious attention from the government as an attempt to improve cooperatives in the nation.