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Home PUBLIKASI ARTIKEL CUCO - INDONESIA IN THE PAST, NOW AND FUTURE


Statistik Inkopdit

Jlg Anggota perorangan
1.808.328
Jumlah Kopdit/CU 930
data per 31Des 2011.

CUCO - INDONESIA IN THE PAST, NOW AND FUTURE

 

CUCO - INDONESIA

IN THE PAST, NOW AND FUTURE


The Beginning of Credit Union in Indonesia

 

Indonesian Credit Union Movement has begun in Indonesia since 1970, the begins idea is came from WOCCU’s staff namely AA. Bailey and Agustin R. Kang who were visited to Indonesia in 1967 and received directly by a non-governmental organizations in Indonesia, namely Majelis Wali Gereja Indonesia in short MAWI (Indonesian Bishops Council) at socio-economic section. Some Catholic Clergy who were assigned to specific economic and social development for the development of credit union assigned to Rev.Karl Albrecht, SJ, known by the name of Indonesia is the Father Albrecht Karim Arbie, SJ, He is known as the founder of Credit Union in Indonesia. After above name, appear the names as pioneer of the following, such as: Robby Tulus, PM Sitanggang, AG. Lunandi, M. Woeryadi, Ibnoe Soedjono, H. Woeryanto and others whose names can not be called one by one.

 

 

 

At that moment, Rev. Karl Albrecht, SY and friends established the Non-Governmental Organization called CUCO (Credit Union Counseling Office) in 1970, which is an institution to provide consultation to society to develop a Credit Union in all parts of Indonesia. At the beginning these idea was less get a positive response from the Government and even some residents of the Catholic Church did not accept it, because it is still so much trauma to occur co-operatives in Indonesia in the past but Father Albrecht and his colleagues remain running. Father Albrecht only one year to be a Director of CUCO, than at the end of 70’s He is decided to resigned and laying his job to Drs. Robby Tulus to continue the business development of credit union in Indonesia. Starting at the end of 1970, The data of CU is already recorded as many as 9 CU, with number of member 763 persons and total asset as amount of Rp.1.342.570, -

 

During New Sociopolitical Order regime of Government (ORBA) in Indonesia, Credit Union growth is hindered by the Government through Presidential role No. 4 of 1984 which essentially prohibits cooperatives, besides KUD (Cooperative of Village Unit) in the rural village area. So that, there are many Credit Union doing their activity with concealed because of fear being in dispersed by the Government, especially in rural areas. But after ended the ORBA regime and then emerge of Reformation regime, the Presidential Instruction No. 4 / 1984 is deleted and no longer valid, the development of Credit Union started free to gather and carry out education in both urban and rural areas. From that time, credit union’s activists began to nurture the seeds of activities CU throughout Indonesia.

 

In an effort to grow the seeds above of CU, there are many foreign parties to provide support in terms of giving the aid funds for education. They are: Cibemo from Netherland, Mizereor and KAS from Germany, Inter-cooperation from Swiss, and also CCA from Canada. These institutions support the funding for the implementation of education and training so that CU can grow uniformly throughout the territory of Indonesia. And they begun to end their assistance since 1999-2000 and currently CUCO – Indonesia has been finance itself all activities in training & educating activities, and also guiding & monitoring in each working area across Indonesia.

It has been almost 30 years (1970-2000) the credit union movement have just instilling the philosophical and principles of CU and have not yet directly how to manage based on economic feasibility and business. It can be seen at the data of number of primary CU in 1995 reached the highest position (about 1600 primaries) and then slowly the total of  primaries is decreased but number total of savings, members, and assets is increased. See data BOD per period.

 

 

CURRENT CONDITION


Be aware that the Indonesian Credit Union Movement organization system is somewhat different with the Asian Credit Union Movement organization system in generally. With reason that Indonesia is the archipelago country, so that Indonesian credit union movement until now is still maintained three level system. The first track is the primary Credit Union (Kopdit Primer), second level is the Chapter (Puskopdit) in the province or a district, and the third is National Secondary that known as CUCO – Indonesia (Inkopdit). It’s have a good and bad in implementing of three level system, thus affecting development and growth of the Credit Union as a whole.

 

Step by step CUCO-Indonesia trying to manage the business with funds coming from the internal of movement such as; Interlending (SPN), Solidarity dues and Mutual Aid Fund (Daperma). Gradually institution partners from abroad are no longer finance the operational costs, even for education activity is funded internally by CUCO-Indonesia. When Indonesia was hit with a multi-dimensional crisis, particularly the economic crisis since 1998, CUCO-Indonesia consolidated all activities and resources, so it can continue the activities even if slightly disturbed. The incident then becomes the lesson for management of CUCO how to manage the limited amount of funds but can be running and implement the planned activities.

 

Before ACCU assists CUCO-Indonesia through Indequa program, Credit Union Microfinance Innovation (CUMI), Credit Union Competency Course (CUCC) and the Credit Union Directors Competency Course (CUDCC), CUCO-Indonesia had been implementing training for a Board and Manager program which is supported by Canadian Cooperative Association (CCA) from Canada. This is a very big influence on the change in mindset both the Board and the Manager of credit union of a mindset that’s just arena get-togethers towards mindset that the CU is a business owned by members and for the welfare of its members.

 

Today, with the fairly sophisticated management tools introduced by ACCU that’s known as Assess Branding then broaden the Committee and Manager to enhance capacity building organization, management and business all of which must be planned, followed up, consistently and also monitored and finally evaluated by Asses Branding method. All strategy, management and efforts of organization should be directed in accordance with it. That’s why before to implement the Assess Branding method, expected all primary have to attempt for process of professionalization that essentially is change in traditional management methods towards professional management.

 

In fact it must be admitted that from 900 of CU, may be only 30% which is follows and having to change and 70% changes is very slowly. This can be proved that:

  1. There are CUs who did not lift up the manager and operational activities is still managed by a Board with part timely.
  2. There are CUs still do not run regeneration process in their CU and still keeps the figure of the founder.
  3. There are many CU are still using a manual system and have not yet to use computer software.
  4. There are many CU have not yet own office to operate daily activities and still lived at board’s house.
  5. And there are many CU who are still do not follow the mutual aid (DAPERMA) program and want to risk its own.

 

In year 2005 CUCO-Indonesia has established the criteria of Ideal Credit Union that includes several components, there are;

1.      Already have a Co-operative Legal Entity

2.      Number of members of at least 1000 people

3.      Have total Asset minimum amount of  Rp.1.000.000.000,

4.      Managed by the employee or manager in a professionally.

5.      Daily service (six days a week)

Having a permanent office

6.      Having and implementing Strategic Planning

7.      Having Operational Standards Management (SOM) and Standard Operating Procedure    (SOP)

8.      Applying information technology (computer software, e-mail, website)

9.      Growth of member at least 35% per year.Simak

 

From 10 of the above ideal CU criteria above, there is several of CU that has exceeded very far, some are still close, but some are still far below the criteria. For those who have exceeded those of criteria we recommend to follow Asses Branding programs, for those who approach us push for immediate achieve these criteria and for those who are still far behind we recommend that they voluntarily want to join the others (amalgamation). See data kopdit development.

 

 

CUCO-INDONESIA MOVEMENT STSTISTICS YEARS :1970-2010 JUNI

 

Years

CU

Members

Total Savings

Outs.  Loans

Total Assets

Reserve  Funds

1970

9

733

1,259,187

710,756

1,342,570

67,257

1975

197

14834

95,463,089

85,322,216

106,272,939

1,775,163

1980

535

56805

1,124,020,616

1,457,677,140

1,456,763,401

43,129,025

1985

1308

145563

7,237,174,298

7,618,001,174

8,801,301,892

306,584,731

1990

1493

195487

20,528,675,976

23,533,395,204

26,527,572,671

1,235,409,435

1995

1601

248811

59,869,540,791

72,961,383,964

91,286,091,902

6,152,662,041

2000

1,099

256,369

169,071,682,089

189,643,318,284

253,752,218,139

15,511,283,523

2005

980

603,728

1,459,244,555,322

1,483,032,674,195

1,874,915,758,233

51,821,392,230

2010

927

1,390,260

6,893,068,982,699

6,312,697,673,479

8,097,486,428,878

335,323,755,331

 

Resource: CUCO Statistics data

 

FUTURE DREAM


It has been 40 years already CUCO-Indonesia are working which is full of love and grief experience, later than 40 years above, divided into three development period, that are: first is the period of the seedbed, the second is the growth period and the last is the strengthening or intensification period. For this strengthening period are includes: strengthening in organization, and management and then strengthening of business. Since 2001 the strengthening period has been implemented, although not all goes according as planned. The Reinforcement or strengthening period was marked by the introduction of minimum service on the criteria of an ideal CU since 2005.

 

If we analyze as globally we can fine that are several credit unions had been met with the criteria of ideal CU, such as: average of assets per CU is Rp.8.735.152.566, - that is Rp.8, 097 trillion divided in to 927 credit unions. Likewise, the average number of members per CU there are 1,500 people, from 1,390,260 people divided in to 927 CU. There are still has not achieved yet in the strengthening of management which is still far from expected, and this can be proved that is only 38% or equal with 350 CU which are using of software computer, and there are part number of credit unions who have a Manager with full authority is only 27% or 250 CU. This should be a priority for 10 years future, so that the Indonesian Credit Union Movement will be classified to be "The Big Five Credit Union in Asia" in terms of assets, number of members and also quality of service.

 

 

In order to achieve that dream, So needed a new Strategic Plan with a focus on goal setting, targeted and integrated from primary level up to secondary or CUCO level. Without the integration, the growth of CU in all sectors are not as expected, and it can be happen that the Strong CU will swallow the Weak CU, and the Slow – growing CU will be left quickly. Planning together is an exit option, so that the CU who has still small will be able to listen and receive input from the strong CU, and instead the big and powerful of CU are willing and able to hold hands for a small credit union.

 

In order to achieve dream of Indonesian Credit  Union Movement to who wants to be The Big Five Credit Union in Asia, so that needed the necessary criteria for the credit union in the future in a 2020, as the following criteria:

  1. Minimum member of 20,000 people
  2. Have minimum asset of CU up to Rp.100 billion and with total share savings is amount of Rp.80 billion.
  3. Utilization of IT online in each branches
  4. Having a permanent office which is suitable with the standards of ideal credit union
  5. Expected 50% of total credit union in Indonesia has been implementing the Access Branding
  6. Expected in each credit union all around of Indonesia has have the own of SOM and SOP.
  7. The growth of member achieved up to 25% per year.

 

 

 

 

.............................................................................................................................

President of CUCO                                                                                                                     General Manager of CUCO

 


 

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