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KSP Indosurya 'beyond our authority', says OJK about cooperative in default
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The logo of the Financial Services Authority (OJK) is seen at its headquarters in Jakarta in this undated photo. (Kontan)
T
he Financial Services Authority (OJK) says the case of savings and loans cooperative KSP Indosurya, which has failed to repay customer funds, lies outside of its supervision.
OJK spokeswoman Sekar Putih Djarot said in a statement on Sunday that the authority was in close contact with the Cooperatives and Small and Medium Enterprises Ministry on handling the situation, as KSP Indosurya fell under the ministry’s authority. The OJK was also coordinating with the Investment Alert Task Force on handling the institution’s inability to repay customers, she said.
KSP Indosurya customers reportedly came forward in February and complained that the cooperative had failed to return customer funds citing “unfavorable economic conditions” that affected its financial performance.
The cooperative also said it needed to take strategic steps to improve its financial situation, according to a letter issued by KSP Indosurya to its customers on Feb. 20.
“One of the strategic steps we are taking is to automatically extend timed savings that fell on Feb. 10,” KSP Indosurya wrote in the letter. The management also said that it would pay all of its obligations to its customers “when the situation improves”.
The situation, however, failed to improve as KSP Indosurya filed for a debt service postponement with the Central Jakarta Commercial Court on March 6. The filing document does not provide many details, stating only that the cooperative had debts that had reached the due date, and the company could postpone debt repayment for 45 days following the court’s ruling.
Former employees of the cooperative have also come forward after media reported that the cooperative was laying off a majority of its employees without severance pay. The reports said KSP Indosurya could lose up to Rp 10 trillion (US$636 million) in customer funds.
Multiple efforts by The Jakarta Post to contact KSP Indosurya for clarification were to no avail.
Sekar of the OJK said the cooperative was not legally related to financial holding Indosurya Group, despite the same name.
“Indosurya Group is a financial conglomerate supervised by the OJK,” she said in the statement.
The conglomerate consisted of PT Indosurya Inti Finance as the main entity, securities firm PT Indosurya Bersinar Sekuritas, investment management firm PT Indosurya Asset Management, life insurer PT Asuransi Jiwa Indosurya Sukses and several Bank Perkreditan Rakyat (BPR) or secondary banks.
Indosurya Inti Finance spokesperson Sarastika Putri also said in February that her company was not related to the cooperative.
