The Public Hearing (RDPU) Committee II about the Bill of Micro Finance Institutions (LKM) was led by Vice-Chairman of Committee II DPD RI, dr. Budi Doku, in Committee II meeting room on 3^rd floor Building B DPD RI, Senayan, Jakarta, Monday (24/01).

At noon, Committee II held the RDPU which was attended by the Managing Director of UMKM Bank Indonesia, Edi Setiadi and staffs and the Chairman of the Baitul Maal Waa Tamwil (BMT) Centre, Awalil Rizky, accompanied by his staffs, in order to get input from sources associated with the preparation of Views and Opinions Bill on Micro Finance Institutions.

The exposures are delivered by UMKM, such as Bank Indonesia welcomed this Bill on Micro Finance Institutions, the financial actors in the Indonesian economy consists of three pillars namely banks, non bank financial institutions and cooperatives. And each has had its authority but the LKM has not had a legal entity as mentioned by the Managing Director of UMKM, “while the existence of LKM has not been included into three groups, so in order to provide services to the community, any public funding in the financial system of a country must have a legal basis or authority “he said.

The BMT Center Association has a view that the Bill on the LKM should be based on the five main things which are prepared on the basis of proper understanding of how the LKM operates this day, second, it must be based on the 1945 Constitution, particularly articles about the economy, the third really aims and has a material protection to micro business rather than give opportunity to the owners of big capital, the fourth to give protection to people who do the transactions deposit or savings through LKM, the fifth is that the bill must be visionary, able to anticipate future economic developments, especially related to the LKM and micro-businesses.

The RDPU of Committee II DPD RI resulted in several conclusions including the Bill on Micro Finance Institutions to provide legal protection against activities of Micro Finance Institutions in order to empower and support UKM in both to raise and distribute funding to increase community participation in the economic field also to ease access toward financing activities, the bill on Micro Finance Institutions have to manage underwriting and financing institutions issues, standardization of operations of micro finance institutions, licensing and supervision of micro finance institutions to provide legal certainty and legal protection against the customers of micro finance institutions, and laws must be oriented to the 1945 Constitution which is the economic populist.

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