HumasUPNVJ - In the context of discussing changes to Law No. 1 of 2013 Concerning Financial Institutions The Chancellor of UPN Veterans Jakarta (UPNVJ) and the ranks of the Faculty of Law (FH) received a visit from DPD RI Committee IV at the Bhinneka Tunggal Ika Auditorium, on Friday (04/03/22).

The event began with remarks from the Deputy for Administrative Affairs of DPD RI, Lalu Niqman Zahari, S.Sos., M.Sc. He conveyed about the legislative function of the DPD RI, namely fighting for the aspirations of the local community in the form of a Draft Law that is guided by the Long-Term National Legislation Program.

Then also said Committee IV DPD RI is in charge of economic matters and the drafting of laws (RUU), especially in Law Number 1 of 2013 Microfinance. The law is based on service facilities to the community, MSME adaptation to technology whose awareness is still relatively low and people's financial literacy is still low.

According to him, in order to improve the product of the law, the law should be evaluated at least 4-5 years. In DPD RI, the Secretary General has a very important task by providing technical support and expertise.

At the end of his speech, he was of the opinion that today's activities were good to ensure that products from DPD RI were of higher quality. He also advised academics to provide input on the product of the law.

In this case the Chancellor of UPNVJ Dr. Erna Hernawati, Ak, CPMA, CA​, CGOP said that designing or drafting a law requires useful input to contribute to society in order to provide solutions to existing problems.

"With today's event, I hope students are able to find out how the DPD works or the scope of work of the DPD. In addition, it is expected to be able to maintain the performance of DPD RI. A good Community Financial Institution (LKM) is capable of increasing transportation, productivity, economy and income," he hoped.

In the empirical discussion that took place moderated by Ali Imran Nasution, SH, MH which was continued with the opinion conveyed by Bagus Aryo Ph.D.

In this case Bagus argues that Community Finance institutions are a special tool in contributing to community development. This is because MFIs are able to provide welfare and financial opportunities for MSMEs as well as low or poor economic communities who do not have financial reports and are at the high-risk level which causes banks to be unwilling to provide financial assistance. MFIs play a role in increasing access to funding in economic empowerment. according to him,

In addition to Bayu, Sony Maulana Sikumbang, SH, MH, he is of the opinion that Community Finance institutions are instruments for government policy as DPD Drafting. in drafting laws requires a legal side. Therefore, the Law needs to be changed along with the times and the human way of thinking that is able to back up the existing facts. Due to changes, the old law may be replaced in its entirety by a new law or if only part of it, a law on amendment may only be issued.

Other speakers Dr. Iwan Erar, SH, SP.N., M.Kn also believes that MSMEs in Indonesia are related to mutual cooperation. Therefore, MFIs that are based on the law must be able to enter into a culture of gotong royong. In business transactions in Indonesia, it is divided into two, namely, but must still be based on Pancasila and the 1945 Constitution.

"Law is a tool used to achieve a goal and the benefits of law are legal justice (society) and legal certainty (government). Therefore, legal culture must be implemented in MFIs regarding modern business. In the legal and economic paradigm there are two objects, namely the government and business actors. The contract must be made in detail, “said Iwan.

Iwan also said that in reality many of our people still rely on deliberation for consensus. So that later when a problem arises you have to use the services of a lawyer by paying a fortune to solve the problem. Between the framework: legal, regulatory, institutional and contract must pay attention to reliable, effective and efficient. So that in making a legal product one has to look at whether the legal product is reliable, effective and efficient.

The final opinion came from Faizi Ph.D. according to him, the keyword that must be used is how this MFI can increase the income and welfare of the community, especially the poor who have low incomes. Crucial problems faced in the implementation of MFIs are issues of licensing, ownership, supervision, assessment of financial soundness and providing benefits to the community. Some of the crucial issues, which include:

1. Ownership restrictions

2. Guidance and supervision system

3. Minimal access to capital from Community Initiated MFIs

4. Assessment of financial health