International Journal of Religious and Cultural Studies Vol.
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E-ISSN 2656-694x Participatory and Culture-Based Approach to Assess Cooperative Health Rosa Aulia Nurhaini1*.
Irfan Fatoni2.
Khojanah Hasan3.
Indah Dewi Nurhayati4
1,2,3,4,
Universitas Widyagama Malang *Corresponding author Auliarossa09@gmail.
ARTICLE INFO
Article history Received 10 September 2024 Revised 5 October 2024 Accepted 11 November 2024 Keywords Cooperative Health.
Financial Performance.
Capitalization.
Operational Efficiency.
ABSTRACT
This study aims to analyze the health level of BMT Baranangsiang Cooperative by assessing aspects of financial performance and capital in accordance with the technical guidelines of the Deputy for Cooperatives No.
15 of 2021.
This research focuses on identifying the causes of declining cooperative health predictions and providing strategic solutions to improve performance and public trust.
This research uses quantitative methods with secondary data in the form of financial statements in 2023 such as balance sheets, statements of business results, and cooperative health assessment working papers.
The results showed that the cooperative's health score in the financial performance aspect was classified as quite healthy with the capital aspect still in the healthy category.
The decline in health scores was caused by the high ratio of operating costs to operating income, the increase in non-performing receivables, and the suboptimal risk management of receivables.
A participatory and culture-based approach can improve the financial performance and capital of BMT Baranangsiang Cooperative, by creating a more inclusive and sustainable management.
This is an open access article under the CC-BY-SA license Introduction In business activities in Indonesia, there are various forms of legal entities of companies, one of which is cooperatives, as one of the components of the national economy, cooperatives are expected to develop into a means of business that can contribute to economic democracy in all fields.
Cooperatives as one of the pillars of the economy in Indonesia must adopt a culture-based and participatory approach to maintain its relevance in the dynamics of modern society.
Based on Law Number 25 of 1992 concerning Cooperatives in Indonesia, it is considered that cooperatives as a people's economic movement or as a business entity that plays a role in realizing an advanced, just, and prosperous society based on Pancasila and the 1945 Constitution in the national economic system which is structured as a joint org/10.
34199/ijracs.
http://ijracs.
ijracs@rumahpeneleh.
ISSN 2656-694x International Journal of Religious and Cultural Studies Vol.
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effort based on the principle of family and economic democracy.
A cooperative is an organization owned and operated by members to meet their economic, social, and cultural needs and desires together.
Cooperatives prioritize the principles of justice, transparency, and active participation of their members in decisionmaking .
According to .
cooperatives as business entities formed based on the principles of family and mutual cooperation, which aim to improve the economic welfare of their members by sharing profits and risks.
The main purpose of establishing a cooperative is to create a just, prosperous, prosperous, and independent society based on Pancasila and the 1945 Constitution .
The purpose of cooperatives is stated in Law No.
25 of 1992 concerning cooperatives, in Chapter II Article 3 states that the purpose of cooperatives is:
"To advance the welfare of members in particular and society in general and to participate in building a national economic order in order to create an advanced, just and prosperous society based on Pancasila and the 1945 Constitution".
Savings and loan cooperatives are funds that must be paid by members to the cooperative within a certain time and opportunity which of course cannot be withdrawn as long as the person concerned is still a member .
The savings collected and distributed are principal savings which means the same amount of money that members must pay to the cooperative and cannot be withdrawn as long as the person concerned is a member.
Furthermore, there are mandatory savings, which are a certain amount of savings that do not have to be the same for each cooperative.
Previous research according to .
as many as 21 cooperatives have been analyzed based on the capital aspect referring to the Technical Instructions of the Deputy for Cooperatives of the Ministry of Cooperatives and SMEs of the Republic of Indonesia No.
15 of 2021 concerning the Guidelines for the Cooperative Health Examination Working Paper.
Shows that the capital aspect of Cooperatives in Banjarmasin City in the 2022 financial year obtained an aspect of 82.
5 with the Healthy category.
This score is represented by the capital adequacy indicator, namely the equity ratio to total assets, the capital adequacy ratio, and the capital management adequacy indicator, namely the ratio of member loan capital to total assets, and the ratio of long-term liabilities to equity.
And according to .
with the results of financial performance at the Sawit Makmur Cooperative which is reviewed from 3 aspects, financial performance evaluation, financial management and financial sustainability, the health level of the Sawit Makmur Cooperative is categorized as quite healthy.
Regulation of the Minister of State for Cooperatives and Small and Medium Enterprises of the Republic of Indonesia, concerning Technical Instructions for the Deputy for Cooperatives Number.
15 of 2021.
Guidelines for the Cooperative Health Examination Working Paper (KKPKK).
The classification of cooperative health assessment aspects is divided into 4 .
points which include governance, risk profile, financial performance, and finally the capital aspect .
The purpose of the cooperative health assessment is to provide guidelines to assessors, cooperative movements, and the community so that cooperatives can carry out financing, investment, and savings business activities based on the cooperative's identity professionally in accordance with the principles of prudence and Nurhaini.
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E-ISSN 2656-694x health, so that it can increase trust as much as possible and provide great benefits to members and prospective members .
The AuBMT BaranangsiangAy cooperative whose business is collecting funds and distributing loans to members needs to be managed professionally to increase trust and provide maximum benefits to members and the surrounding community.
Assessment of capital aspects is also very necessary so that cooperative management is carried out professionally, effectively, and efficiently.
Good cooperative management will produce policies that are in accordance with the objectives and support the progress of the Therefore, to see the health of the cooperative, one should not only look at its financial aspects but also assess the capital aspects.
Based on the formulation of the problem described above, this study aims to analyze the health level of the BMT Baranangsiang Cooperative by assessing aspects of financial performance and capital according to the technical instructions of the Deputy for Cooperatives No.
15 of 2021.
Method The approach used by researchers is quantitative research and uses statistical formulas to help analyze the data and facts obtained.
This research method is by means of observation, interviews, documentation and literature studies at the BMT Baranangsiang Cooperative .
This study focuses on the analysis of the health assessment of the BMT Baranangsiang Cooperative from the aspect of financial performance and capital based on the Technical Instructions of the Deputy for Cooperatives No.
15 of 2021.
Results and Discussions 1 Results From the quantitative data used, namely the financial report of the "BMT Baranangsiang" Cooperative which includes the Balance Sheet and Calculation of Business Results in 2023 and other supporting quantitative data are the results of the cooperative's health assessment (KKPKK) in 2023.
The results of the ratio calculation analysis include aspects based on the Technical Instructions of the Deputy for Cooperatives No.
15 of 2021, but in this case the researcher focuses on 2 .
aspects, namely, the financial performance aspect and the capital aspect.
And in the last 2 years the "BMT Baranangsiang" Cooperative has conducted a cooperative health assessment based on Deputy Technical Instructions No.
15 of 2021.
Table 1 Results of the Cooperative Health Assessment Working Paper (KKPKK) according to the Technical Instructions of the Deputy for Cooperatives No.
15 of 2023 Nurhaini.
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Under Supervision FINANCIAL
PERFORMANCE
FINANCIAL
PERFORMANCE
EVALUATION
Under Supervision Under Supervision Special
PROFITABILITY
Asset Profitability (Return on Asset.
Not healthy Return on Equity Unwell
Operational Independence Healthy Enough EFFICIENCY Under Supervision Operating costs to operating income Healthy Enough Business Costs against
Gross SHU
Unwell
Under Supervision Under Supervision Special
FINANCIAL
MANAGEMENT
ASSET QUALITY
Loans to Members Against Total Receivables Healthy Problematic Loans Against Total Receivables Not healthy Risk Reserve for NonPerforming Loans Not healthy LIQUIDITY Healthy Enough Cash and Banks against Healthy Nurhaini.
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Short-Term Liabilities Receivables against
funds received Not healthy Current Assets to LongTerm Liabilities Healthy FINANCIAL
CONTINUITY
Under Special
Supervision GROWTH
Under Special
Supervision Asset Growth
Not healthy Growth of Funds Not healthy Equity Growth
Not healthy Net Operating Result
Growth
-65%
Not healthy ASPECTS OF SELFIDENTITY Healthy Main Income to Total
Income
Healthy Net SHU to Principal Savings Mandatory Savings Unwell
Member Savings Participation Healthy Healthy Healthy CAPITAL
CAPITAL ADEQUACY
Equity to Total Assets Healthy Capital Adequacy Healthy Healthy ADEQUACY OF CAPITAL
MANAGEMENT
Nurhaini.
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Member Loan Capital to Total Assets Healthy Long-Term Liabilities to Equity Healthy Healthy Enough SCORE VALUE & PREDICATE
MEDICAL EXAMINATION
The analysis of improving the health level of the "BMT Baranangsiang" Cooperative conducted by researchers focuses on 2 aspects, namely financial performance and capital Based on the Technical Instructions of the Deputy for Cooperatives No.
15 of 2021, the aspects assessed are given an assessment weight and score according to the magnitude of the influence on the health of the cooperative.
The aspect assessment is carried out in numbers from 0 .
to 100 .
ne hundre.
2 Discussion 1 Financial Performance Evaluation Financial Performance Aspects (Profitability and Independenc.
Return on Assets The results of the BMT Barangsiang cooperative health assessment found a ratio of only 23%, with a score of 1, which is included in the "unhealthy" category.
As a comparison, this category uses an assessment where the BMT Baranangsiang cooperative still found a ratio of 5.
24% with a score of 3, included in the "fairly healthy" Researchers found a drastic decrease in the ROA ratio of 4.
So from its total assets, the "BMT Baranangsiang" Cooperative must be able to achieve income higher than 1.
This can be achieved, among others, by adding new members and creating more diverse products.
Return on Equity (Return of Equalit.
The standard value of Deputy Technical Instruction No.
15 of 2021, if categorized as healthy, the ratio must be above 10%.
Compared to the results of the 2022 health assessment, the "BMT Baranangsiang" cooperative found a ratio of 13.
89% with a score of 4 "Healthy" predicates, this is one of the researchers' concerns because the comparison ratio decreased drastically from the "healthy" category to the "unhealthy" category, with a decrease ratio of 10.
Operational Independence The results of the research on the financial performance of the operational independence aspect both showed a "healthy" predicate with a score of 4 with a ratio achievement above 120%.
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Operating Expenses to Operating Income The research results show a ratio of 77.
63% where operational costs to operational income are quite balanced.
Operating Costs to Gross SHU Operating Costs to Gross SHU Cooperatives of 79.
BMT Baranangsiang cooperative still gets the predicate "Less Healthy".
Because in the last 2 years because of business costs, one of which is seen as a large amount, can be made efficient.
This is due to the lack of operational income, and the existence of members who are not disciplined in saving mandatory savings every month, with business costs that continue to increase.
2 Financial Performance Analysis (Financial Managemen.
Productive Asset Quality Loan Receivables and Financing to Members Against Total Loan Receivables.
The research results of the category value of the AuBMT BaranangsiangAy cooperative found a perfect ratio of 100% with the AuHealthyAy category, so there were no problems found in the cooperative.
Non-Performing Loans to Total Receivables The results of the study obtained a ratio of 180.
49% with the predicate "Unhealthy" increased by 24.
57% to 205.
06% with the same predicate, namely "Less Healthy".
This is a concern for researchers in the category of "BMT Baranangsiang" cooperatives there is no decrease in the ratio, after analysis it was found that the "BMT Baranangsiang" cooperative was less able to resolve problematic financing.
Liquidity Aspect Cash and Banks Against Short-Term Liabilities The results of the cash and bank category against short-term liabilities increased by 87% to 51.
38% and obtained the predicate "Healthy".
This is certainly a concern for researchers because the "BMT Baranangsiang" cooperative is able to recognize the use of services/interest correctly, and has strengthened the SOP on fundraising.
Loan Receivables Against Funds Received The ratio results decreased by 5.
5% to 66.
67% and also obtained the predicate "Less Healthy".
From the analysis of the increasing volume of member receivables due to the member verification stage to increase the loan ceiling requires an analysis of total savings, and it was found that there was a lack of member savings in upgrading Current Assets Against Short Term Liabilities The ratio results are 154.
60% respectively.
This is because the AuBMT BarananagsiangAy Nurhaini.
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correctly, and has strengthened the SOP regarding the collection of current liability funds.
3 Financial Sustainability Growth Asset Growth Aspects The result of the asset growth ratio of -1.
81%, this has attracted the attention of researchers because there is a sign of unhealthy criteria with a ratio <4.
From this problem, the researcher's analysis at the "BMT Baranangsiang" cooperative experienced problems in managing cash flow because members were reluctant to pay current credit Growth of Funds Received The result of the fund growth ratio received was -2.
17% with the category "Unhealthy", because it is still difficult to collect member debts that are difficult to contact the office.
So that the income is still less than optimal due to being constrained by collection Equity Growth The result of the equity growth ratio was -6.
67% with the category of "Unhealthy".
The analysis conducted by the researcher found that the financial performance of the "BMT Baranangsiang" cooperative experienced a very drastic decline with an increase in member debt that was not fully paid to fill the cooperative's services/interest.
Net Operating Result Growth The net operating income growth ratio decreased by -65% with the category "Unhealthy".
This was caused by a decrease in member demand to apply for financing/credit, accompanied by an increase in the operational costs of the "BMT Baranangsiang" cooperative, and influenced by a decrease in service/interest payments by members who were not orderly in paying installments/credit in accordance with the provisions of the "BMT Baranangsiang" cooperative.
Identity Aspects Main Income to Total Income In this case, the main income to the total income of the cooperative "BMT Baranangsiang" did not find any problems.
The results of the ratio of income to total income were 95.
13%, so the management was able to align the main income from member participation and the total income of the cooperative even though the amount of income decreased.
Net SHU to Principal Savings Mandatory Savings The AuBMT BaranangsiangAy cooperative experienced a very drastic decline with a ratio of 12%, this was caused by a drastic decline in net SHU with increasing principal and mandatory savings or it could be that principal and mandatory savings were not Nurhaini.
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Member Savings Participation There is no problem with member savings because the income of the "BMT Baranangsiang" cooperative in determining the ratio of decline or increase in the results of the cooperative health assessment, can maintain the predicate "Healthy" with a ratio 87% in 2022 and get a ratio of 97.
53% in 2023.
4 Capitalization Capital Coverage Equity to Total Assets The result of the ratio of equity to total assets is 35.
This is because the AuBMT BaranangsiangAy cooperative is able to maintain its own capital against total assets.
Capital Coverage The capital coverage category by the AuBMT BaranangsiangAy cooperative is quite good with a ratio value of 59.
71%, so the category is healthy.
Because ATMR (Risk Weighted Asset.
are included in the calculation of office inventory, researchers found that the AuBMT BaranangsiangAy cooperative rarely buys inventory items that tend to be Adequacy of Capital Management Member Loan Capital to Total Assets The AuBMT BaranangsiangAy Cooperative was able to maintain its AuHealthyAy predicate with an increasing ratio, this is because the AuBMT BaranangsiangAy Cooperative has optimized member loans to finance its assets with a ratio value of 61.
CONCLUSION
Based on the results of the research conducted, it can be concluded that the health assessment of the "BMT Baranangsiang" cooperative based on the Technical Instructions of the Deputy for Cooperatives No.
15 of 2021, in terms of the overall aspect of the health value of the "BMT Baranangsiang" cooperative fell to 74.
80 with the same predicate, namely "fairly healthy".
The financial condition and performance of the "BMT Baranangsiang" cooperative are still in quite good condition, although they have to increase members to fully rise and look for strong prospective members and carry out selection first to achieve a good From these conditions, it shows that the management of the "BMT Baranangsiang" cooperative is felt to be quite effective and efficient.
A culture-based approach helps build member trust, while active participation increases the effectiveness of capital management.
The values of family and mutual cooperation have proven to be the main factors in maintaining the financial stability of the cooperative.
The distribution of financing needs to be more aggressive but remains selective and careful, so that the amount of financing increases which is expected to encourage increased income and SHU.
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REFERENCE