Padang Business Cooperation Volume Reached Rp1.46 Billion

Padang, (Antara Sumbar) - The volume of cooperative businesses in Padang Municipality, West Sumatra, until October 2017 amounted to Rp1.46 billion from 676 active cooperatives in the area.

Head of the Office of Cooperatives and Micro Small Medium Enterprises (MSMEs), Yulisman in Padang, Friday said the volume of cooperative business consists of the volume of savings and loan business and the real sector.

Savings and Loans business volume of Rp1.15 billion and real sector business Rp314 million.

While the accumulated capital of cooperatives up to 2016 amounted to Rp1.04 billion consisting of own capital Rp579 million and capital outside Rp468 million.

He said the total volume of cooperative business is still far below, compared to other areas outside West Sumatra such as in Java Island that has reached trillions.

"Therefore, by 2018 the volume of cooperative business is targeted to increase by five percent," he said.

In addition, until now the cooperative in Padang has absorbed a workforce of 2,786 people consisting of managers and employees with 124,853 members of the cooperative.

"If the cooperative grows then the percentage of employment increase in the cooperative sector will increase too, and in 2018 it is targeted to increase by five percent" he said.

Meanwhile, Expert Staff for Economic Affairs and Development of Padang, Afrizal Khaidir said of 676 active cooperatives in the area, only 101 units or 15 percent in the healthy category.

While the cooperative whose financing volume has reached Rp2.5 billion a year and must be audited public accountant according to the Minister of Cooperatives and SME RI No. 15 of 2015 only about 17 percent or 115 units of existing active cooperatives.

"If evaluated, the main problem in the development of cooperatives is still related to a lot of arrears stuck in the savings and loan business, so that the cooperative difficult to increase the scale of business," he added. (cha)

Editor: Vicha Faradika