W Sumatra Cooperatives are Encouraged to Develop Real Sector

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W Sumatra Cooperatives are Encouraged to Develop Real Sector

Illustration - Cooperatives. (Antara)

Padang, (Antaranews Sumbar) - The cooperatives in West Sumatra are encouraged to leave the savings and loans business and move on to the real sector in order to keep developing, Head of Provincial Cooperative and SMEs Office, Zirma Yusri stated in Padang on Tuesday.

"Now it is still dominated by savings and loan business, but not all of them run well so that it must begin to move to other business field," he said.

He said it was related to efforts to maintain the role of cooperatives in the area.

Saving and loans cooperatives have been relatively good so far if their members have fixed incomes and loans, it can be directly deducted. In here, cooperative credit is very small and even zero, while its assets can continue to grow.

But for savings and loan cooperatives that have members who are more diverse and have no fixed income so that the loan must be delivered or picked up by the board. Here, the average of bad credit is high.

Meanwhile, a bankable member would choose to take a low-interest of KUR instead of a loan cooperative which is at relatively high interest rates.

"We asked this kind of cooperatives to move to the real sector, for example in the agricultural sector. Let the members try to access KUR, the results will be accommodated by the cooperative," he added. (cha)

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Editor: Vicha Faradika
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