Participatory and Culture-Based Approach to Assess Cooperative Health

Abstract

This study aims to analyze the health level of a Baitul Mal wa Tamwil (BMT) or an Islamic financing institution of  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 such as balance sheets, statements of business results, and cooperative health assessment working papers. The results show 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