The Roles of Koperasi Mitra Sehati in Improving People's Economy

as a Way of Community Empowerment

Akhyar Akhyar

UIN Sultan Syarif Kasim Riau,Subrantas KM. 15 street, Riau, Indonesia

yarkuok@gmail.com

Keywords: Role of Cooperatives, Creative Economy, Empowerment.

Abstract: This research was motivated the persistence of the low income group, limited employment opportunities and

a little information and dissemination on community empowerment policy at the local level (RW/RT) and

still focused on the level of the village. This study was conducted in RW (Rukun Warga) 14 Sail Tenayan

Raya Pekanbaru. While the research time was from August to November 2016 with qualitative descriptive

approach. The study sample consisted of RW chairman, MFI Chairman and members, and the community at

RW 14. The roles of Koperasi Mitra Sehati provide significant economic contribution; creating a positive

business climate; Developing-based economy to a renewable resource; Innovation and creativity which is a

competitive advantage of a nation; provide a positive social impact. The research also concluded that the

cooperative has a very important role in supporting the economy of the community, one through people's

economic activities (creative economy). Cooperatives have become an alternative to other business

institutions. In this condition, people have felt that the benefits and role of cooperatives is better compared

to other institutions.

1 INTRODUCTION

Pekanbaru is the area that has a very useful source of

information for government and for the public

interest, so that the growing resources is part of a

legal product and local wisdom in the city of

Pekanbaru. For that reason Pekanbaru’s government

has done through its policy plannings that one

people's empowerment.

As we know that community empowerment is

the development process where the community took

the initiative to start the process of social activities

to improve the situation and his own condition. At

the core of community empowerment can only

happen if citizens participate. It is the people who

become agents of development or also known as the

subject1.

Koperasi itself has an impact on social and

economic development process. Empowerment in a

structured and sustainable co-operative will be able

to harmonize the economic structure nasionalm

accelerating economic growth, reducing the open

unemployment rate, reduce poverty, mendinamisasi

real sector, and improve income distribution

community.

Koperasi judged suitable to empower people

because it has the values of justice, solidarity,

brotherhood, and prosperity. In Islam cooperatives

classified as syirkah / syarikah, as Allah says in QS

Al-Maidah: 2 which means: "And please work in

goodness and piety, and do not cooperate with each

other in sin and enmity". Thereby, through

cooperative societies are expected to build their own

economy and one of them with a productive

economy. As for productive economic activity is

community development by providing venture

capital strengthening. This helps the community in

order to avoid poverty. They were able to make

efforts rated contributing to their income.

Based on the foregoing, it is known that the

empowerment of communities in Pekanbaru City

was one of them has been implemented at the Rukun

Warga (RW) 14 Sub-District of Sail, Tenayan Raya,

Pekanbaru.

President of Indonesia Joko Widodo said that

data about koperasi in problems in Indonesia that

from 212.000 koperasi, it was only 150.000 active

koperasi. "This means that around 62.000 koperasi

that is inactive. This is the real potrait that should be

informed," said Jokowi in the celebration of

Akhyar, A.

The Roles of Koperasi Mitra Sehati in Improving People’s Economy as a Way of Community Empowerment.

In Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship (ICEEE 2017), pages 63-69

ISBN: 978-989-758-308-7

Koperasi Day in Jambi as cited by press of Media

and Informasi, Thursday (21/7/2016).

From previous researched done by Djumran

Yusuf, Amiluddin dan Jumrain (2014), it was

revealed that Cooperative gave sizeable role by loan

capital, supply equipment and daily needs of

cooperative’s members who work as a fisherman.

Hence, the purchase decision was not influenced by

the price, and but it was affected by product type,

and goods distribution.

Based on the above phenomenon and research

gap, it is important to do research on the existence of

Koperasi in Indonesia.

Identification of the Problem

Based on the problems described in the background,

the question surrounding this study include:

a. There are some people who are at low-income

groups (the poor) in Pekanbaru.

b. There are also some people in Pekanbaru who

cannot have their own jobs.

c. There are some people who do not know and

carry out productive economic activities in

their economic empowerment.

d. There are some people in Pekanbaru who don’t

belonging to cooperative membership.

e. There are still people in Pekanbaru not fully

determine the role of cooperatives in the

economic empowerment program.

1.1 Limitations

Based on the number of identified problems and

constraints of time, cost and effort, the researchers

limited the study to see what the role of Koperasi

Mitra Sehati in Improving People’s Economic as a

way of Community Empowerment.

1.2 Objective

This study aims to determine the roles of Koperasi

Mitra Sehati in improving people’s economic as a

way of community empowerment.

2 LITERATURE REVIEW

2.1 Definition of Koperasi

Koperasi or Cooperative derived from the English

term is cooperation, co which means togetherness,

while operation means work. So it can be interpreted

that the cooperative is working together or joint

venture for mutual interest. So generally we can say

that the cooperative as an association of people who

voluntarily unite to fight for their economic

improvement towards a better life to prosperity

together doing activities that can help improve their

economies 3.

In addition to the cooperative by Richard Kohl

and Abrahamson is a business entity with ownership

and service users are members of the cooperatives

themselves as well as the supervision of these

enterprises should be done by those who use the

services of the business entity.

The definition of Koperasi in Indonesia is also

contained in the Act No. 25 of 1992 regarding

cooperatives. This law states that the cooperative is a

business entity consisting of persons or legal entities

with the bases cooperative activities based on the

principle of cooperation, as well as people's

economic movement based on the principle of

kinship. The definition can be formulated from the

essential elements of the cooperative are:

1) Cooperatives are business entities.

2) Cooperation may be established by a legal or

cooperatives as well as members of the

cooperative in question.

3) Cooperative managed based on the principles

of co-operative.

4) Cooperative is managed based on the principle

of kinship.

Based on the above notions, it can be concluded

that the cooperative is association of people or

entities that have the goal of achieving economic

prosperity based on the principle of kinship and

mutual cooperation. Cooperative is seen as a

cornerstone of the economy of Indonesia.

The Purpose of Koperasi

As stated in Article 3 of Law 25 of 1992

regarding cooperatives, the purpose of the

cooperative is to promote the welfare of members in

particular and society in general and to help build a

national economic order in order to realize an

advanced society, equitable and prosperous based on

Pancasila and the Law Constitution of 1945. Under

the Act, it can be concluded that the purpose of the

cooperative can be described as follows:

1) To promote the welfare of members of the

cooperative

2) To promote the welfare of society

3) Build a national economic order.

Moreover as set out also in the Law No.17 of

2012 Article 4 also explains the same thing that the

cooperative aims to improve the welfare of members

in particular and society in general, as well as an

integral part of the national economic order that is

democratic and fair. Then, based on the article can

ICEEE 2017 - 2nd International Conference on Economic Education and Entrepreneurship

be explained that the cooperative has a direction and

mandate among others:

1) Cooperation is expected to be a tool to improve

the welfare of its members and the people of

Indonesia

2) Cooperative is expected to be a major part in

the structure and the system of national

economy.

3) Cooperation is expected to be a reflection of

national economic democracy with justice 5.

2.2 Principles of Koperasi

Under Law No. 17 In 2012, Article 6 in detail that

Indonesia has seven principles of Koperasi, as

follows 6:

1) Membership is voluntary and cooperative

2) Supervision by a member made democratically

3) The members actively participate in the

economic activities of cooperatives

4) Koperasi is a business entity that is

autonomous and independent

5) To conduct a cooperative education and

training for its members, supervisors, managers

and employees as well as inform the public

about the identity, activity and benefits of

cooperatives.

6) Koperasi services to their members are primed

and strengthen the cooperative movement by

working together through a network of

activities at the site level, national, regional and

international

7) Koperasi works for the sustainable

development for the environment and their

communities through policies approved by the

members.

2.3 Role and Functions of Koperasi

According to Article 4 of Law No. 25 In 1992,

Koperasi has the function and role as follows 7:

1) To build and develop the potential and

capabilities of member economies in particular

and society in general, to improve the

economic and social welfare.

2) To participate actively in efforts to enhance the

quality of human life and society.

3) To strengthen the economy of the people as the

basis of power and national economy and

become basic principle of economy.

4) To realize and develop the national economy

which is a joint venture based on family

principles and economic democracy.

2.4 The People's Economy (Creative

Economy)

Based on the definition of Howkins that the Creative

Economy is an economic activity in which the input

and the output is the idea. True enough, the essence

of creativity is the idea. Imagine only the capital of

ideas, a creative person can earn a very decent. The

ability to realize the creativity mixed with a sense or

value of art, technology, knowledge and culture be

authorized to deal with the economic competition, so

comes the creative economy as an alternative

economic development to improve the welfare of

society.

The reason why Indonesia needs to develop a

creative economy partly because the great potential

in the creative economy: provides significant

economic contribution; creating a positive business

climate; image building and national identity;

developing-based economy to a renewable resource;

innovation and creativity which is a competitive

advantage of a nation; provide a positive social

impact.

Creative economy is highly dependent on human

capital (human capital or intellectual capital, there is

also a call creative capital). Creative economy

requires creative human resources of course, able to

generate ideas and translate them into the form of

goods and services of economic value. The

production process may follow the rules of the

industrial economy, but the original idea was

creativity.

To boost the development of creative industries

in the country, many benefits that can be achieved if

the government and the supporters of the creative

economy are serious in carrying out their duties,

such as:

1) SME Business growing majority of SMEs

engaged in the creative industries. Some

problems of SMEs in Indonesia, such as

marketing, promotional, managerial,

information, human resources, technology,

design, networking (networking), and the

financing is expected to be resolved soon. As a

result, the expectations of SMEs become a

major driver of the national economy,

contributing 54% to GDP and average growth

of 12.2% per year in 2025 can be realized.

2) To reduce the level of poverty. According to

BPS, the poor in 2007 has reached 16.5%

(approximately 37.1 million), an increase

compared to 2005 of 15.9%.

3) To reduce the unemployment rate. In 2005, the

official unemployment rate was recorded at its

The Roles of Koperasi Mitra Sehati in Improving People’s Economy as a Way of Community Empowerment

highest point, which is 10.3%. Meanwhile, the

open unemployment rate in August 2007

reached 10,01 million people. The rural

unemployment rate was slightly higher than in

urban areas.

According Elitua and Bastian (2011), the

development of creative economy quantitatively

over the last 5 years (2006-2010), indicated that the

average growth in output for 5 years at 3.1%. Then,

Based on the average contribution of the national

economy, creative industries contribute quite large at

7.28%, this result is greater than the contribution of

the sector contributed Finance, Real Estate and

Business Services (6.53%), Transportation and

Communications (6.5%) and Electricity, Gas and

Water (0.85%). In employment, the creative industry

average of 7.75 million labor absorbing than 108

million average amount of the national workforce.

Then, create business field an average of 3 million

companies from 47 million the number of businesses

that exist nationally.

Creative Economy can provide a very broad role

in improving the image of the national economy as

well as the ability to lift the local cultural heritage

then to develop them. Based on the observation that

there can be concluded that the creative economy is

believed to be able to challenge the basic problems

of the national short and medium term, namely: (1)

the high contribution to national economic growth

(an average of 7.28% per year); (2) employment in

the midst of high unemployment (7.75%), and (3) an

active role in international trade. (Mokhamad, 2007)

Economic development of a nation is an important

pillar for the implementation of the process of

development in all fields. Because if the economic

development of a nation is successful, then other

fields such as law, politics, agriculture, and others

would be very helpful. (Dumairy, 1997).

Advantages of the Industry sector of which

contribute to employment and can create value

added (value added) higher on a variety of

commodities produced. According to the Theory of

Economic Development, the higher contribution of

the industrial sector of the economy. The

development of country then the country is moving

forward. If a state contribution of the industrial

sector has been above 30%, it can be said that

country classified as developed countries (Sadono

Sukirno, 2001 in Mokhamad 2007).

2.5 Role in Improving Economic

Cooperation of People (Creative

Economy)

Koperasi Indonesia in the framework of economic

development and the development of the welfare of

members in particular and society in general, the

role and duty to unite, guide, nurture and develop the

potential, creativity, the power of people's business

to increase production and realize the achievement

of a fair income and prosperity (Kartasapoetra, et

al).

Koperasi has benefits and important role in

helping to improve the economy and society as well.

Not only the members, the cooperative board also

felt the same way. Benefits perceived by them in

accordance with their needs. Savings and loans unit

managed by cooperatives Mitra Sehati, such as

providing fresh air for the surrounding community.

Koperasi Mitra Sehati is a cooperative that is based

on the principle of kinship, always provide the best

for its members and the community. The benefits of

a cooperative that is reflected from the objective is

to improve the welfare of members of both the

economic and social level. Welfare is closely related

to the utilization of the services of the cooperative

helped members in the face of difficulties, especially

concerning financial matters.

As one of the pillars of the national economy

increase, the cooperative must continue to evolve in

order to reduce poverty and social welfare. By

looking at the important role of cooperatives in

improving the creative economy, the cooperatives

need to be developed, as it has been in the know that

the benefits of this cooperation is very much among

others, that help people who are less able, with a

view to the welfare of society at large. Social life

more closely and intertwining straps silahturahmi

fellow members and the community.

2.6 Relevant Research

The few studies that are considered relevant to the

investigation to be carried out by the researchers,

which can be used as a reference, among others:

1) The study, entitled "Community Empowerment

through Cooperative Credit Union (A Study on

the Credit Union Pontianak Equator Bakti)" by

Ayub Barombo, Asrori, and Donatianus.

Research results showed that the CU as a

public institution in its activities indirectly

implement community empowerment process

for CU facilitate cooperative society in

economic and social development. This study

ICEEE 2017 - 2nd International Conference on Economic Education and Entrepreneurship

certainly have similarities in terms of

community development, but still have

differences that lie in different cooperatives

and different studies.

2) The study, entitled "The Role of Cooperatives

in Bricks Crafters Community Empowerment

(Case Study on Credit Unions in Desa Jaya

Mandiri Kandangan Trucuk District of

Bojonegoro" by Moch. Joseph. This study aims

to describe how the above mentioned

cooperative role in community empowerment

of brick crafters. it turns out that these

cooperatives provide credit easily to its

members both credit for working capital or for

daily needs, and help market the members

smoothly and decent prices, provide the means

of production used members in the process of

making bricks and to provide guidance to

produce the bricks so that the bricks are

qualifiedly produced. The difference with this

study is to be conducted this research not on

brick producers, but on the overall economic

activity in the creative community of

cooperative members who joined together

constantly in achieving Pekanbaru Program.

3) The study, entitled "The Role of Cooperatives

in Empowering Communities in Medan City"

by Elisabeth Purnama. This study aims to

determine the number of credits earned

development of cooperative members can

increase / economic empowerment of the

family and what the constraints. It is associated

with factors that encourage people to use

cooperative services such as service, location

and people's desire to add to its earnings. The

differences of this research were not looking

for anything like studied by these investigators

but rather on what activities are carried by

cooperative to support community-based

economy of the creative economy.

3 METHODS

This study was conducted in Rukun Warga 14 of

Sail at the District of Tenayan Raya, Pekanbaru. The

research period was from August to November,

2016. The population of the research is people in

Rukun Warga 14 at Sail, District of Tenayan Raya

of Pekanbaru, while the sample of the research is the

chairman of RW 14, the Koperasi supervisor and the

members of Koperasi Mitra Sehati. In this study

used qualitative research methods, it can be

described the design of the research consists of: the

stages of collecting the necessary data, the reduction

and then summarized. Research Library., in this case

the researchers collecting data by studying and

reading related books and theories or documents.The

field research, the authors directly down to the field

to conduct interviews with informants.

Documentation, such as AD / ART of Koperasi

Mitra Sehati. The data obtained by researchers were

analyzed with qualitative analysis technique, then

they were descriptively presented in written. This

technique aims to describe the facts and the data

obtained systematically, and the results of research,

from the results of field studies and literature to then

clarify the results.

4 RESULTS AND DISCUSSION

Koperasi Mitra Sehati is one business cooperatives

precisely addressed at Jalan Ikhlas Gg. Madrasah

RT01 / RW 14 Sail at Tenayan Raya District of of

Pekanbaru. Koperasi was established in August

2015. At the beginning of this cooperative engaged

in the business or activities of savings and loans. But

then the cooperative will also undertake production

business units, marketing business unit, a business

unit of consumption and services business unit. This

cooperative at inception chaired by Ade Syaputra,

and the supervisor is Kalayo Hasibuan. The

cooperative now has initial capital consists of

principal savings and mandatory savings member

Rp. 46.98 million, - which consists of 50 members.

Related savings and loans made by Koperasi

Mitra Sehati, this cooperative has provisions from

the member savings. Each member must pay the

principal in cash at the time of admission of Rp.

50.000,- and each member is required to pay a

mandatory deposit of Rp. 10.000, or capital

investments are calculated as the capital base as

determined in the Bylaws or Member Meeting

Resolutions. (Source: Basic Budgeting of Koperasi

Mitra Sehati, 2015).

As we know that the unit savings and loan

cooperative is also an empowerment effort

associated with moving the cooperative effort in the

utilization and use of resources owned by members

of a cooperative established by member economies

to meet members in particular and society in general.

The role of this cooperative effort is to improve the

community economy, especially the economy of the

people through the creative economy which is now

being developed at this time.

Popular economy (creative economy) in general

is a micro business sectors of the economy which is

cultivated by the common people as members of

Mitra Sehati Business Multipurpose Cooperative.

The Roles of Koperasi Mitra Sehati in Improving People’s Economy as a Way of Community Empowerment

Given the importance of the micro business sector

who have joined in a cooperative, the cooperative

movement must become a priority of the coaching

and development of the business, because businesses

can thus provide jobs and reduce unemployment. It

is only logical that the micro sector who are

members of the cooperative to get attention to be

further developed so it really can be the main

support of the national economy.

Based on AD / ART of Koperasi Mitra Sehati, it

is also described in general business activity is to

serve members by applying economic principles of

cooperatives. The efforts are as follows:

1. Raise funds from members through the

principal savings and mandatory savings

2. Run the savings and loan and other efforts to

members.

Based on interviews with administrators and

supervisors (in October 2016), it was revealed that

Koperasi Mitra Sehati business have categories of

activities:

1. Activities savings and loan

Consists of collecting deposits time and

savings cooperatives cooperatives of members

and prospective members, other cooperatives

and or members; provide loans to members,

prospective members and or its members to

uphold the principles of sound lending by

considering the feasibility assessment and loan

application capabilities.

2. Procurement of creative economic activity and

community members

Koperasi Mitra Sehati also involved in

providing training to increase the creative

economy can be developed communities that

do not have a job as housewife. The role of

Koperasi Mitra Sehati provide significant

economic contribution; Creating a positive

business climate; Developing-based economy

to a renewable resource; Innovation and

creativity which is a competitive advantage of

a nation; Provide a positive social impact.

In terms of improving social welfare is also

related to co-operative societies of creative

economic activity Mitra Sehati has sought

assistance activities / allowance or

remuneration to the members, administrators,

supervisors and managers or employees.

3. The sharing of Operations Revenues (SHU)

In cooperative gains referred to as Operations

Revenues (SHU), is "the difference between

the income earned by the costs incurred in

business management, cooperative revenue

derived from service members and the

community".

The distributions of business is not given directly

to members of the cooperative, but will be used as

capital for cooperatives in the next year, which will

then be used as the management of the cooperative

(Interview with chairman of the cooperative in

October 2016).

5 CONCLUSIONS

Based on the results of research on the role of

Koperasi Mitra Sehati described above, it can be

concluded that Koperasi have a very important role

in supporting the economy of the community, one of

them through the economic activities of the people

(creative economy). Koperasi has become an

alternative to other business institutions. In this

condition, people have felt that the benefits and role

of cooperatives better than any other institution This

is consistent with the understanding of the

cooperatives themselves according to Law No. 25 of

1992, that: "The business entity consisting of a

person or legal entity with the bases cooperative

activities based on the principles of cooperation as

well as people's economic movement based on the

principle of family".

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The Roles of Koperasi Mitra Sehati in Improving People’s Economy as a Way of Community Empowerment