Settlement Of Bad Loans In The Granting Of Farm Credit Credit Through Cooperatives In Bengkalis Regency
Introduction
Cooperatives play a vital role in the granting of Farmers Credit (KUT) in Bengkalis Regency, but they face significant challenges, including bad credit. The laws and goals of cooperatives aim to improve the welfare of members and the community, but the issue of bad credit threatens the sustainability of the cooperative. This article discusses the causative factors, completion, and responsibilities of cooperative management related to bad credit in the granting of KUT.
Background of Cooperatives and Farmers Business Credit
Law Number 25 of 1992 concerning Cooperatives emphasizes that cooperatives aim to advance the welfare of members and the community in general. Cooperatives are expected to contribute to the national economy, creating a just and prosperous society based on the values of Pancasila and the 1945 Constitution. In an effort to achieve these goals, cooperatives need to adapt to the times, especially in an increasingly competitive economic world.
However, in the midst of the implementation of the Farmers Credit Program, there was a problem of bad credit that could threaten the sustainability of the cooperative itself. This research focuses on how cooperatives in Bengkalis Regency overcome the problem, as well as understanding the responsibilities of the management in managing this loan.
Causes of Bad Loans in the Granting of Farm Credit Credit
Based on research conducted in several cooperatives in Bengkalis Regency, several factors causing bad loans were identified. These factors include:
- Fluctuating Economic Conditions: Farmers are often trapped in uncertain market conditions, which have an impact on their ability to pay back the loan.
- Lack of Understanding of Financial Management: Many cooperative members do not understand how to manage their loans well, so they have difficulty planning a refund.
- Insufficient Supervision: The management may not have adequate supervision over the loan distribution process, leading to negligence and intentional actions that result in bad loans.
- External Factors: Unexpected events, such as natural disasters or market fluctuations, can also contribute to bad loans.
Settlement of Bad Credit in Farm Business Credit
Settlement of bad credit problems in Bengkalis Regency is not only done through legal channels, but rather prioritizes the methods of deliberation and negotiations. This process involves cooperative members, management, and other related parties such as the Cooperative Office and the Bank. This approach is considered more effective because:
- Building a Good Relationship: Deliberation can create a stronger bond between cooperative members and management, making it easier to solve problems in the future.
- Minimizing Conflict: By prioritizing dialogue, the potential for conflict can be minimized, and mutually beneficial solutions can be achieved.
- Increasing Awareness: This process also functions to educate members about the importance of responsibility in loan management.
Cooperative Management Responsibilities
Cooperative management has a big responsibility in the distribution of farm business credit. These responsibilities arise when there is negligence or intentional from the management that results in bad loans. However, the results showed that in Bengkalis Regency, the main factors causing bad loans were more influenced by the negligence of members and unexpected events, not solely by the actions of the management.
The management needs to prioritize good communication with members and implement a strict surveillance system to the process of submission and credit utilization. In addition, education about financial management and the importance of loan returns is also very necessary to increase member awareness.
Conclusion
Settlement of bad loans in the granting of farm credit credit through cooperatives in Bengkalis Regency is a joint task between the management and members of the cooperative. Although there are significant challenges, a humanist approach through deliberations and negotiations, as well as sustainable education, will greatly affect the smooth process of returning credit. It is expected that with the right steps, cooperatives can continue to function as an economic pillar that contributes to the welfare of the community, as well as supporting the growth of the agricultural sector in the area.
Recommendations
Based on the research findings, the following recommendations are made:
- Strengthening Communication: Cooperative management should prioritize good communication with members to ensure that they understand the importance of loan management and the consequences of bad loans.
- Implementing a Strict Surveillance System: The management should implement a strict surveillance system to monitor the loan distribution process and prevent negligence and intentional actions that result in bad loans.
- Providing Education and Training: Cooperative management should provide education and training to members on financial management and the importance of loan returns to increase member awareness.
- Encouraging Deliberation and Negotiation: Cooperative management should encourage deliberation and negotiation between members and management to resolve conflicts and find mutually beneficial solutions.
By implementing these recommendations, cooperatives in Bengkalis Regency can overcome the problem of bad credit and continue to function as an economic pillar that contributes to the welfare of the community.
Q: What is the main challenge faced by cooperatives in Bengkalis Regency in granting farm credit credit?
A: The main challenge faced by cooperatives in Bengkalis Regency is the problem of bad credit, which threatens the sustainability of the cooperative.
Q: What are the causes of bad loans in the granting of farm credit credit?
A: The causes of bad loans in the granting of farm credit credit include fluctuating economic conditions, lack of understanding of financial management, insufficient supervision, and external factors such as natural disasters or market fluctuations.
Q: How do cooperatives in Bengkalis Regency settle bad credit problems?
A: Cooperatives in Bengkalis Regency settle bad credit problems through deliberation and negotiation between members, management, and other related parties such as the Cooperative Office and the Bank.
Q: What is the role of cooperative management in the distribution of farm business credit?
A: Cooperative management has a big responsibility in the distribution of farm business credit, including prioritizing good communication with members, implementing a strict surveillance system, and providing education and training on financial management and loan returns.
Q: How can cooperatives in Bengkalis Regency overcome the problem of bad credit?
A: Cooperatives in Bengkalis Regency can overcome the problem of bad credit by implementing a humanist approach through deliberations and negotiations, as well as sustainable education and training on financial management and loan returns.
Q: What are the benefits of a humanist approach in settling bad credit problems?
A: A humanist approach in settling bad credit problems can create a stronger bond between cooperative members and management, minimize conflict, and increase awareness about the importance of responsibility in loan management.
Q: How can cooperative management prioritize good communication with members?
A: Cooperative management can prioritize good communication with members by holding regular meetings, providing clear and concise information about loan management and repayment, and encouraging open dialogue and feedback.
Q: What is the importance of education and training on financial management and loan returns?
A: Education and training on financial management and loan returns are essential to increase member awareness and understanding of the importance of responsible loan management, which can help prevent bad loans and promote sustainable economic growth.
Q: How can cooperatives in Bengkalis Regency encourage deliberation and negotiation between members and management?
A: Cooperatives in Bengkalis Regency can encourage deliberation and negotiation between members and management by creating a safe and supportive environment for open dialogue, providing training and education on conflict resolution and negotiation, and promoting a culture of collaboration and mutual respect.
Q: What are the long-term benefits of implementing a humanist approach in settling bad credit problems?
A: The long-term benefits of implementing a humanist approach in settling bad credit problems include increased member satisfaction, improved relationships between members and management, and a more sustainable and resilient cooperative that can contribute to the welfare of the community and support the growth of the agricultural sector.