I.

VARIABLE PERFORMANCE OF COOPERATION AND COOPERATIVE

PRINCIPLES OF PERFORMANCE MEASUREMENT
A. Variable Performance
In general, the variable performance of cooperatives which is measured to
see the development or growth (growth) cooperatives in Indonesia consists of the
institutional (the number of cooperatives in each province, the number of
cooperatives by type / cooperative groups, the number of cooperatives on and
off), the membership, the volume of business, capital, assets, and operating
results. Variables that basically does not yet reflect appropriate to wear see role or
share (share) cooperatives to national economic development. Similarly, the
impact of cooperatives (cooperative effect) to the betterment of the community
members or not yet reflected in the variables presented.
B. Factors Affecting Performance
Performance does not happen by itself. In other words, there are several
factors that influence performance. As these factors according to Armstrong
(1998: 16-17) is as follows:
1 Individual factors (personal factors). Individual factors related to the expertise,
motivation, commitment, etc.
2 Factor leadership (leadership factors). Leadership factors related to the
quality of support and guidance given by the leader, manager, or the chairman
of the working group.
3 Factors groups / co-workers (team factors). Factor group / partner relating to
the quality of support provided by colleagues.
4 Factor system (system factors). System factors related to system / method of
work available and the facilities provided by the organization.
5 Factor situation (contextual / situational factors). Factors associated with
stress situations and changes in the environment, both internal and external
environment.
From the description given by Armstrong, there are several factors that can
affect the performance of an employee. These factors need to be taken seriously
from the employer if the employee is expected to provide optimal contribution.
Motivation and ability to work is a dimension that is important in determining
performance. Motivation as a boost in self-employees will determine the resulting
performance. So is the work ability of employees, which is able to whether or not
the employee in performing the duties would affect the performance generated.

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 The higher the ability of the employees increasingly determine the resulting
performance.

C. Understanding Performance Measurement

Performance measurement is the process in which organizations set
parameters for the results achieved by the program, investments, and
acquisitions were carried out. The process of measuring performance often
requires the use of statistical evidence to determine the rate of progress of an
organization in achieving its objectives. The fundamental purpose behind the
measurement is done to improve performance in general.
Performance measurement is also the result of a systematic assessment and
performance indicators are based on group activities such as indicators of
inputs, outputs, results, benefits, and impacts. Performance measurement is
used as a basis for assessing the success and failure of implementation of
activities in accordance with the goals and objectives that have been set in order
to realize the vision and mission.
Performance measurement is a management tool used to improve the quality
of decision making and accountability. Performance measurement is also used
to assess the achievement of goals and objectives (James Whittaker, 1993)
Meanwhile, according to Junaidi (2002: 380-381) "Performance measurement
is the process of recording and measuring the achievement of the activities in
the direction of achieving the mission through the results displayed in the form of
products, services, or processes". That is, each of the company's activities shall
be measured and expressed its relevance to the achievement of the company's
direction in the future expressed in the mission and vision of the company.
From the above definition can be concluded that the performance
measurement system is a system that aims to help managers assess the
company's achievement of a strategy through measurement tools of financial
and non-financial. The measurement results are then used as feedback that will
provide information on the achievements of the implementation of a plan and the
point where companies require adjustments on the planning and control
activities.

D. Performance Measurement Principles

In measuring performance, there are several principles, namely:
1 All the activities of the significant work must be measured.

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 2 The work is not measured or assessed cannot be managed because of it
there is no objective information to determine its value.
3 Work that is not measured should be minimized or even eliminated.
4 Output expected performance should be set for the entire employment
measured.
5 The output provides the basis for establishing accountability results
instead of simply knowing the level of effort.
6 Define performance in terms of what kind of work he wanted was the way
managers and supervisors to make operational work assignments.
7 Performance reporting and variance analysis should be done periodically.
8 Reporting that often allows for immediate corrective action and timely.
9 timely corrective action so necessary for effective management control.

II. THE INSTITUTIONAL, MEMBERSHIP, VOLUME OF BUSINESS, CAPITAL,

ASSETS, AND OPERATING RESULTS (SHU)
According Sitio and Tamba (2001), generally variable cooperative performance
is measured to see the development or growth (growth) cooperatives in Indonesia as
a business entity consisting of the institutional (the number of cooperatives in each
province, the number of cooperatives by type / cooperative groups, the number of
cooperatives on and off), the membership, the volume of business, capital, assets,
and operating results (SHU). Here is the information about the amount of
Cooperative in Indonesia from each Province and the other information which
uploaded by the Department of Cooperative and SMEs in Indonesia.
A. The Institutional (Kelembagaan)
The role of cooperatives as an alternative financial institution existence of
cooperatives in the economic life of society today proved still needed, particularly in
order to encourage the growth rate of unit - a unit of small and medium enterprises,
which are generally small communities be back alive. As a Cooperative Economic
Organization, is a business entity that is able to generate a profit and development of
the organization and its business, using business management system as a
business entity.
Cooperative institution is a financial institution that uses the principle of family
and work together, and has a goal is to improve the economic level of its members
and the surrounding community. There are three important goals of an institution is
established such as:
1. Maximize Profits: an institution should be able to maximize the advantages
that come to improve their quality, as well as members of the surrounding.

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 2. Maximize Companys Value : after a maximum benefit institutions, agencies
and even then must implement the values that carried since its inception.
3. Minimize Cost: to implement the 2nd point of an institution should be able to
take advantage of existing resources or limited to streamline implementation
B. The Membership (Keanggotaan)
Cooperatives in Indonesia, according to the 1992 Act, is defined as a
business entity consisting of individuals or legal entities with the bases cooperative
activities based on the principles of cooperation as well as people's economic
movement based on family principles. In Indonesia, the cooperative principle has
been included in the Act No. 12 of 1967 and Law No. 25 of 1992. The principle of co-
operatives in Indonesia is roughly equal to the principles of internationally recognized
with a slight difference, that their explanation of the SHU (Business Profits).
1. The nature of cooperative membership are:
a) Voluntary: each member of the cooperative signed up to be members of
the cooperative of their own accord, and can be offered to resign should
he feel less benefit from the cooperative efforts or for other reasons such
as transfer addresses and so forth.
b) Transparent : that the cooperative membership does not discriminate in
any form. Everyone who is able to meet the terms of the cooperative
membership can be accepted as a member of the cooperative.
2. The Cooperative Membership Requirements are:
a) Every Indonesian citizen (WNI) who is able to take legal action or
cooperative legal entities that meet the requirements.
b) Accept the foundation and principles of cooperative
c) Willing to obligations and rights as a member
3. Membership ends when the cooperative declared as follows:
a) If the members are passed away
b) Asked to stop because of his/her own decision.
c) Dismissed by board because it does not qualify for membership
4. The Memberships Obligations which according to the Article number 20 Act
No. 25 in 1992 are:
a) Comply with basic budget and bylaws (anggaran rumah tangga) and
decisions agreed upon meeting of members.
b) Participate in activities organized cooperative effort.
c) Developing and maintaining solidarity based on the principle of kinship.
5. The Memberships Rights which according to the Article number 20 Act No. 25
in 1992 are:
a) Attend and express opinions and vote in the meeting of members.
b) Choose and or been a member of the board or superintendent.
c) Ask the members' meeting held under the provisions of the statute.

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 d) To put forward opinions or suggestions to the board members outside the
meeting whether requested or unsolicited.
e) Utilizing the cooperative and gets the same service among members.
f) Obtain information on cooperative development under the provisions of
the Law (UU)
6. Bukti Keanggotaan Koperasi
The register of members is one set by the Law of Cooperatives, because the
register of members includes about full name, age, livelihood, residence, date of
entry into member, thumbprint left or signature member, for dismissal of a member,
the signature chairman and the date of the written signature.
C. Volume of Business (Volume Usaha)
According to Suwandi (1988: 38), that "the volume of business is the totality of
activities are reflected in the form of value for money and is the central point of the
interaction of many variables in the cooperative so that the volume of business is a
measure of the total activity measured in terms of money as well as to provide any
conducted cooperative for a certain period of time ".
Business Volume is the total value of the sale or receipt of goods or services
over a period of time or the fiscal year concerned. The economic activities of
cooperatives in essence can be seen from the large volume of the cooperative effort.
Activity or business conducted by the cooperative can benefit as much as possible,
especially for cooperative members and society in general. Businesses or activities
carried out can be seen from the large volume of business that will affect the profit or
surplus by a cooperative (Arifin Sitio and Tamba Halomon, 2001: 142).
D. Capital (Permodalan)
Authorized Capital
The main objective is to establish a cooperative organization to accumulate
the financial potential of the founders and members that although initially be small
but still there.
Equity
a. Principal
Saves principal is the amount of money that must be deposited into the treasury
of cooperatives by the founders or members of the cooperative at the time of
membership. Principal savings can not be withdrawn by the cooperative members
for the respective still recorded to be members of the cooperative.
b. Deposits Mandatory

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 consequence of these deposits is to be done by all members of the cooperative
can be adjusted size with the purpose of the cooperative effort and funding needs to
be collected, the arena was accumulated compulsory savings of the members
should be directed at achieving a certain amount in order to support the need for
funds to be used to run cooperative efforts.
c Reserve Fund
reserve fund is the amount of money earned from the partial results of operations
that are not distributed to the members; the goal is to cultivate their own capital
which can be used at any time if the cooperative needs funds suddenly or cover
losses in the business.
d Grant
Grant is an aid, donations or free gift that does not expect a return or retaliation of
any kind. Anyone can give grants to cooperatives in any form all have that sense; to
avoid becoming dependent cooperative with the grantor that can interfere prisnsip
principles and principles of cooperatives.
Capital Loans
a. Loansfrom the Member
Loans obtainedof the cooperative members may be equated with voluntary savings
of members. If the voluntary savings, then a large fraction of the stored value
depends on the willingness of members. Instead the loan, worth cooperatives borrow
money or money's worth from the member.
b Loans from Other Cooperative
basically begins with the cooperation made by fellow agency cooperative effort to
assist each other in the areas of capital requirements. The shape and scope of
cooperation that could be made in a broad or narrow in scope; depending on the
needs of the capital required.
c Loans from Financial Institutions
Commercial Loans from financial institutions to get the cooperative enterprises in
terms of priority. Priority is given to cooperatives in fact the government's
commitment of the countries concerned to lift the economic capabilities of the people
especially cooperative efforts.
d Bonds and Bonds
To increase the capital of the cooperative can also sell bonds or debentures to the
public investors to seek fresh funds from the general public outside of the

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cooperative members. Regarding the requirement to sell bonds and debentures
subject to the provisions of existing capital market authority.
e Sources of Finance
Allfinancial resources, but financial resources are derived from unauthorized funds
can be used as a place to borrow capital.
Distribution Cooperative Reserves
Reserves according to Law No. 25/1992, is the amount of money earned from the
preliminary operating results are included to foster its own capital and to cover
losses cooperative when needed. According to the statutes which refers to Law No.
12/1967 determines that 25% of the SHU obtained from member businesses set
aside for reserves, while SHU is derived not from member businesses of 60% set
aside for reserves. A lot of benefit distribution of reserves, such as the example
below:
1 Fulfill certain liabilities
2 Increase the amount of operating capital cooperative
3 As a guarantee for a possible loss in a later
4 expansion of businesses

E. Asset
asset is property owned and managed by the cooperative to run business
operations. Assets are resources controlled by the cooperative as a result of past
events and from which future economic benefits expected to be obtained by the
cooperative. Assets acquired from donations, which are not bound to use, are
recognized as fixed assets.
Components Assets
1 Current assets ie assets that have a useful life of less than one year. The
classification of current assets include:
Expected to be realized or held for sale or use, within normal operating
cycle of the entity;
Held for trading (traded);
Expected to be realized within 12 months after the end of the reporting
period.
Current assets include the estimated components:

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 Cash is the value of paper currencies and metals, both in rupiah and foreign
currency as a legitimate means of payment.
The Bank is a cooperative bank deposits of certain liquid, such as savings,
current accounts and deposits and other deposits.
The securities are investments in various forms of securities, which can be
melted and sold in cash at any time;
Accounts Receivable is a cooperative bills as a result of the delivery of
goods / services to others who are not paid in cash.
Member Loans receivable is billed as a result of cooperative lending
transactions (cash / credit of the goods / services) to members.
Loans receivable Non-members are cooperative bill as a result of lending
transactions (cash / credit of the goods / services) for non members.
Allowance for Doubtful Accounts is provision for a certain value, as "nominal
value deduction" loans receivable on the possible risk of bad debts, which is
set up to cover possible losses from loans receivable provision.
Inventory is the value of cooperative wealth is invested in inventory, inventory
either in the form of raw materials, semi-finished, and finished goods to be
traded in order to provide services to members and the organization of
transactions with non-members;
Prepaid expenses are a number of funds that have been paid to the other
party for the benefit of goods / services.
Revenues accrued are various types of income of the cooperative that can
already be recognized as income but can not be accepted by the cooperative;
Other Current Assets.
2. Current Assets
Non-current assets are assets that consist of several kinds of assets, the useful life
of more than one accounting period, is owned and used in operational activities with
the use of compensation in the form of depreciation costs (depreciation).
Noncurrent assets includes the estimated components:
Long-Term Investments, an asset or assets invested in secondary
cooperatives, other cooperatives or companies for a period of more than one
year can not be disbursed in the form of deposits or equity participation.

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 Investment property, is property (land or building or part of a building or both)
is controlled (by the owner / lessee cooperative or a finance lease) and can
generate rental or capital appreciation or both. Investment property not used
for production or supply of goods / services, administrative purposes, or sold
in their daily business activities.
Accumulated Depreciation Investment Properties, is "a deduction of
acquisition value" of a property investment, as a result of the use and the
passage of time. Accumulated depreciation carried out systematically during
the initial use of up to age benefits.
Fixed assets, tangible assets that are held for use in the production or supply
of goods / services to rent to others, or for administrative purposes and is
used more than one period. The fixed assets include an estimate: Land /
Rights to Land, Buildings, Machinery and Vehicles, Inventory and Office
Equipment.
Accumulated Depreciation of Fixed Assets, is a "deduction from the value of
the acquisition" a cooperative of fixed assets owned, as a result of the use
and the passage of time. Accumulated depreciation carried out systematically
during the initial use of up to age benefits.
Intangible Assets, are non-monetary assets that can be identified but has no
physical form. Held for use in production or rented to other parties or for
administrative purposes. Examples of intangible assets are: patents,
copyrights, forest entrepreneurs, quota import / export, franchising.
Accumulated Amortization of Intangible Assets, is "a deduction value
acquisition" an intangible asset that is owned cooperatives, as a result of the
use and the passage of time.
Other Current Assets, is an asset that is not included as the number 1 to 7 as
the building is not yet completed.
F. Operating Result (SHU)
SHU cooperative is a difference of all income or total revenue(totalrevenue)or
commonly denoted (TR) with costs or total cost(totalcost)with the symbol (TC) in one
year time.
SHU net of reserve funds, distributed to members of comparable services of
the work done by each member of the cooperative, as well as used for the

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 purposes of education cooperatives and cooperatives, in accordance with the
decision of the Meeting of Members.
The amount of capital accumulation reserve funds set out in the Meeting of
Members.
Determining the amount of distributions to the members and the type and
amount determined by the Member Meeting in accordance with the AD / ART
Cooperative.
SHU The amount received by each member will be different, depending on
the amount of participation capital and revenue transactions to the formation
of the cooperative members.
The larger the transaction (business and capital) with the members of the
cooperative, the greater the SHU will be accepted.
In the calculations, the value of SHU members to do if some of the basic information
known as follows:
1. SHU total cooperatives in the financial year
2. part (percentage) SHU member
3. The total deposits of all members
4. The total of all business transactions (volume of business or turnover) which
originate from member
5. the amount of savings per member
6. turnover or volume of business per member
7. part (percentage) SHU for member savings
section 8. (percentage) SHU for business transactions member.
The distribution formula SHU
MenurutUU No. 25/1992 Article 5 ayat1
Saying that "the division of SHU members do not solely based on the capital
owned by a person in a cooperative, but also based on the balance of
business services to the members of the cooperative. This provision is the
embodiment of hospitality and justice ".
In AD / ART cooperative has determined the division of SHU as follows:
Reserve cooperatives 40%, 40% of member services, fund administrators 5%,
5% employee fund, education fund 5%, 5% social funds, development funds
5% neighborhood.

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 Not all components of the above should be adopted in dividing his SHU. It
depends on the decision of members specified in the meeting of members.
Following the principles of division of SHU cooperative:
- SHU is divided from the member
- SHU members paid in cash
- SHU member is capital services and business transactions
- SHU members performed transparently

III. THE EFFICIENT COOPERATIVE

Basically the cooperative as a company is no different from other forms of
business entities, meaning that should not be said to be a cooperative can work
inefficiently to achieve the objectives of the organization as a collection of people. In
a cooperative, the level of efficiency must also be seen in balance with the level of
effectiveness. because the high service charge for members offset by benefits to
achieve better local services, for example Cost from door to door services provided
by the cooperative to its members.
The main key is the efficiency of cooperative business services to their
members. Cooperative to keep costs as low as possible but the members are not
getting good service can be said business is not fuel-efficient in addition to not have
a high level of effectiveness, because the impact is not felt by members of their
cooperation.
Discussion about efficiency, Thoby Mutis (1992) shows the 5 scope of
cooperative efficiency, ie the efficiency of internal, external efislensi allocative
efficiency, dynamic efficiency and efficiency. Definition of efficiency are:
1 Internal efficiency society is the best ratio of excess costs with actual costs. It
can be associated with a ratio value of net income and net worth spending
2 Allocative efficiency is related to the utilization efficiency of resources and
funding from all components of the cooperative. For example, the distribution
of members' savings for member loans, channeling voluntary savings for
pan.lang and short-term investments. It is usually seen in comparison
voluntary savings and growth equity capital to loan growth, cross-borrow or
annual investment. As a basic level of efficiency measurement used a sample
of cooperative financial statements (balance sheet, income statements, and

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 reports the change in capital) in addition of course other data vang required
as listed in the report of the board accountability.
3 Efficiency of External shows how the efficiency of the institutions and
individuals outside the cooperative who participated indirectly stimulate
efficiency in the cooperative.
4 Dynamic efficiency is the efficiency of commonly associated with optiniasi rate
due to changes in the technology used. Each technological change will have
an impact on the resulting output. Of course, new technology will be used if
productivity is better than the original.
5 Social efficiency often associated with the utilization of resources and funds
appropriately, because it does not cause the cost or burden.

IV. CLASSIFICATION OF COOPERATIVE

The purpose of classification cooperatives are:
1. Know the cooperative's performance within a specific period
2. Establish cooperative qualification rankings
3. Encourage cooperation in order to implement the cooperative principles and
rules of flying businesses healthy.
The classification of types of cooperatives can be distinguished by a variety of
things:
1) First, the classification of the cooperative based on government regulations
applicable to cooperatives. In this classification cooperative distinguished as follows:
a. Village Unit Cooperatives (KUD).
The cooperative is directed specifically to rural communities.
b. General Cooperative.
General cooperative can be established by anyone and anywhere.
2) Second, based on the number of types of business:
a Single Purpose Cooperative.
Cooperatives which have only one type of business.
b Multi Purpose Cooperative
Cooperatives that have more than one kind of business that are managed
simultaneously.
3) Third, cooperatives are distinguished by type of business field, is as follows:
a. Cooperative Credit Or Credit Unions.
Cooperative that manage saving and loan business as well as bank.
b. Cooperative Production.
Cooperative that manages the business of production of certain goods.
Example: batik artisans cooperatives, dairy cooperatives, and cooperative
entrepreneurs know Indonesia.

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 c. Cooperative consumption.
Cooperative that manages the selling of goods. The realization of this
cooperative effort is usually shaped shop.
d. Cooperative Services.
Cooperative that manages business services.
4) Fourth, based on the types of members:
a. Primary Cooperative.
A cooperative whose members individual base, the minimum number of
cooperative members have twenty people.
b. Secondary Cooperative.
Cooperative whose members are legal entities cooperative.
5) Fifth, the cooperative is based on the status of members, as follows:
a. Cooperative civil servants.
b. Cooperative farmers.
c. Cooperative traders.
d. Fishing cooperatives.
e. Student cooperatives and cooperative student.
Guidelines for cooperative classification improved to a rating system that is
based cooperative legal basis of the Regulation of the Minister of Cooperatives and
SMEs No. 22 / PER / M.KUKM / IV / 2007 on grading guidelines Cooperatives and
Ministry of Cooperatives and SMEs No. 06 / PER / M.KUKM / III / 2008 concerning
Amendment to the Regulation of the Minister of State for Cooperatives and SMEs
No. 22 / PER / M.KUKM / IV / 2007 on Guidelines for Cooperative rankings.

V. CONCLUSION
Variable performance of cooperatives which is measured to see the
development or growth (growth) cooperatives in Indonesia consists of the
institutional (the number of cooperatives in each province, the number of
cooperatives by type / cooperative groups, the number of cooperatives on and off),
the membership, the volume of business, capital, assets, and operating results.
Performance does not happen by itself. In other words, there are several factors that
influence performance. the performance measurement system is a system that aims
to help managers assess the company's achievement of a strategy through
measurement tools of financial and non-financial. In measuring performance, there
are several principles
Cooperative institution is a financial institution that uses the principle of family
and work together which is transparent and voluntary and has a goal is to improve
the economic level of its members and the surrounding community. There are three

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important goals of an institution is established such as: maximizing profits,
maximizing companys value and minimizing the cost.
As with any form of business entity to another, to run the business activities of
cooperatives need capital to accumulate the financial potential of the founders and
members that although initially be small but still there. The cooperative capital
consists of equity and loan capital. A cooperative surely have an asset as a resource
controlled by the cooperative as a result of past events and from which future
economic benefits expected to be obtained koperasiKekayaan owned and managed
cooperatives to run business operations. The cooperative also has a difference of all
income or total revenue (total revenue) or commonly denoted (TR) with costs or total
cost (total cost) with the symbol (TC) within one year of time called Time Results of
Operations.
Cooperative is not much different from the Integration in general, where the
cooperative also must run effectively and efficiently. Effective means the level of
good service to members of the cooperative, while the efficiency is the use of funds
as minimum as possible to achieve the goal. However, despite the use of the funds
is minimal if the quality of service to members decreased, it can be said that
cooperatives run inefficiently. So in creating a cooperative efficiency, the use of funds
and services must be considered
Classification of Cooperative can be divided into five big groups, such as
based on government regulations, the number of types of business, by type of
business field, the types of members and the status of members. The guidelines to
classify the cooperative is based on cooperative legal basis of the Regulation of the
Minister of Cooperatives and SMEs No. 22 / PER / M.KUKM / IV / 2007 on grading
guidelines Cooperatives and Ministry of Cooperatives and SMEs No. 06 / PER /
M.KUKM / III / 2008 concerning Amendment to the Regulation of the Minister of
State for Cooperatives and SMEs No. 22 / PER / M.KUKM / IV / 2007 on Guidelines
for Cooperative rankings.

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