The Impact on the Savings Cooperatives of the Companies that Lost Income During the Covid-19 Situation: A Case Study of Saving Cooperatives in the Aviation Industry

Abstract

This Article aimed to (1) study the impact of the situation of the outbreak of the COVID-19 virus on the financial performance of savings cooperatives under the agency that lost income and (2) study the implementation and adaptation guidelines to cope with the impact of the outbreak of the COVID-19 virus to the savings cooperative under the agency that lost income. This research is a quantitative and qualitative research. The tools used for data collection were from in-depth interviews with the management of the cooperative. And collecting quantitative data from the Cooperative Auditing Department of five cooperatives. The information of the period from 2011-2020 gathered included the number of members, the number of shares capital, the total revenue, the member's deposit, and the net profit of cooperatives. The analysis tool was the Panel Data Regression, using the Random Effect Model. The results of the study shown that the Covid-19 pandemic situation did not affect the financial performance of savings cooperatives as well as the number of members. But there were only factors, the number of shares capital, the total revenue and the member's deposit amount that affected the financial performance of the savings cooperative. The guidelines for the operations of savings cooperatives on the companies that lost income during the COVID-19 situation. From interviews with the management of the cooperative explained that the impact of the COVID-19 pandemic situation mainly affects to cooperative's members. The cooperatives were affected by physical operations but did not affect the financial performance of savings cooperatives. Guidelines of cooperative have to convert their operation thru online system, all online operating procedures including proposes various projects to help members who was affected by the COVID-19 situations.