WORKING CAPITAL EFFICIENCY TOWARDS PROFITABILITY IN THE SAMI JAYA CREDIT COOPERATIVE IN KUPANG

This study aims to determine the working capital that has been managed efficiently, to determine the effect of working capital on profitability, and to determine the factors that affect the efficiency of working capital in the Sami Jaya Credit Cooperative in Kupang.The research period used is the period 2015 2019. This research is a quantitative descriptive study. The data used in this research are working capital turnover, cash turnover, accounts receivable turnover, NPM, ROE, and ROA.The results of this study indicate that the working capital of the Sami Jaya credit cooperative is less efficient because each year the working capital does not reach the standard measurement so that its profitability is also inefficient.


Introduction
The development of the times and the increasingly advanced business world in Indonesia, has caused cooperatives to undergo evolution according to the era so that cooperative business forms become freer to develop, especially after the issuance of Presidential Instruction Number 18 of 1998 which aims to increase and encourage the spirit of self-reliance and initiative in cooperating among the community. Accompanied by the provision of convenience in establishing cooperatives in accordance with business feasibility and economic interests. A cooperative is a legal entity established by an individual or a cooperative legal entity, with the dividing of the assets of the members as capital to run a business that meets the common aspirations and needs in the economic, social and cultural fields in accordance with the values and principles of the cooperative. Cooperatives aim to improve the welfare of members in particular and society in general, as well as being an inseparable part of a democratic and just national economic order (Law of the Republic of Indonesia Number 17 of 2012 concerning Cooperatives, 2012).
Credit cooperatives are business service institutions formed by a group of people who voluntarily save their money together so that a certain amount of capital is formed, which is then lent between them at a reasonable interest rate and in an easy way, whose management applies cooperative principles. The management of cooperatives must be based on cooperative principles, namely rationality, efficiency, effectiveness and productivity so that in the end the cooperative can prosper its members and get the maximum possible profit. The main activity of credit cooperatives is to provide deposit and loan services for members. So that in carrying out its main activities, it is very important for cooperatives to pay attention to the management of capital that operates in carrying out their activities so that working capital can be managed properly and efficiently to achieve maximum profit levels so that in the end they can prosper their members (Woeryanto, 2014).
In credit cooperatives, the working capital element plays an important role. If the cash turnover is slow compared to the standard set, the average cash balance will exceed demand. This indicates that there is idle cash because it is not used, so that it can reduce income. Apart from cash, it is also important to pay attention to the turnover of accounts receivable. The higher the turnover of accounts receivable, the faster the turnover, meaning that the shorter the time bound for capital is accounts receivable, the higher the turnover rate, which results in the more efficient working capital.
According to Riyanto (2001), the higher the turnover of accounts receivable, the faster the turnover, which means the shorter the time bound for capital is in receivables, the higher the turnover rate, the more efficient working capital. Because the higher the turnover rate, the faster the working capital in receivables will be recorded, so that the amount of working capital will be greater to finance receivables. The low level of accounts receivable turnover indicates that there is excess working capital embedded in receivables.
The role of capital in cooperative operations has a very important role because without sufficient capital, the cooperative's business will not run smoothly. Cooperatives with less healthy capital will work less smoothly and can even cause failure. On the other hand, a cooperative that works with a healthy capital will lead smooth business activities. In fact, it will generate trust from various parties, including members, entrepreneurs, creditors and banks (Ekawan, 2010).
The availability of working capital, which is quite important for the company in financing its operational activities. Therefore, companies must be able to use their capital effectively and efficiently. Regarding decisions in working capital management, the cooperative must be able to allocate financial resources efficiently and reduce the costs of using capital so as to increase profitability (SHU) in the future.
Profitability describes the level of the cooperative's ability to generate profits. The better the profitability, the better the level of profit the cooperative gets. Profitability is very important for cooperatives because they can find out the ability of cooperatives to manage their working capital efficiently.
Several studies have been conducted to see the efficiency of working capital on profitability. The results of Faurani & Singangerda (2004) research reveal that working capital does not really have an effect on profitability at the Mandalika Cooperative. The same result is also shown by research conducted by Mukhotib (2008) which states that the efficiency level of using working capital is not effective at the SAE Pujon Cooperative. Meanwhile, Nurhidayah (2012) states that working capital turnover can be said to be efficient even though it is not efficient in terms of inventory turnover.
The Sami Jaya Kupang Credit Cooperative, carries out activities as an agency that collects and distributes funds to employees and the general public, but is inseparable from the problems of working capital management. Working capital in cooperatives is used to run all cooperative operations, so that the working capital owned is expected to be sufficient so that it can operate efficiently and be able to get maximum benefits for the cooperative. Therefore, cooperatives need to pay attention to the management of existing working capital so that they can operate efficiently to get maximum benefits. Therefore, the Sami Jaya Credit Cooperative in carrying out its activities needs to pay attention to the capital used for operating activities so that the capital used can be managed efficiently in supporting each activity. With regard to decisions in terms of working capital management, the cooperative must be able to allocate financial resources efficiently and reduce the costs of using capital so that it will be able to increase profits or what is called the difference in operating results (SHU) in the future. So the efficiency that is meant is how the cooperative is able to generate profits (SHU) with the wealth or capital owned, both foreign capital and own capital and reduce the use costs as small as possible. The following is table 1 regarding the development of the Sami Jaya Credit Cooperative in Kupang :  Table 1 shows that the working capital of the Sami Jaya Credit Cooperative in the form of cash has fluctuated and receivables continue to increase. The reason for the decline in cash is presumably because expenses are greater than income, and receivables continue to increase. Receivables have increased, presumably, the amount of funds, revolving around members and there are members who do not pay the loan according to time. On the other hand, the amount of SHU has increased every year. The amount of SHU or the profit earned is not a guarantee that the cooperative is working efficiently. This is due to working capital, namely cash has decreased, due to the large number of costs incurred in cooperative operations and others that have not been matched by an increase in current assets.
Based on this phenomenon, the purpose of this study is to determine the working capital owned by the Sami Jaya Cooperative has been managed efficiently so that it can provide impact on the profitability of the cooperative.

Literature Review
The Cooperative Law of the Republic of Indonesia No. 25 of 1992, states that what is meant by cooperatives is a business entity whose members are cooperative persons or legal entities which base their activities on the principles of cooperatives as well as as a people's economic movement based on the principle of kinship. According to Ekawarna (2010), defines cooperatives as economic organizations that seek to mobilize potential economic resources in order to advance the welfare of members. Because economic resources are limited and in developing a cooperative it must prioritize the interests of its members and face competition in the market, the cooperative must be able to work efficiently following the cooperative principles and economic principles. Therefore, the participation of members will greatly determine the success of the cooperative in helping achieve the economic goals of the members, in accordance with the cooperative's task to strengthen and develop the member economy.
Based on the description, it can be concluded that a cooperative is a business entity whose members are cooperative persons or legal entities, by basing the activities of cooperating in a family friendly manner by basing its activities on the principles of cooperatives as well as as a people's economic movement.
Working capital is capital that is used to finance the day-to-day operations of a company, especially those with a short term. Meanwhile, working capital management is a company investment management of assets if it is short. This means how to manage the company's investment and current assets (Kasmir, 2010). Mistakes or mistakes in working capital management will cause the company's financial condition to be bad so that the company's activities can be hampered or stopped altogether.
An indicator of good working capital management is the efficiency of working capital as seen from working capital turnover, starting from cash assets invested in the working capital component until it returns to cash (Husnan, 2013). The shorter the period the turnover, the faster the turnover, the higher the working capital turnover and the more efficient the company, namely the higher the profitability.
The definition of efficiency put forward by Anthony & Govindarajan (2002)states that efficiency is the ratio of input to output or the number of outputs per unit of input. The same thing was stated by Horngren (2003) that efficiency is the optimum comparison between the input and expenditure. While Halim (2010)

efficiency is the ratio between output and input or the number of outputs per unit compared to the input per unit. Efficiency measures can be developed by linking actual costs with predetermined standard costs. Based on the description above about the meaning of efficiency, it can be concluded that what is meant by efficiency is the ratio or comparison between output and input.
This working capital efficiency shows the management's achievement in managing company resources optimally. The more efficient the use of working capital, the better the company's management performance. Efficiency in working capital management is also very necessary to ensure long-term continuity or success and achieve the overall goals of the company which in this case increase wealth for the owner. Long-term success is greatly influenced by short-term success, because the efficiency of working capital management is important because it encourages companies to achieve long-term goals.
Profitability according to Riyanto (2001) is the company's ability to generate profits for a certain period. Weston & Copeland (2001) suggest that profitability is the net result of a series of policy decisions. Meanwhile, Sartono (2011)defines profitability as the company's ability to earn profits in relation to its own assets and capital. If the company succeeds in increasing its profitability, it can be said that the company is able to manage its capital effectively and efficiently so that it can generate high profits. On the other hand, a cooperative that has low profitability indicates that the company is not able to manage the capital it owns properly, so that it is unable to generate high profits. Aldrina's research result (2013) reveal that the working capital of the employee cooperative is unhealthy. This shows that the management of working capital in the cooperative is inefficient. Research conducted by Kumara & Saputra (2014) reveals that current asset turnover has a negative and significant effect on profitability, which means that the higher the turnover of current assets, the lower the level of profitability of multi-business cooperatives. Fixed asset turnover has no effect on profitability, which means that changes in fixed asset turnover will not affect the level of profitability of a multi-business cooperative. Meanwhile, working capital turnover has a significant negative effect on profitability, which means that the higher turnover of upfront working capital, the lower the level of profitability of multi-business cooperatives.
The results of Febriyanti (2015)reveal that working capital efficiency is able to explain the dependent variable, namely profitability of 96.1 percent, while 3.9 percent is explained by other variables outside the variables studied. While Jauhari & Ridwan (2017) conducted research on Sharia Cooperatives in Banda Aceh City, they found that the average efficiency of using working capital was higher when compared to the average effectiveness of working capital use at the Banda Aceh City Sharia Cooperative, which was 17.06 percent is the average efficiency, while the average effectiveness is 10.61 percent. This means that the average Banda Aceh City Sharia Cooperative tends to be efficient in using working capital to run its business rather than increasing its effectiveness.

Research Method
This study uses a quantitative descriptive approach that aims to explain the phenomena associated with the variables studied. The data used in this research is quantitative data, namely the financial statements of the  Return On Assets Return on assets is a comparison between profit after tax and total assets. The higher the ROA, the greater the profit the cooperative gets and the better the position of the cooperative in terms of asset use. The standard measurement of return on assets based on cooperative regulations is shown in table 7, as follows:  Aldrina (2013) which states that the working capital used is categorized as unhealthy.

Conclusion
Based on the results of the analysis of working capital at the Sami Jaya Credit Cooperative, it can be said that it is inefficient. Because almost all of the turnover did not reach the predetermined target.
Based on the results of the analysis of working capital turnover at the Sumi Jaya Credit Cooperative from 2015/2016 to 2018/2019 shows very small results from predetermined standards. So that working capital of the Sami Jaya Credit Cooperative has an effect on profitability. Because the smaller the working capital turnover, the more it will affect profitability. This can be seen from the profitability ratio, which uses three ratios, namely NPM. ROE and ROA are not efficient.
Based on the results of the analysis, the Sami Jaya Cooperative accounts receivable turnover is low. This is due to the high outstanding outstanding receivables so that the realization value is smaller The analysis shows that the factors that affect the efficiency of working capital at the Sami Jaya Credit Cooperative are cash turnover.

Suggestion
For the Sami Jaya cooperative, it is necessary to improve the efficiency of working capital, especially working capital turnover and accounts receivable turnover. Sufficient working capital management is necessary so that various cooperative activities can be carried out smoothly. In addition, it is hoped that the Sami Jaya Cooperative can continue to improve cash management so that it can be more efficient in utilizing money management in the coming period.
For further research it is recommended to extend the observation period and add other financial ratio indicators that have not been used in this study.