The Impacts of COVID-19 Pandemic on the Business Performance of Savings and Loan Cooperatives: Empirical Study of the Early Period in Indonesia

Abstract

This study is carried out to show the impact of COVID-19 on business performance and resilience characteristics of savings and loan cooperatives during the early stages of the pandemic's declaration in Indonesia. Furthermore, this study focuses on savings and loan cooperatives in the food, batik craft/industry, and tourism clusters. The results show that (1) there are contractive (decreasing) and expansive (increasing) impacts of the pandemic during its early period on the business performance of savings and loan cooperatives in terms of assets, capital, volume, collectability, and profit surplus. (2) Contractive impacts are observed in the tourism and food clusters, while normal-expansive impacts are reported in the batik craft/industry cluster. (3) The resilience response characteristics include uncontrollable and well-controllable cooperatives.