Implementing the Right Strategy Helps Control Non-Performing Loan. Case Study: Mekar Kasih Credit Union

The main problem often faced by financial institutions engaged in credit business such as savings and loan cooperatives are maintaining the level of non-performing loan at its ideal ratio. Mekar Kasih Credit Union is a cooperative engaged in savings and loan business domiciled in Makassar, South Sulawesi. Mekar Kasih Credit Union has controlled non-performing loans at an ideal condition, below 5% of the loan portfolio. This study aims to examine the relevance between the strategy formulated from the strategic planning process and the success of controlling non-performing loan in cooperatives. The study used a qualitative method through semi-structured interviews with branch managers as management leaders at the branch level and secondary data in the form of document studies. From the research results it can be concluded that the strategy formulated from the strategic planning process is by the conditions in the field and can be implemented well, it can help management performance in controlling non-performing loan. Likewise, if the strategy can be described in concrete steps by TP managers and is relatively understood by the staff who always implement the strategy in the field. The success of the strategy implementation is also supported by a relevant Operations Manual and daily evaluation by Branch Managers of the strategy implementation.