Analyzing the Sharia Cooperatives Efficiency in Aceh Province, Indonesia

Abstract

This study analyzes the efficiency level and the factors that influence the efficiency of Sharia cooperatives in 16 districts/cities in the Aceh province during the 2020-2022 period. The Data Envelopment Analysis method uses input, namely business capital and Islamic cooperatives' assets and Sharia cooperative operations' remaining annual income as the output. The findings show that Sharia cooperatives in Aceh Province are not fully efficient. Several things can influence the efficiency level of Sharia cooperatives. One is that every Sharia cooperative unit in Aceh Province has not recorded reports properly and correctly. It is because Sharia cooperatives in Aceh Province are still relatively new. Therefore, it is necessary to increase efficiency in using good inputs and outputs to produce the efficiency of Sharia cooperatives in Aceh Province.