KONVERSI KOPERASI KONVENSIONAL MENJADI KOPERASI SYARIAH DI KOTA PADANG PANJANG

Abstract

The city of Padang Panjang is one of the cities in West Sumatra with great potential for the development of Islamic financial institutions. One of the Padang Panjang City Government's programs, which involves converting conventional cooperatives into Islamic cooperatives, has yet to be fully realized. The objective of this research was to examine the implementation of the conversion of cooperatives into Islamic cooperatives in the city of Padang Panjang. The factors that hindered the conversion process and the government's efforts to accelerate the development of Islamic cooperatives were also investigated. The method used in this article was field research. Data was obtained through interviews and documentation. The research results indicate that the process of converting cooperatives into Islamic cooperatives in the city of Padang Panjang is in accordance with Article 5 of the Minister of Cooperatives and Small and Medium Enterprises Regulation No. 11/PER/M.KUKM/XII/2017. This process includes socialization, General Meeting of Members (RAT), business transition based on Sharia principles, identification of Regional Original Revenues (PAD), PAD notarization, and PAD approval. The efforts made by the Padang Panjang City Government have been sufficient and well-implemented. However, challenges are still faced by both the cooperative's management and members in the field.