The Role of Islamic Cooperatives in Improving the Economy in Banda Aceh, Indonesia

Abstract

-The economy in Banda Aceh has been growing rapidly now days since the implementation of the sharia economic system. We can see this in Banda Aceh with the presence of sharia banks, sharia cooperatives, sharia tourism, sharia hotels, and others. The purpose of this study is to determine the role of Islamic cooperatives in improving the economy in Banda Aceh. The type of data used was primary data obtained from a questionnaire. The technique of data analysis used was a multiple linear regression. The result of this research shows that the partial variable of welfare economy played a positive and significant role in improving the economy in Banda Aceh. The partial variable implementing the principles of economic democracy, openings in job fields, and providing business opportunities for each member had negative and insignificant roles in improving the economy in Banda Aceh. Simultaneously, all variables had a positive and significant effect in improving the economy in Banda Aceh. Keywords-Welfare economic; Economic democracy; Job opportunity; Business opportunities