ANALYSIS OF THE TRANSFORMATION OF VILLAGE-OWNED ENTERPRISES (A Study on the Transformation of Wlahar Wetan Village Credit Union into PT BPR BKD Banyumas Regency)

Abstract

Banking services in rural areas have become necessary for rural communities since the enactment of the Village Law. The government establishes a public institution that offers financial services closer to the village to fulfill this need, namely PT BPR BKD Banyumas. Before the official establishment of PT BPR BKD Banyumas, the responsibilities of this public institution were held by BKD Wlahar Wetan. BKD Wlahar Wetan has demonstrated its quality as a provider of financial and economic services. However, due to changes in time and other factors, the village government decided to transform BKD Wlahar Wetan into PT BPR BKD Banyumas based on Banking Law No. 10 of 1998 and OJK Regulation No. 10/POJK.03 of 2016. This transformation resulted in changes to the working system and organization of BKD in Banyumas Regency. This study aims to determine the transformation stages BKD Wlahar Wetan underwent to become PT BPR BKD Banyumas and the impact of the changes. This qualitative study uses a descriptive approach, with data collection techniques involving field research. This study concludes that the transformation process underwent three stages: unfreezing, changing, and refreezing. The transformation of BKD Wlahar Wetan led to various modifications, including changes in goals, culture, technology, organizational structure, and volume of activities. These changes have positively impacted and aligned with the Islamic management function, based on the principles of effectiveness and efficiency, while providing positive value to the community.