scholarly journals Sharia Hybrid Contract Compliance of Islamic Microfinance Institutions in Jepara Regency

2020 ◽  
Vol 4 (2) ◽  
pp. 441
Author(s):  
Mahmudatus Sa’diyah ◽  
Asep Gugun Gumilar ◽  
Edi Susilo
Keyword(s):  
Content Analysis ◽  
Field Research ◽  
Analysis Approach ◽  
Microfinance Institutions ◽  
Hybrid Products ◽  
Contract Compliance ◽  
Microfinance Institution ◽  
Islamic Microfinance

The purpose of this study was to examine the sharia compliance of the Hybrid Contract of the Syriah Microfinance Institution (LKMS) in Jepara Regency. This type of research is a Field Research, using a content analysis approach; to interpret data not as a series of physical events, but as symbolic symptoms to reveal the meaning contained in a text, and the understanding of the message presented. The research object selected was BMT in Jepara Regency which applies contract and unique hybrid products, namely BMT Mitra Muamalah (Mitramu) which has the product "Gold Pawn" and BMT Harapan Bersama (HARBER) which has a Musyarakah Mutanaqishah (MMq) product. The results showed that the Musyarakah Mutanaqishah (MMq) financing agreement at BMT Harapan Bersama (HARBER) Jepara was in accordance with the DSN-MUI fatwa NO: 73 / DSN-MUI / XI / 2008. Rahn's contract which is run by BMT Mitra Muamalah Jepara is in accordance with the DSN-MUI Fatwa Number: 25 / DSN-MUI / III / 2002, and Fatwa DSN-MUI Number: 26 / DSN-MUI / III / 2002.. Weak internal and external supervision at Cooperative entities, the implementation of hybrid contracts in the field is prone to deviations and falling to "Riba".

scholarly journals Akad Tijarah Dalam Praktek Di Lembaga Keuangan Mikro Syariah - BMT

2020 ◽  
Vol 2 (1) ◽  
pp. 15-28
Author(s):  
Nandang Ihwanudin ◽  
Handri Handri ◽  
Deden Gandana Madjakusumah ◽  
M Munir Asrori
Keyword(s):  
Case Studies ◽  
Trade Agreement ◽  
Profit Sharing ◽  
Business Practices ◽  
Microfinance Institutions ◽  
Literature Reviews ◽  
Microfinance Institution ◽  
Islamic Microfinance

Purpose- Akad tijarah as a form of trade agreement has several types, in which needs to be adjusted to each necessity. It is important for related parties to understand what and how akad ijarah works. This article analyses how far the contribution of an Islamic microfinance institution (LKMS) nowadays, considering there are nash (Al-Qur’an and Al-Hadits) and also fatwa the national sharia council (DSN) MUI. Methods- Case studies and literature reviews are used to evaluate sharia business practices in BMT. Findings- Sharia microfinance institutions, in this case, BMT TUMANG, have carried out sharia principles in practice, especially for tijarah agreements with documents in the form of SOM and SOP as well as financing contracts (agreements), both in the principle of sale and profit-sharing. Implications/Limitations- This study is limited to one branch of the BMT so it cannot describe the overall practice carried out in other regions.

scholarly journals Innovation of Risk Mitigation Model for Islamic Equaty-Based Financing in Islamic Microfinance Institutions in Indonesia

2021 ◽  
Vol 124 ◽  
pp. 10004
Author(s):  
Muhammad Pisol Bin Mat Isa ◽  
Naelati Tubastuvi ◽  
Sri Wahyuni ◽  
Maran Marimuthu ◽  
Ridhuan Tony ◽  
...  
Keyword(s):  
Business Strategy ◽  
Financial Institution ◽  
Risk Mitigation ◽  
Structured Interview ◽  
Payment System ◽  
Business Failure ◽  
Microfinance Institutions ◽  
Microfinance Institution ◽  
Islamic Microfinance ◽  
Selection Of

Islamic Microfinance institution (MFI) funded either by government or private financial institutions are playing an instrumental role in discharging business fund to the eligible micro entrepreneurs (ME). The potential of micro entrepreneurs to succeed in their business is always becoming a central issue, this is due to the ability to manage the business strategy in a sustainable manner. The fund transacted in micro financing industry is small in term of quantity, therefore it also generates small profit to both parties MFI and ME, it may not be profitable in the eye of financial institution such as bank or Microfinance institution such as Baitul Mal wa Tamwil, moreover the financing risk is always high because some of the financing given without proper risk mitigation could lead into financial failure. The above reasons have influenced most of the MFIs’s decision to abstain from providing equity-based financing, where the concept very much suitable and workable to bring out the groups of MEs from poverty list in comparison to debt-based financing. Equity-based financing require bigger commitment and intervention from MFI in business in term of coaching, training and managing cash flow of the business. Islamic equity-based financing is about profit and loss sharing (PLS) financing. Where both parties have to bear financial consequences in the event of business failure. The failure in business would cause non-performing financing (NPF) to the financial institution and could effect the financial position for that particular year of report. The continuous NPF to the MFI can risk the company future plan. Thus, this study aimed to explore the mechanism of risk mitigation for equity-based financing which can be adopted by Islamic microfinance institutions around the would. The mechanism used to suggest in area of governance, selection of entreprenuer, financing arrangement, payment system and business business sectors. The study applied content analysis to collect the history data of equity-based financing as offered by BMT and MFIs in Indonesia, the data informed researcher on the success and failure story, the study also applied structured interview with managers who are responsible on risk mitigation. The study found that BMT and MFIs in Indonesia are well-organized, the governance and selection of entreprenuer are palying significant role while the payment system which includes the collatoral against any negligence posits an effective way in mircofinance mitigation model.

PERAN LEMBAGA KEUANGAN MIKRO BAITUL MAAL WAT TAMWIL (BMT) TERHADAP PENGEMBANGAN USAHA PEDAGANG

2020 ◽  
Vol 2 (2) ◽  
pp. 12
Author(s):  
Nur Aidil ◽  
M. Thahir Maloko ◽  
A. Intan Cahyani
Keyword(s):  
Data Management ◽  
Field Research ◽  
Research Field ◽  
Microfinance Institutions ◽  
Validity Testing ◽  
Microfinance Institution ◽  
Data Validity ◽  
Management Techniques ◽  
The Impact

AbstrakPenelitian ini membahas peran lembaga keungan mikro baitul maal wa tamwil (BMT) terhadap pengembangan usaha pedagang, dan dampak yang ditimbulkan oleh lembaga keuangan BMT dalam pengembangan usaha pedagang.Jenis penelitian ini adalah penelitian lapangan (field research) menggunakan metode kualitatif dimana dilakukan dengan pendekatan teologis normatif, sosiologis dan fenomenologi dengan sumber data dari  BMT fastabiqul Khorat, selanjutnya metode pengumpulan data yang dilakukan adalah observasi, wawancara, dokumentasi, kemudian tekhnik pengelolaan data dilakukan melalui beberapa tahapan diantaranya: reduksi data, melakukan pengelolaan data dan pengujian keabsahan data. Hasil penelitian tersebut menunjukkan bahwa Baitul maal wat tamwil Fastabiqul Khoirat (BMT) sebagai lembaga keuangan mikro mempunyai peran mengurangi praktek riba, serta mensejahterahkan masyarakat kecil. Sedangkan dampak  yang diberikan BMT terhadap pengembangan usaha pedagang yakni BMT memberikan kontribusi dalam pengembangan usaha pedagang karena BMT melakukan pembiayaan kepada pedagang sehingga dapat mendorong pertumbuhan ekonomi pedagang.Kata Kunci : Baitul Mal Wa Tanwil, Pedagang, Pembiayaan Mikro. AbstractThis thesis discusses the role of microfinance institutions baitul maal wa tamwil (BMT) in the development of merchant businesses, and the impact caused by BMT financial institutions in the development of merchant businesses. This type of research is field research (field research) using qualitative methods which is carried out with a theological approach. normative, sociological and phenomenological with data sources from BMT fastabiqul Khorat, then the data collection methods used are observation, interviews, documentation, then data management techniques are carried out through several stages including: data reduction, data management and data validity testing. The results of this study indicate that Baitul maal wat tamwil Fastabiqul Khoirat (BMT) as a microfinance institution has a role in reducing the practice of usury, and in prospering the poor. Meanwhile, the impact given by BMT on the development of merchant business, namely BMT contributes to the development of merchant business because BMT provides financing to traders so that it can encourage economic growth of traders.Keywords: Baitul Mal Wa Tanwil, Micro Financing, Trader.

Integrating Zakat and Microfinance

2020 ◽  
pp. 277-289
Author(s):  
Mohammad Bintang Pamuncak ◽  
Bayu Taufiq Possumah ◽  
Zairihan Abdul Halim
Keyword(s):  
Content Analysis ◽  
Conceptual Framework ◽  
Structured Interview ◽  
Qualitative Approach ◽  
Clear Definition ◽  
Financial Intermediary ◽  
Microfinance Institution ◽  
Islamic Microfinance ◽  
Potential Strategy

This chapter bridges the concepts of microfinance and Zakat, and proposes a conceptual framework as a potential strategy to solve poverty. This study employs qualitative approach. Specifically, it performs content analysis on related manuscripts, and conducts a structured interview with selected stakeholders of Zakat institutions. The study proposes that Zakat institution must have a clear definition about which Zakat fund portion should be used for the program. Authors propose the use of amil for the program and it must be given by amil voluntarily and there must be clear mechanism on which deserving categories (asnaf/mustahik) should be prioritised to be the part of the program. In practice, amil can be considered as investors (where Zakat institution distributes and becomes Islamic microfinance institution) or financial intermediary (where the amil distributes and becomes Islamic microfinance institution appointed by the authority).

scholarly journals Financial and Social Performances of Islamic Microfinance Service Provider With Mobile Banking

2019 ◽  
Vol 10 (5) ◽  
pp. 181
Author(s):  
Afifa Malina Amran ◽  
Intan Salwani Mohamed ◽  
Sharifah Norzehan Syed Yusuf ◽  
Nabilah Rozzani
Keyword(s):  
Social Performance ◽  
Accounting Information ◽  
Standard Of Living ◽  
Mobile Banking ◽  
Microfinance Institutions ◽  
Accounting Information System ◽  
Qualitative Approaches ◽  
Islamic Financial Institutions ◽  
Microfinance Institution ◽  
Islamic Microfinance

In Malaysia, Islamic microfinance institutions (IMFIs) are part of Islamic financial institutions and have been established to provide Islamic microfinance products (interest free loans). Their aim is to promote trade activities among Islamic microfinance recipients in improving their standard of living. Information and data gathered can be used as evidence to prove that Islamic microfinance has traits that provide a support system for the poorest of the poor. This study hence intends to investigate the application of technology by Islamic microfinance institutions within a context of its accounting information system through the usage of mobile banking. This study is conducted using qualitative approaches via interviews to obtain in depth understanding of mobile banking usage at an Islamic microfinance institution. Financial data, as well as data on the total number of loan recipients (sahabats) is referred by the study in investigating another aspect of social performance in terms of vicegerency and accountability of the IMFI. Extensive application of vicegerency concept in explaining the findings is parallel to Shari'ah Foundation for Accountants in outlining characteristics of Muslim accountants in preventing them from doing prohibited actions.

scholarly journals Consumer Knowledge and Decisions Becoming Customer Islamic Microfinance Institutions

2020 ◽  
Vol 4 (1) ◽  
pp. 70-92
Author(s):  
Intan Qurratulaini
Keyword(s):  
Financial Institutions ◽  
Research Method ◽  
Profit Sharing ◽  
Islamic Banking ◽  
Consumer Knowledge ◽  
Microfinance Institutions ◽  
Calculation Results ◽  
Microfinance Institution ◽  
Islamic Microfinance ◽  
The Many

This study aims to determine the effect of consumer knowledge about Islamic banking on the decision to become a customer at a Sharia Microfinance Institution (LKMS). A research method is a quantitative approach, where data is obtained through questionnaires (questionnaires), interviews, and documentation. After the data was obtained, the researcher analyzed it using regression analysis. Partial calculation results show that consumer knowledge about Islamic banking influences the decision to become a customer. One of the toughest challenges that many LKMS are now facing is the many accusations that LKMS is just conventional financial institutions with a sharia label added. LKMS consumers, becoming customers only want to secure their money or because of the profit-sharing offered by LKMS so that they can facilitate their economic path, besides that, they are also interested in the Islamic label or sharia system developed by the LKMS but in detail, they do not understand the process of implementing the sharia, but whether One's knowledge of sharia in the LKMS is a factor in the decision to become an interesting customer for further investigation.

scholarly journals AN EMPIRICAL STUDY OF ISLAMIC MICROFINANCE PERFORMANCE FOR POOR FAMILY: MAQASHID AL-SHARIA PERSPECTIVE

2020 ◽  
Vol 3 (01) ◽  
pp. 46
Author(s):  
Aas Nurasyiah
Keyword(s):  
Performance Measurement ◽  
Quantitative Research ◽  
Research Result ◽  
Microfinance Institutions ◽  
Family Economy ◽  
The Family ◽  
Microfinance Institution ◽  
Sample Technique ◽  
Islamic Microfinance ◽  
Technical Effort

<p><em>This research motivated by Islamic Microfinance performance measurement which still adopting on the performance measurement of microfinance in general that limited to the measurement of material. Therefore, efforts urgently needed to introduce more holistic measurement in assessing the performance of Islamic Microfinance based on tawheed principle. Thus, this study aims to measure the performance of Islamic Microfinance institutions based on Maqashid Al-Sharia. This research method uses quantitative approach with descriptive quantitative research design, which measures variables based on certain indicators. The location of the research is KOPMU-DT as one of the Islamic Microfinance institutions located in Bandung. The population of the study was the members KOPMU-DT wide-spread, among thousand people, but the withdrawal sample technique uses non-probability sampling with a sample of 100 members, based on the criteria that have been determined. Based on the research result, generally the members of KOPMU-DT increased living standards of the family economy and the performance of running micro-businesses. In Maqashid Al-Sharia perspective, the members experience a change in the principles of Ad-Din Al-Aql, A-nafs, An-Nasl and Al-Maal. However, among five principles, Al-Aql increases lower than other principles. In the future, to improve the performance of Islamic Microfinance, especially in KOPMU-DT, needs technical effort / business of accompaniment improvement to develop entrepreneurship from members. In addition, needs to give appreciation to the consistent members and disciplined in order to refund to add its financing to stimulate the operating business, without losing spiritual accompaniment to strengthen the achievement of Maqashid Al-Sharia of the empowerment members of Islamic Microfinance institution.</em></p><strong><em>Keywords: </em></strong><em>Islamic Microfinance, Maqashid Al-Sharia, Performance</em>

scholarly journals Islamic Micro Finance Melati: Sebuah Upaya Penguatan Permodalan bagi Pedagang Pasar Tradisional

2017 ◽  
Vol 8 (1) ◽  
pp. 27
Author(s):  
Sabirin Sabirin ◽  
Dini Ayuning Sukimin
Keyword(s):  
Management Strategy ◽  
Microfinance Institutions ◽  
Working Capital ◽  
Traditional Markets ◽  
Traditional Market ◽  
Microfinance Institution ◽  
Capital Financing ◽  
Islamic Microfinance ◽  
The Right ◽  
Loan Shark

<p class="IABSSS"><span lang="NL">The purpose of t</span>his research is to examines Islamic Micro Finance <em>Melati</em> <em>(</em><em><span lang="NL">Melawan </span></em><span lang="NL">Rentenir</span><em>)</em> in helping traders in traditional markets to avoid the practice of loan sharks. This article uses descriptive explorative approach by analyzing the right strategy in the management of islamic micro finance institution targeting especially for traders in traditional market in Indonesia. From this study obtained the following conclusions. <em>First</em>, the design of Islamic Micro Finance <em>Melati</em> in order to create an easy Islamic microfinance institution in providing capital financing is very suitable in overcoming the practice of loan shark. <em>Second</em>, working capital is channeled using a system of cooperation whereby the trader is obliged to return the principal and profit share of the profit. <em>Third</em>, the organizational structure and management patterns that are not complicated will make Islamic Micro Finance <em>Melati</em> is easy to realize. <em>Fourth</em>, the existence of Islamic Micro Finance <em>Melati</em> can be an example for other Islamic microfinance institutions in managing management strategy so that sharia microfinance institution can be the main choice for micro business actors.</p><p class="IABSSS"><span lang="NL">Tujuan penelitian ini untuk m</span><span lang="NL">engkaji <em>Islamic Micro Finance </em>Melati<em> </em>(Melawan Rentenir)<em> </em>dalam membantu pedagang di pasar tradisional dari praktik rentenir. </span>P<span lang="NL">enelitian </span>ini <span lang="NL">menggunakan pendekatan eksploratif deskriptif dengan menganalisis strategi yang tepat dalam pengelolaan lembaga keuangan mikro syariah yang menyasar para pedagang di pasar tradisional di Indonesia.</span><span lang="NL">Dari penelitian ini diperoleh kesimpulan: <em>Pertama</em>, desain <em>Islamic Micro Finance </em>Melati<em> </em></span>dalam rangka <span lang="NL">menciptakan lembaga keuangan mikro syariah yang mudah dalam memberikan pembiayaan permodalan sangat cocok dalam mengatasi praktik rentenir. <em>Kedua</em>, modal kerja yang disalurkan menggunakan sistem kerjasama dimana pedagang wajib mengembalian pokok dan bagi hasil dari keuntungan. <em>Ketiga</em>, struktur organisasi dan pola pengelolaan yang tidak rumit akan membuat <em>Islamic Micro Finance </em>Melati ini mudah untuk direalisasikan. <em>Keempat</em>, keberadaan <em>Islamic Micro Finance </em>Melati dapat menjadi contoh bagi lembaga keuangan mikro syariah lainnya dalam pengelolaan strategi pengelolaan sehingga lembaga keuangan mikro syariah dapat menjadi pilihan utama bagi pelaku usaha mikro</span><span lang="NL">.</span></p>

scholarly journals Business Model of Islamic Microfinance Institution: Indonesia Case

2017 ◽  
Vol 2 (1) ◽  
pp. 22-30
Author(s):  
Imron Mawardi ◽  
Tika Widiastuti ◽  
Ari Prasetyo
Keyword(s):  
Business Model ◽  
Business Models ◽  
Jel Classification ◽  
Microfinance Institutions ◽  
Social Functions ◽  
Social Entity ◽  
Organizational Orientation ◽  
Microfinance Institution ◽  
Islamic Microfinance

Objective - Islamic Microfinance Institutions (IMFIs) grown very rapidly in the last 10 years in Indonesia. On 2015, the number of IMFIs' reached more than 5,000. As a business and social entity, IMFIs has various business models, the way in providing services and manages the business to achieve its goals. This study aims to determine the business models of IMFIs. Methodology/Technique - This study uses qualitative approach by case study technique of Robert K. Yin. Subjects of this study are IMFIs in Indonesia that selected purposively with managers as a key informant. Findings - The result is the business model of IMFI is determined by eight elements, namely: organizational orientation, business and social functions, the source of capital and allocation, investors and customers, financing usage, types of contract, allocation technique, and membership. Novelty - The elements that determine IMFI, will form a business model of IMFI which determine how IMFI runs its business activities to achieve organization objective. Type of Paper Review Keywords: Islamic Microfinance Institution; Business Model; Social Function. JEL Classification: G21, L22.

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