scholarly journals ISLAMIC MICROFINANCE AND POVERTY ALLEVIATION PROGRAM: PRELIMINARY RESEARCH FINDINGS FROM INDONESIA

2016 ◽  
Vol 5 (1) ◽  
Author(s):  
Yasushi Suzuki ◽  
Sigit Pramono ◽  
Rufidah Rufidah
Keyword(s):  
Community Development ◽  
Capacity Building ◽  
Poverty Alleviation ◽  
Strategic Alliance ◽  
Development Program ◽  
Economic Problem ◽  
Strategic Partnership ◽  
The Poor ◽  
Majority Population ◽  
Islamic Microfinance

Poverty should be defined, measured, and scrutinized its root causes from a multi-dimension perspectives. Therefore, in designing and implementation of poverty alleviation program, it should consider economic factors, social and political contexts surrounding the poor. Sen (1982; 1999) views poverty as a multifaceted world and ethical dimension essentially should be placed underpinning it as a vital economic problem. The paper takes the stance that the poor themselves have potential capacity to alleviate their condition in resolving poverty trap. Community development program is one of the strategies to deal with the poverty problem. Islamic microfinance can play an important role in combating poverty dilemma especially in Muslim majority population communities. Through the approach proposed by Bigg and Satterthwaite (2005) with strengthening local organizations and community development programs, Islamic microfinance should engage a strategic partnership with the Masjid and Islamic charity institutions (zakat and waqf organization). This strategic alliance will result more integrated programs and also capacity building of the institutions involved. This paper aims to contribute a grass root model in the purpose of combating poverty in the framework of Islamic economic system. =========================================== Kemiskinan harus didefinisikan, diukur, dan diteliti akar penyebabnya dari berbagai perspektif. Oleh karena itu, dalam merancang dan mengimplementasikan program pengentasan kemiskinan, faktor-faktor ekonomi, konteks sosial dan politik yang mengelilingi kemiskinan juga harus dipertimbangkan. Sen (1982; 1999) memandang kemiskinan sebagai sebuah dunia yang kompleks, dan dimensi dasar etika harus ditempatkan sebagai sebuah masalah ekonomi yang vital. Peneliti sendiri dalam hal ini berpandangan bahwa orang-orang miskin pada dasarnya punya kapasitas yang memadai untuk keluar dari garis kemiskinan. Salah satunya adalah dengan program pengembangan masyarakat yang merupakan satu strategi dalam pengentasan kemiskinan. Keuangan mikro syariah dapat memainkan peran penting dalam memerangi dilema kemiskinan, khususnya di daerah-daerah yang mayoritas penduduknya Muslim. Pendekatan yang diusulkan oleh Bigg dan Satterthwaite (2005) adalah dengan cara penguatan organisasi lokal dan program pengembangan masyarakat dimana keuangan mikro syariah harus terlibat dalam kemitraan-kemitraan strategis dengan masjid-masjid dan lembaga-lembaga sosial lainnya (seperti lembaga zakat dan wakaf). Aliansi strategis ini akan menghasilkan program-program yang lebih terintegrasi dan juga ada penguatan capacity building dari lembaga-lembaga yang terlibat. Makalah ini bertujuan untuk berkontribusi dalam memberikan model akar rumput dalam hal pengentasan kemiskinan dalam kerangka sistem ekonomi Islam.

The Role of Islamic Microfinance Approach for Community Development

2021 ◽  
pp. 1-10
Author(s):  
Malik Shahzad Shabbir ◽  
Keyword(s):  
Community Development ◽  
Development Program ◽  
Primary Data ◽  
Structured Interviews ◽  
Development Framework ◽  
Core Components ◽  
Effective Community ◽  
Islamic Microfinance ◽  
Development Approach ◽  
Management Staff

The fields of zakat-based microfinance and community development are not often placed under the same theoretical lens that both aim to empower disadvantaged people. This study investigates the experiences of borrowers in the implementation of zakat-based microfinance and analyses the different driving factors they applied in their choice of the zakat-based microfinance of Da’arut Tauhid Peduli in Bandung, Indonesia. It applies a community development framework, based on the five characteristics, to explore this Islamic microfinance approach as an effective community development program, which has a religious dimension. Primary data were obtained from semi-structured interviews with the borrowers along with participation observation at a weekly majelis meeting, and these were triangulated with information cross-checked with management staff of the institution. The findings demonstrate three out of five characteristics of zakat-based microfinance approach as an effective community development program. They include characteristics in constantly maintaining power relation between borrowers and the institution, increasing capability and ability of borrowers to be more independent and empowered, and long-term duration of the program and sustainability. The findings showed that spiritual factors appear to have been an additional driving force on top of economic and non-economic factors for most borrowers choosing this particular program. With respect to zakat-based microfinance as a community development approach, practitioners need to develop longer-term strategic planning that takes into account the principles and core components of both zakat and community development; this would facilitate both the economical and spiritual empowerment of recipients to widen the scope of change, as well as expand benefits from their families to the wider community

scholarly journals Alleviating Poverty Through Islamic Microfinance: Factors and Measures of Financial Performance, and Roles of Islamic Values and Financial Policies

2019 ◽  
pp. 1266-1273
Author(s):  
Adhitya Ginanjar ◽  
Salina Kassim
Keyword(s):  
Financial Services ◽  
Poverty Alleviation ◽  
Financial Education ◽  
Financial Inclusion ◽  
Microfinance Institutions ◽  
Financial Policies ◽  
The Poor ◽  
Depth Interview ◽  
Rich Information ◽  
Islamic Microfinance

Indonesia has a strong presence of microfinance sector with the number of Islamic Microfinance Institutions (IMFIs) estimated to be around 5,000 currently. Microfinance is an effective tool in alleviating poverty in Indonesia due to the limited access to financial services by the poor who accounted for approximately 96 million Indonesians (or 37% of the total population), living on less than USD 1.90 a day. In the absence of collateral and steady income, the poor are considered too risky to be given credit facilities by the formal financial services providers and living in remote areas has also limited their access to formal financial services. This study aims to examine the poverty alleviation efforts from the perspective of the IMFIs in view of their direct involvement in the process and having rich information about financial issues facing the borrowers. The managers also understand about financial inclusion agenda as well as financial guidelines and regulations issued by the relevant authorities. A total of 34 managers of Baitulmaal Wa Tamwil (BMTs), which registered under the Sharia Cooperative Centre (INKOPSYAH) are taken as respondents from the Jakarta, Bogor, Depok, Tangerang and Bekasi (JABODETABEK) areas. The first instrument was a survey questionnaire, and the second one was an in-depth interview to outline data related to the model design. The findings of this research are expected to contribute to better decision-making for the BMTs to further enhance its role in alleviating poverty. The findings also elaborate several dimensions to improving financial inclusion among the poor including providing financial services, implementing Islamic principles, significant policies, community-based framework concept and training financial education. This research highlights the need for a variety of strategies to warrant success of poverty alleviation efforts by BMT.

scholarly journals Strategi pemberdayaan berbasis vocational skill pada perempuan miskin di perbatasan Entikong (Indonesia-Malaysia)

2020 ◽  
Vol 15 (1) ◽  
pp. 1-18
Author(s):  
Nikodemus Niko
Keyword(s):  
Community Development ◽  
Rural Women ◽  
Poverty Alleviation ◽  
Development Program ◽  
Boundary Region ◽  
Accurate Information ◽  
Ethnographic Approach ◽  
Women's Lives ◽  
Border Areas ◽  
Depth Interviews

This Paper describes the poverty of women at the border of Entikong. The reality of poverty in rural women (border areas) today is still in severe situations. There has been no significance of the welfare development of the community, that in fact there are still many poor women's lives in the country boundary region. It is concluded that the community development program on the border is still loaded with interest and is vulnerable to being politicized by the elites, as a result the development of society is not up to the target. Method of research uses the feminist ethnographic approach as a stand point that research about women comes from a female's own perspective. The data collection techniques are observations, in-depth interviews, documentation studies, and live-in with the community to obtain precise and accurate information. The poverty of women on the border is due to women's limited access to resources. Then, on this paper the empowerment-based vocational skills become a strategic bid in the poverty-alleviation of women at the border.

The key players’ perception on the role of Islamic microfinance in poverty alleviation

2015 ◽  
Vol 6 (2) ◽  
pp. 244-267 ◽  
Author(s):  
Kausar Abbas ◽  
Nasim Shirazi
Keyword(s):  
Low Income ◽  
Poverty Alleviation ◽  
Business Community ◽  
Islamic Banking ◽  
Top Management ◽  
Islamic Banks ◽  
Content Type ◽  
The Poor ◽  
Key Players ◽  
Islamic Microfinance

Purpose – This study aims to know the present structure and move of the Islamic banks of Pakistan as well as current issues and challenges for Islamic microfinance. However, this is based on perceptions of the Islamic bankers, regulators and micro-entrepreneurs and petty traders, as they are the key players in the credit market. Design/methodology/approach – The study gathered relevant information through conducting field survey. Two questionnaires were designed for the survey. One questionnaire was administered to survey 270 micro-entrepreneurs and petty traders in three major cities of Pakistan. Another survey deals with the perceptions of Islamic bankers. In total, 100 people from middle and top management were surveyed from five full-fledged Islamic banks of Pakistan. The SPSS software, version 16, was used for questionnaire reliability and descriptive analysis to analyse the data. Findings – In general, the study found the strong opinions of the respondents speak in favour of Islamic microfinance under a system of profit and loss sharing. Conversely, the majority of the clients also feel that Islamic banks do not encourage lower-income micro-entrepreneurs. In addition, the study found that Islamic microfinance is constrained by lack of knowledge, experience and professionalism of the supporting staff; however, Islamic bankers have shown great consensus that Islamic banks should offer Islamic microfinance products and instruments to respond to the needs of the poor for poverty alleviation. Research limitations/implications – The first limitation of the study is the meagre interest of micro-entrepreneurs and petty traders to participate in the survey. The second limitation of this work concerns the extremely busy schedule of top management and administrative impediment to approach and fix an appointment. Despite these limitations, the findings of this study provide insights to Islamic banks in diversifying their products by offering Islamic microfinance to the low-income entrepreneurs but with proper guidelines and policies. Practical implications – There is a need to educate the community towards the merits of Islamic banking system by developing a good information system using good visuals and professionally presented seminars, banners and arranging regular sessions with the business community. The growth and development of Islamic banking in the country largely depend on its customers’ enhanced knowledge and awareness about its products and services. Social implications – It is the responsibility of the community as well as of government to change the mindset of the poor that banks are meant to serve the interest of everybody, regardless of social, economic and political status. Originality/value – Theoretically, this study contributes to the existing body of knowledge in the area of Islamic microfinance by examining the perceptions of Islamic bankers and micro-entrepreneurs. This can help Islamic banks of Pakistan to design and formulate new administrative as well as operational procedures to serve the interest of the poor with commitment towards Islamic values.

scholarly journals CAN ISLAMIC MICROFINANCE ALLEVIATES POVERTY IN INDONESIA? AN INVESTIGATION FROM THE PERSPECTIVE OF THE MICROFINANCE INSTITUTIONS

2020 ◽  
Vol 6 (1) ◽  
Author(s):  
Adhitya Ginanjar ◽  
Salina Kassim
Keyword(s):  
Decision Making ◽  
Poverty Alleviation ◽  
Financial Inclusion ◽  
Survey Questionnaire ◽  
Model Design ◽  
Microfinance Institutions ◽  
The Poor ◽  
Depth Interview ◽  
Islamic Microfinance

This study examines the poverty alleviation efforts undertaken by the Islamic microfinance institutions (IMFIs) in Indonesia. We focused on the role played by the IMFIs in view of their direct involvements in the process of dealing with the borrowers, and their better understanding about the financial inclusion agenda as well as the financial guidelines and regulations issued by the relevant authorities. In methodology, a total of 34 managers of Baitul Maal wat Tamwil (BMTs) were taken as respondents from the Jakarta, Bogor, Depok, Tangerang and Bekasi (JABODETABEK) areas. A two-step approach was adopted in arriving at enriching findings: first, a survey questionnaire was distributed to the respondents, and subsequently, an in-depth interview was conducted to outline data related to the model design. The findings of this study highlight specific dimensions to improve financial inclusion among the poor. Apart from providing important inputs for better decision-making for the BMTs to further enhance its role in poverty alleviation, this study suggests a variety of strategies to warrant success of poverty alleviation efforts by BMT.

scholarly journals Community development through Islamic microfinance approach: The experience of Daarut Tauhid Peduli Bandung, Indonesia

2020 ◽  
Vol 5 (2) ◽  
pp. 108-122
Author(s):  
Ela Nurhayati ◽  
Agus Ahmad Safei ◽  
Aya Ono
Keyword(s):  
Community Development ◽  
Participant Observation ◽  
Development Program ◽  
Primary Data ◽  
Structured Interviews ◽  
Development Framework ◽  
Effective Community ◽  
Islamic Microfinance ◽  
Management Staff

The fields of zakat-based microfinance and community development are not often placed under the same theoretical lens that both aim to empower disadvantaged people. This study investigates the experiences of borrowers in the implementation of zakat-based microfinance and analyses the different driving factors they applied in their choice of the zakat-based microfinance of Daarut Tauhid Peduli in Bandung, Indonesia. It applies a community development framework, based on the five characteristics, to explore this Islamic microfinance approach as an effective community development program, which has a religious dimension. Primary data were obtained from semi-structured interviews with the borrowers along with participant observation at a weekly majelis meeting, and these were triangulated with information cross-checked with the management staff of the institution. The findings demonstrate three out of five characteristics of the zakat-based microfinance approach as an effective community development program. They include characteristics in constantly maintaining power relations between borrowers and the institution, increasing capability and ability of borrowers to be more independent and empowered, and long-term duration of the program and sustainability. The findings showed that spiritual factors appear to have been an additional driving force on top of economic and non-economic factors for most borrowers choosing this particular program.

scholarly journals Implementation of al-Ma’un Theology: The Movement of Muhammadiyah Educated Groups in Poverty Alleviation in Bulutellue Village, Sinjai Regency

INFERENSI ◽  
2021 ◽  
Vol 15 (1) ◽  
pp. 25-50
Author(s):  
Abdul Rahman ◽  
Muhammad Syukur ◽  
Jumadi Jumadi
Keyword(s):  
Higher Education ◽  
Community Development ◽  
Poverty Alleviation ◽  
Social Life ◽  
Qualitative Method ◽  
Ideal Condition ◽  
Mutual Benefit ◽  
Education Group ◽  
The Poor ◽  
The Rich

In the concept of Islamic community development, welfare is an ideal condition for any social life. Efforts to create prosperity in Bulutellue Village also received attention from the Muhammadiyah education group. They invite the community, especially those from the rich to provide sustainable assistance to groups of the poor and orphans as a form of mainstreaming al-Ma’un theology. This study aims to describe the implementation of al-Ma’un theology in alleviating poverty in Bulutellue Village, Sinjai Regency. This study employed a qualitative method. The data were collected through observation and interviews. The results indicate that al-Ma’un theology was introduced by the educated group of Muhammadiyah Higher Education to the community of Bulutellue Village. This doctrine is accepted and implemented by the community in this village even though they are not registered as official members of the Muhammadiyah organization as an effort to make their income a way of gaining happiness and getting blessings from Allah SWT towards mutual benefit.

scholarly journals EFEKTIFITAS DAN MANFAAT PROGRAM PEMBANGUNAN MASYARAKAT MULIA SEJAHTERA (PMMS) (STUDI DI KABUPATEN ACEH UTARA)

INFERENSI ◽  
2013 ◽  
Vol 7 (2) ◽  
pp. 343
Author(s):  
Harjoni Desky
Keyword(s):  
Statistical Analysis ◽  
Community Development ◽  
Descriptive Analysis ◽  
Development Program ◽  
T Test ◽  
Average Income ◽  
Paired Sample ◽  
The Poor ◽  
Initial Target

The purpose of this study was to determine the effectiveness of implementation of Prosperous Community Development Program and Honor (PMMS) for the alleviation of poverty in the district of North Aceh, and the benefits to be achieved from the PMMS program, whether in accordance with the initial target. This study uses statistical analysis of the test T (Paired Sample T Test) and descriptive analysis. The results showed that the poor in the program PMMS average income increased, in other words PMMS program is able to alleviate poverty by raising income per head of the average member of the PMMS. And in general the benefits of this program are in accordance with the PMMS initial target of launching the program PMMS.

scholarly journals The Role of Islamic Microfinance for Poverty Alleviation in Mogadishu, Somalia: An Exploratory Study

2019 ◽  
Vol 6 (4) ◽  
pp. 355-365
Author(s):  
Mohamed Abdi Elmi Xalane ◽  
Marhanum Che Mohd Salleh
Keyword(s):  
Poverty Alleviation ◽  
Poverty Reduction ◽  
Current Practice ◽  
Descriptive Analysis ◽  
Quantitative Methodology ◽  
Microfinance Institutions ◽  
The Poor ◽  
Standards Of Living ◽  
Islamic Microfinance

This research aims to investigate the current practice of Islamic microfinance in Mogadishu, Somalia and to examine the effectiveness of Islamic microfinance institutions in Somalia on poverty reduction. In total, 65 microfinance recipients participated in the survey. This research adopts a quantitative methodology, using a survey and descriptive analysis. Findings show that the current practice of Islamic microfinance in Mogadishu is serving the poor and that these microfinance activities are effective in terms of obtaining loans, enhancement of standards of living and usefulness of the system. Nonetheless, there is a low level of awareness among the locals regarding the availability of Islamic microfinance.

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