Building Islamic Ethics into Development: Exploring the Role and Limitations of “Islamic” Microfinance in Poverty Alleviation—An Indonesian Case Study

Farrar, Salim; Uddin, Tanvir Ahmed

doi:10.1515/ldr-2020-0047

Cited by 3 publications

(2 citation statements)

References 28 publications

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“…The higher level at the state and regional level includes issuing Islamic bonds (sukuk) to build infrastructure and promote social and economic development (Farrar & Uddin, 2020). Four schemes for house funding follow sharia rules (Bachtiar, 2019):…”

Section: Quadrant III (Attributes To Maintain)mentioning

confidence: 99%

Designing Sharia Property Business Model for Real Estate Segment in PT Wika Realty

Rahmat,

Syauqi,

Teguh

2023

ijbe

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PT WIKA Realty engages property business in Indonesia, which has two core businesses, hotel and non-hotel. Real estate (non-hotel) revenue was only 25,24% of total 2021 revenues. Meanwhile, it has 67,59% of its assets from the whole company's assets. In contrast, the sharia property business grew exponentially during the pandemic. In Islam, Maqashid sharia purposes to spread goodness to people, so business etic is not only to gain profit. Therefore, this research aims to know the real estate business segment's performance, identify the advantages of developing a sharia property business model, and formulate a strategy for a sharia property business model in the real estate business segment of PT WIKA Realty. This research also benchmarked to Asosiasi Developer Properti Syariah and Warees Pte Ltd to observe the sharia property business's external situation after five years running. Business Model Canvas (BMC), Importance Performance Analysis (IPA) and Porter's Five Forces are methods to determine corporate strategies. Seven experts with ten years of experience from PT WIKA Realty were questioned for importance and performance satisfaction; the index is 78,7%. There are three essential elements to improve such as Customer Segment, Key Resources and Customer Relationship with improvements: (1) Targeting Business to Beneficiaries as a new segment market target, (2) Enhancing employee competencies in sharia economy and business, (3) Committed to implementing sharia rules in PPU Realty syariah, (4) Cooperating with Lembaga Keuangan Syariah, (5) Developing PPU Realty Syariah and determining sharia property project, (6) Implementing Customer Relationship Management application.

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Section: Quadrant III (Attributes To Maintain)mentioning

confidence: 99%

Designing Sharia Property Business Model for Real Estate Segment in PT Wika Realty

Rahmat,

Syauqi,

Teguh

2023

ijbe

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“…However, in a broader context, there are problems related to justice, sustainability and sharia compliance. Therefore, research on the role of Islamic microfinance in alleviating poverty and developing entrepreneurship is very important (Farrar, 2020).…”

Section: Introductionmentioning

confidence: 99%

Islamic Microfinance: Addressing Poverty Alleviation and Entrepreneurship Development

Hotman,

Hilman,

Ahmad

2024

COUNT

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This research investigates the role of Islamic microfinance in poverty alleviation and entrepreneurship development. Using a systematic literature review approach, this research analyzes the relationship between types of financing, access to Islamic financial services, government policies, and the level of entrepreneurship with household income and the development of micro and small businesses. The findings show that Islamic microfinance can be an effective instrument in strengthening the economic base of underprivileged communities, especially through the integration of Islamic principles in the financial system.

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Comparative analysis of the financial impact of the CSP in the Islamic, conventional and social banking model

De Zuhrah,

Iglesia

2024

JIES

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Objective; This research explores the financial implications of Corporate Social Performance (CSP) based on Islamic, Conventional, and Social Banking models. Through the lens of this Study, which explores the relationship between CSP and financial performance, this paper highlights the heterogeneity evident amongst these banking models: in terms of the way they integrate CSP; and in terms of the financial benefits they gain from CSP initiatives.Methods; A regression between the Islamic, Conventional and Social Banking institutions using the Generalized method of moments (GMM). Methodology When it comes to the analysis, the methodology employed financial data retrieved from 120 banks, with a total number of 819 observations spanning over a certain time interval. The model risk assessment of CSP impact on financial performance based on ROAA, Size, CAR, and other financial valuesResults; CSP has a positive effect on financial performance in both the Islamic and Conventional Banking models with the existence of a significant relation for models like Return on Assets (ROAA) financial performance. Although the results for the influence of CSP on Islamic and Conventional bank models seem more pronounced, this impact appears less significant in Social Banking models. Whereas it has been observed that in some of the results CSP, with some banking-specific variables (IBSP, SBSP, and CBSP), plays a significant role in the improvement of their financial indicators; therefore, it is proved that CSP is a crucial strategy for them and contributes significantly to financial prosperity.Novelty; This study offers new comparative data on the financial consequences for CSP across differing banking models, substantiating how each adapts to and gains from these socially conscious undertakings. This provides insights that goes beyond general CSP analyses as it embeds the analysis in the particular contexts of Islamic, Conventional and Social Banking unlike prior studies.Research Implications; The findings imply that banking institutions, including both Islamic and Conventional banks, should give more attention to CSP initiatives to improve their financial performance. Lawmakers and financial regulators might promote an environment conducive to socially responsible banking. Future studies can investigate long-term impacts of CSP, including interactions with financial aspects across several industries.

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Building Islamic Ethics into Development: Exploring the Role and Limitations of “Islamic” Microfinance in Poverty Alleviation—An Indonesian Case Study

Cited by 3 publications

References 28 publications

Designing Sharia Property Business Model for Real Estate Segment in PT Wika Realty

Designing Sharia Property Business Model for Real Estate Segment in PT Wika Realty

Islamic Microfinance: Addressing Poverty Alleviation and Entrepreneurship Development

Comparative analysis of the financial impact of the CSP in the Islamic, conventional and social banking model

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