Islamic Microfinance and Poverty Alleviation Program: Preliminary Research Findings From Indonesia

Abstract

-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. Keywords: Islamic microfinance, poverty alleviation, community development, local organization Sen (1982;1999) ABSTRAK -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.

Mapping on Islamic Microfinance Research: Lesson Learn from Indonesia and Turkey

“…Islamic microfinance has become an increasingly important finance and economic development field worldwide (Al-Awlaqi & Aamer, 2019;Muhammad, 2008;Suzuki et al, 2016). In this context, Indonesia and Turkey have played a key role in promoting and developing Islamic microfinance.…”

Islamic Village Development Management: A Systematic Literature Review

“…Muslim society and government should working together. Suzuki, et al (2016) propose the strategic collaboration of Islamic microfinance, the Mosque (Masjid), Islamic charity institutions (zakat & waqf organizations), and local organization to ending poverty in Indonesia.…”

Removing the Cog in the Waqf Wheels: A Policy Formulation for Nigeria

“…Looking at the MINT countries, Nigeria ties with Indonesia as the firsts amongst the four countries (Ibrahim & Ilyas, 2016). Although an average of 44% of the people in both countries are considered charitable, individual statistics reveal that while 66%, 30%, and 36% of Nigerians helped strangers, donated money, and volunteered time, respectively; 40%, 63%, and 30% respectively did the same in Indonesia (Ibrahim, 2014;Suzuki, Pramono, & Rufidah, 2016). Thus, both countries have their strong points.…”