Performance of Islamic Microfinance Banks: The Case of a Developing Country

Akbar, Taufik; Nabiha, A.K. Siti

doi:10.18502/kss.v3i22.5056

Cited by 2 publications

(2 citation statements)

References 6 publications

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“…The Financial Services Authority (OJK) plays a crucial role in overseeing and regulating the financial services sector within a country (Akbar & Nabiha, 2019). Its responsibilities encompass protecting consumer interests, ensuring financial system stability, and promoting the development of a healthy, inclusive, and sustainable financial services sector.…”

Section: Financial Services Authoritymentioning

confidence: 99%

Implementation of Sharia-Based Financial System by Ojk: Promoting a Sustainable and Inclusive Economy

Hibatullah,

Ramadhan,

Panggiarti

2023

CASHFLOW

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The OJK plays a pivotal role in developing financial products that adhere to Shariah principles, as well as promoting financial inclusion through the expansion of microfinance and the enhancement of the infrastructure and ecosystem of the Shariah financial sector. Furthermore, the OJK actively engages in fostering Shariah financial literacy within the community and collaborates with various stakeholders to improve accessibility to Shariah finance. This article aims to examine the implementation of a Shariah-based financial system by the Financial Services Authority (OJK) with the aim of fostering sustainable and inclusive economic growth. The research methodology employed in this article is qualitative descriptive research, which elucidates the Shariah financial system implemented by the OJK to drive sustainable and inclusive economics. This article underscores the importance of sustainable economic growth and emphasizes the necessity of cooperation between the government, private sector, civil society, and international institutions to achieve these objectives. The OJK assumes a critical role in overseeing and ensuring the compliance of financial institutions with Shariah principles, while also advocating for awareness and understanding of Shariah finance and its associated benefits through educational and training programs. This article highlights the significance of enhancing awareness and understanding of the Shariah-based financial system among Indonesian society, and proposes measures that can be undertaken by the OJK to promote this objective. It underscores the importance of public education and awareness programs aimed at increasing knowledge and appreciation of Shariah finance, thereby contributing to a more sustainable and inclusive economic landscape in Indonesia.

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Section: Financial Services Authoritymentioning

confidence: 99%

Implementation of Sharia-Based Financial System by Ojk: Promoting a Sustainable and Inclusive Economy

Hibatullah,

Ramadhan,

Panggiarti

2023

CASHFLOW

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“…BPRS were established for such purposes in Indonesia. They represent a formal microfinance institution which operates based on Sharīʿah principles and provides credit to poor, low-income groups and MSMEs in rural and urban areas (Bank Indonesia, 2008; Nugroho et al , 2018; Akbar and Siti-Nabiha, 2019).…”

Section: Introductionmentioning

confidence: 99%

Objectives and measures of performance of Islamic microfinance banks in Indonesia: the stakeholders' perspectives

Akbar

Khalid

2021

IJIF

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PurposeThis study investigates both internal and external stakeholders' views on the objectives and measures of performance of Indonesian Islamic microfinance banks (IMFBs).Design/methodology/approachThis study uses a qualitative approach. In-depth interviews were conducted with a wide range of internal and external stakeholders of IMFBs in Indonesia. The primary stakeholders interviewed comprised the board of directors of IMFBs located in several provinces in Indonesia, including rural and urban areas. The external stakeholders were the regulators/supervisors, represented by the Indonesian Financial Services Authority and Sharīʿah advisors of the National Sharīʿah Board as well as Muslim scholars. The data were analysed using CAQDAS, a computer-assisted tool for qualitative analysis.FindingsThe objectives of the IMFBs are seen to represent more than profits or economic well-being. Their objectives also comprise spirituality and daʿwah (Islamic propagation). Daʿwah is conducted through the provision of funding and services that are aligned with Sharīʿah (Islamic law), the dissemination of information about Islamic financing, which is based on Islamic values and principles, and the payment of zakat (Islamic alms) and charitable contributions. The measures of performance are considered to be more holistic than those of conventional banks. Profit and growth are deemed important as the means to achieve social well-being objectives.Research limitations/implicationsBetter insights into the objectives and measures of IMFBs could be achieved from interviews with other stakeholder categories, such as customers and the community. This could be the focus of future research.Originality/valueThis study added a new discussion to the limited empirical literature on IMFBs by investigating the views of stakeholders on the objectives and performance of IMFBs in Indonesia.

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Performance of Islamic Microfinance Banks: The Case of a Developing Country

Cited by 2 publications

References 6 publications

Implementation of Sharia-Based Financial System by Ojk: Promoting a Sustainable and Inclusive Economy

Implementation of Sharia-Based Financial System by Ojk: Promoting a Sustainable and Inclusive Economy

Objectives and measures of performance of Islamic microfinance banks in Indonesia: the stakeholders' perspectives

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