Poverty Alleviation Strategies Through Sharia Microfinance Institutions Politico-Economics Study With Tawhidi Approach

Abstract

This research aims to formulate a poverty alleviation strategy in Indonesia by empowering Islamic Microfinance Institutions (IMFI) based on political-economic studies. The Indonesian political-economic system is stipulated in Article 33 of the 1945 Constitution and its Explanatory Paragraph, making the people the center of attention for national economic development. The research uses the Analytic Network Process (ANP) method developed by Saaty. The ANP construction uses a model consisting of 3 main clusters, namely Problems, Solutions, and Strategies. The qualitative-quantitative assessment data is determined based on the Saaty Scale obtained through an in-depth interview of 9 expert respondents and practitioners in Islamic economics and finance. The results show that poverty alleviation strategies need to be carried out through cultural and structural approaches. The cultural approach includes revitalizing the concept of the people's economy as stated in the 1945 Constitution, campaigning for using the domestic product, socialization to increase literacy about waqf and zakat, improving the practices of bureaucratic ethics, and strengthening the values of togetherness and anti-monopoly. The strategy at structural approach is carried out by implementing policies to enhance the role of cooperatives in the national economy; increasing the education budget for the poor and needy; increased coordination between authorities; bureaucratic reform; and honest and fair law enforcement against corruption. For the micro-level at the LKMS institution, the cultural approach is carried out by strengthening literacy on Islamic financial instruments, increasing financial inclusion programs, social inclusion programs, and strengthening methods for obtaining funding sources from Islamic financial instruments. On the structural side, it is necessary to improve the professionalism and capability of supporting LKMS, institutional strengthening, internal control and supervision system, improvement of supporting infrastructure, and enhancing service convenience.

Legal Burden of Obligation to Pay Tax on Business Results in the Zakat Concept

“…By launching structured and tested programs, it is hoped that the government will also be able to break the spirit of zakat among the Muslim community, which has been the majority. (Heriyanto & Mariyanti, 2022)…”

Development of Sharia-Based Financial Products and Microfinance in Islamic Economy

“…Moreover, successful integration of Sharia-based finance and microfinance requires a comprehensive understanding of local contexts and the cultural nuances that influence financial behaviors. For instance, a study on poverty alleviation strategies in Indonesia suggests that these strategies need to be carried out through cultural and structural approaches, including revitalizing the concept of the people's economy as stated in the 1945 Constitution, campaigning for using the domestic product, socialization to increase literacy about waqf and zakat, improving the practices of bureaucratic ethics, and strengthening the values of togetherness and anti-monopoly [24].…”

Analysis of the influence of corporate governance on the financial performance of Islamic banks in Indonesia 2016 - 2021

“…From the above understanding, it may be interpreted that Islamic company Governance is an evolution from the same objectives as traditional top corporate governance, the concept of good corporate governance. But it's Islamic company governance that makes the difference is because Islamic Corporate Governance is founded on Islamic laws [20]. ICG is a regulation on the connection among owners, managers, traders, government, employees and stakeholders based on Islamic values [21].…”