Economic Pragmatism of Yogyakarta Muslim Community in Selecting Banking Institutions

Abstract

This research discusses the motives of the Muslim community in choosing banking institutions by using the analysis of pragmatism theory. This research is qualitative research using a phenomenology approach. Data collection that is used in this research is the interview, observation, and documentation. The result of the study indicated that the Muslim’s customer of Yogyakarta tend to be pragmatic due to the character of society which has more accommodating and flexible philosophy of life (tolerance). This pragmatic attitude was influenced by the internal factors (cognitive limitations) and external factors (reputation and service of Conventional Banks). Furthermore, adopting from the theory of Schutz’s motives that the motives reason (because of motive) of Yogyakarta's Moslem customers in choosing to the bank are their inconsistency in choosing is influenced by economic and service motives that are stronger than religious motives. As for their destination motive (in order to motive) namely fulfilling their needs.

Religion and Economy: How the Act of Rational Economy Dominates Muslim Entrepreneurs

“…Therefore, the moral economic action that Scott conceptualizes as the basic motive for the economic action of humans, individuals and institutions, which comes from beliefs and views of life about something that is good and wrong, in certain conditions the motive is not visible or even deliberately set aside (Scott, 1976). Moral and also religion are ideally able to control entrepreneurs in creating social harmony, in tight business situations, these motives are coopted by the dimensions of rationality that give birth to pragmatism, a perspective that puts the truth of an opinion measured from practical results (Aviva et al, 2020). In a difficult situation, a person cannot be sure what he will do right or wrong (Bankston III, 2002).…”