The role of Islamic microfinance in poverty alleviation and environmental awareness in Pasuruan, East Java, Indonesia

Effendi, Jaenal

doi:10.17875/gup2013-230

Cited by 25 publications

(34 citation statements)

References 77 publications

(88 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The Muslims' awareness of the prohibition of interests in Islam is nurtured formally in schools and others learning institutions (Effendi, 2013). The awareness that interests are prohibited in Islam has a great impact on the Islamic banking system.…”

Section: Resultsmentioning

confidence: 99%

The Role of Religious Education in Promoting the Islamic Banking System among the Young Muslim Generation: A Case Study

Kasmo

Possumah

Haron

et al. 2015

JSD

View full text Add to dashboard Cite

The paper reports and discusses a study which was conducted on 490 Muslim respondents from the young generation between the ages 18 to 40 years. The study aimed to identify the popularity of the Islamic banking system among the students of the National University of Malaysia, and the role of Islamic education in promoting the Islamic banking system to the respondents. The findings of the study could be used to popularise further the Islamic banking system in the country. The respondents were selected randomly from The National University of Malaysia. Each respondent was given a booklet of questionnaires containing statements with given choices of yes or no answers as well as the open ended questions. The responses were analysed using the Statistical Package for the Social Sciences (SPSS), to obtain the percentages of the responses. The findings of the study indicated that the Islamic banking system was very popular among the younger generation. About 63% of respondents kept their savings in the Islamic banking system. The findings also shown that the respondents who are most inclined towards the system were those who had been educated in the Islamic education system. 85.0% of the students of the Islamic Studies Faculty saved their money in the Islamic banking system, followed by the respondents from the Faculty of Education (73%) and also the Faculty of Law (72.3%). The controlled groups i.e. the respondents from the other faculties, where the Islamic education was not thought, the percentages of the respondents who saved in the Islamic banking system were much lower.

show abstract

Section: Resultsmentioning

confidence: 99%

The Role of Religious Education in Promoting the Islamic Banking System among the Young Muslim Generation: A Case Study

Kasmo

Possumah

Haron

et al. 2015

JSD

View full text Add to dashboard Cite

show abstract

“…Iqbal and Shafiq (2015) investigated the AKHUWAT program as a case study of Qard-Al-Hasan and found that it had successfully improved the standard of living of its beneficiaries by transforming them into donors. Effendi (2013) conducted qualitative analysis of the role of Islamic microfinance in poverty alleviation, finding that Islamic microfinance was more successful than conventional microfinance in reducing poverty because of its interest-free financing options and more flexible repayment plans.…”

Section: Discussionmentioning

confidence: 99%

Qard-Al-Hassan as a Tool for Poverty Alleviation a Case of Fael Khair Waqf Program in Bangladesh

Muneer

Khan

2019

JIMF

View full text Add to dashboard Cite

Islamic economic system centrally focuses on socioeconomic justice and overall welfare of the society especially the bottom of the pyramid segment. Qard-al-Hassan, alongside zakat and sadaqah, is one of the instruments of redistribution of income and wealth from the rich to the poor in Islam. In 2007, Bangladesh struck by super cyclone SIDR, leaving 3,406 people dead. Moreover, the SIDR caused unprecedented damage to homes, crops and livelihoods. Fael Khair Waqf (FKW) Program came as a response to the urgent need for assisting the victims of SIDR which initiated an interest-free micro-loan (Qard-al-Hassan) scheme to restore the livelihoods of a large segment of victims and to uplift them from poverty. While investigating the effectiveness of Qard-al-Hassan in poverty reduction, this paper has examined FKW program as a case. This study conducted an analysis on 1600 households using independent sample t-test and logistic regression to investigate to what extent FKW program has been effective in reducing poverty. The finding of the logistic analysis is that the probability of being poor for FKW participants is around 1.46 times lower than the non-participants. Moreover, Qard-al-Hassan of FKW lowers the cost of borrowing significantly and hence the participants can accumulate more assets which might help them to improve their economic status after the cyclone. Overall, the effectiveness of this program implies that the development practitioners and researchers should promote the outreach of Qard-al-Hassan so that extreme poor can easily avail the services.

show abstract

“…Microfinance institutions (MFIs) use simple administrative procedures and the general abolishment of collateral to allow inhabitants of remote areas to access microfinance, whilst maintaining relationships with them and assisting with their financial and personal problems, educating them, and providing aid in the event of environmental disasters. Hence, microfinance is believed to have a positive effect on both poverty alleviation and environmental awareness (Effendi, 2013).…”

Section: Islamic Microfinancementioning

confidence: 99%

“…According to Effendi (2013), in Indonesia, the country with the biggest Muslim population in the world, Islamic finance, which was established in 1991 and saw rapid development during the politically volatile years of 1997 and 1998, comprises commercial banks and banking units, Islamic rural banks, and Islamic financial cooperatives. While the commercial Islamic banks focus on providing savings, financing, and insurance mainly to the medium and large businesses, those running small or micro-businesses are restricted from receiving their services.…”

Section: Islamic Microfinancementioning

confidence: 99%

Can Islamic Microfinance Alleviates Poverty in Indonesia? An Investigation From the Perspective of the Microfinance Institutions

Ginanjar

Kassim

2020

JIMF

View full text Add to dashboard Cite

This study examines the poverty alleviation efforts undertaken by the Islamic microfinance institutions (IMFIs) in Indonesia. We focused on the role played by the IMFIs in view of their direct involvements in the process of dealing with the borrowers, and their better understanding about the financial inclusion agenda as well as the financial guidelines and regulations issued by the relevant authorities. In methodology, a total of 34 managers of Baitul Maal wat Tamwil (BMTs) were taken as respondents from the Jakarta, Bogor, Depok, Tangerang and Bekasi (JABODETABEK) areas. A two-step approach was adopted in arriving at enriching findings: first, a survey questionnaire was distributed to the respondents, and subsequently, an in-depth interview was conducted to outline data related to the model design. The findings of this study highlight specific dimensions to improve financial inclusion among the poor. Apart from providing important inputs for better decision-making for the BMTs to further enhance its role in poverty alleviation, this study suggests a variety of strategies to warrant success of poverty alleviation efforts by BMT.

show abstract

The role of Islamic microfinance in poverty alleviation and environmental awareness in Pasuruan, East Java, Indonesia

Cited by 25 publications

References 77 publications

The Role of Religious Education in Promoting the Islamic Banking System among the Young Muslim Generation: A Case Study

The Role of Religious Education in Promoting the Islamic Banking System among the Young Muslim Generation: A Case Study

Qard-Al-Hassan as a Tool for Poverty Alleviation a Case of Fael Khair Waqf Program in Bangladesh

Can Islamic Microfinance Alleviates Poverty in Indonesia? An Investigation From the Perspective of the Microfinance Institutions

Contact Info

Product

Resources

About