Islamic Microfinance Institution Assistance Model in the Covid-19 Pandemic
DOI:
https://doi.org/10.12928/ijiefb.v5i2.7262Keywords:
Islamic Microfinance Institutions, Impact of Covid19, MentoringAbstract
Introduction: Sharia Microfinance Institutions in the form of Baitul Mal wa Tamwil (BMT) is a form of financial inclusion that plays an important role in the development of micro and small businesses. Its main activity is to raise member funds in the form of deposits and redistribute them in the form of microfinance. During the covid 19 era, almost all of its members were affected, causing operational disruptions.
Purpose: This study aims to analyze the impact of covid 19 on BMT and members as well as the social assistance model carried out until December 2021.
Methodology: Determination of the sample using porpusive sampling with respondents as many as 43 BMT spread across Sumatra, Java and Sulawesi. The three islands were chosen because they became the center of BMT's growth. The data collection method uses google form, while the data analysis uses qualitative descriptive analysis.
Findings: The results of the analysis show that covid 19 has a direct impact on BMT's performance by an average of 8.4%, in the form of a decrease in financing installments, deposits and profits as well as an increase in non-performing financing. Although BMT's performance has decreased, its social role has increased in the form of social assistance, such as relaxation of financing, member education and facilitation of marketing of member products through social media, and the provision of basic social assistance.
References
Abdullah, MA. (2016), Corporate Governance of Sharia Banks in Indonesia, Yogyakarta, Ar Ruzz Media.
Aguinis and Glavas, (2012), What We Know and Don't Know About Corporate Social Responsibilty: A View Research Agenda, Journal of Management, 38(4), 932-968.
Annavarjula. M. (2012), Community Connections to Enhance Undergraduate.
Aziz, MA, (1996), Guidelines for the Formation of Baitul Mal wa Tamwil, Jakarta, Pinbuk.
Backman (2011), Escaping welfare? Social assistance dynamics in Sweden Olof Bäckman Journal of European Social Policy, 19(5).
Bahle, T. et al. (2014), Social Assistance, The Oxford Handbook of the Welfare State, Oxford University Press.
Berg SVD and Seibrits K. (2011), Social assistance reform during a period of fiscalstress, Stellenbosch Economic Working Papers: 17/10.
Carina and Leibetseder. B. (2014), Constructing Inequality: Deserving and Undeserving Clients in Austrian Social Assistance Offices, Jnl Soc. Pol., 44, (1), 127–145.
Catoiu, et al. (2016), Knowledge-Intensive Business Services and Business Consulting Services in Romanian Changing Economic Environment, Amfiteatru Economic Journal, 18 (41), 40-54.
Cristian-Craciun.S. (2013), Quality of Business Consulting Services, International Journal of Academic Research in Economics and Management Sciences, 2 (1).
Dayrit, M.M., and Mendoza, R.U., (2020), Social Cohesion Vs Covid 19, International Journal of Health Governance, JEL Classification-F35 H12.
Dasuki, A.W., (2007), "The Ideal of Islamic Banking A Survey of Stakeholders Perceptions, Review of Islamic Economic", Journal of Special Issues, 11(2), 29-52.
Gocman I. (2014), Religion, politics and social assistance in Turkey: The rise of religiously motivated, Journal of European Social Policy,24 (92).
Grais, W. and Matteo, P., (2006), "Corporate Governance and Sharia Compliance in Institutions Offering Islamic Financial Services", Work Papers, World Bank Policy Research, No. 4054.
Handfiel R.B. et al, (2020), Corona Virus, Tariffs, Trade Wars and Suplay Chain Evolutionary Design, International Journal of Operations & Production Management, 0144-3577.
Harris KJ. Et al. (2015), Leader–member exchange and empowerment: Direct and interactive effects on job satisfaction, turnover intentions, and performance, The Leadership Quarterly.
Heo., et al., (2020), A Test of The Association Between the Initial Covid-19 Case and Subsequent Changes in Financial Risk Tolerance, Review of Behavioral Finance, 1940,5979.
Huda N., et al. (2016), Baitul Mal wa Tamwil, A Theoretical Review, Jakarta, Amzah.
International Business Education: An Example of Business Consulting Projects, Journal of Teaching in International Business, 23 (2), 222–235.
Iqbal N., (2014), Impact of Corporate Social Responsibility on Financial Performance of Corporations: Evidence from Pakistan, International Journal of Learning & Development, 2(6), 108-118.
Iqbal, Z. and Mirakhor, A., (2004), "A Stakeholders Model of Corporate Governance of Firm in Islamic Economic System", Islamic Economic Studies, 11(2), 43-63.
Kallio J. and Kouva A. (2015), Street-level Bureaucrats' and the General Public's Deservingness Perceptions of Social Assistance Recipients in Finland, Journal of Social Policy anda Administration, 49(3), 316-334.
Kasri, R.A. (2016) Effectiveness of Zakah Targeting in Alleviating Poverty in Indonesia. Al-Iqtishad: Journal of Islamic Economics, 8(2), 169 – 186.
Khotib, AM., (2019), Reconstruction of Zakat Jurisprudence, Comprehensive Study of Zakat Jurisprudence Theoretical and Methodological Approaches, Malang, Literacy of the Eternal Archipelago.
Latief H., (2010), Serving the People, Islamic Philanthropy and Idiology of the Modernists, Jakarta, Gramedia Pustak Utama.
Leisering L. and Barrintos A. (2013), Social citizenship for the global poor? The worldwide spread of social assistance, International Journal of Social Welfare, 2(1), 50-67.
Lindgreen A, and Swaen V., (2010), Corporate Social Responsibilty, International Journal of Management Reviews, 2(1).
Nelson K. (2010), Social assistance and minimum income benefits in old and new EU democracies, i International Journal of Social Welfare, 19(1), 367-378.
Nelson K. (2012), Counteracting material deprivation: The role ofsocial assistance in Europe, Journal of European Social Policy,22(2), 148–163.
Nelson K. (2013), Social Assistance and EU Poverty Thresholds 1990–2008. Are European Welfare Systems Providing Just and Fair Protection AgainstLow Income? European Sociological Review, 9(2), 386–401.
Ozili, P., (2020), Covid 19 in Africa, Socio Economy Impact, Policy Response and Opportunities, Journal of Sociology and Social Policy, JEL Classifications, G21,G28.
Rachmawati E. and Fountain J. (2020), Role of External Stakeholders in Tourism Development and Community Empowerment ,International Journal of Applied Sciences in Tourism and Events, 4(1), 25-41.
Raharjo, D., (1999), Islam and Socioeconomic Transformation, Jakarta, Institute for the Study of Religion and Philosophy.
Riduwan, (2006), Management of Baitul Mal wa Tamwil, Yogyakarta, UII Press.
---------, (2019), Mudarabah Financing System in Sharia Banks, Analysis of Sharia Compliance and Risk, Yogyakarta, UII Dissertation, (unpublished).
Sweeney, L. and Coughlan, J. (2008). Do different industries report corporate social responsibility differently? An investigation through the lens of stakeholder theory, Journal of Marketing Communications, 14,(1), 113–124.
Uadiale OM., and Fagbemi TO, (2012), Corporate Social Responsibility and Financial Performance in Developing Economies: The Nigerian Experience, Journal of Economics and Sustainable Development, 3 (4), 44-68.
Velamuri et al. (2013), Product Servives System As A Driver For Business Model Innovation: Lesson Learned From The Manufacturing Industry, International Journal of Innovation Management, 17(1).
Williams A., and Siegel D., (2010), Creating and Capturing Value: Strategic Corporate Social Responsibility, Resource-Based Theory, and Sustainable Competitive Advantage, Journal of Management , 37. 1480.
Zakaria, M. and Mohamad, NS. (2019), Effectiveness of Zakah in Fulfilling Daruriyat, Journal of Management, 56, 1-15.
Downloads
Published
Issue
Section
License
Copyright (c) 2023 Universitas Ahmad Dahlan
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
License and Copyright Agreement
In submitting the manuscript to the journal, the authors certify that:
- They are authorized by their co-authors to enter into these arrangements.
- The work described has not been formally published before, except in the form of an abstract or as part of a published lecture, review, thesis, or overlay journal. Please also carefully read Ihtifaz, Journal of Islamic Economics, Finance, and Banking Posting Your Article Policy at http://journal2.uad.ac.id/index.php/ijiefb/about/submissions#onlineSubmissions
- That it is not under consideration for publication elsewhere,
- That its publication has been approved by all the author(s) and by the responsible authorities “tacitly or explicitly“ of the institutes where the work has been carried out.
- They secure the right to reproduce any material that has already been published or copyrighted elsewhere.
- They agree to the following license and copyright agreement.
Copyright
Authors who publish with Ihtifaz, Journal of Islamic Economics, Finance, and Banking agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC BY-SA 4.0) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
_1.png){kind=logo}
