Sharia Compliance Measurement in Islamic Financial Institutions Based on Product, Personal, and Environment: Ethnography Study at BTM Amman Magelang
Andi Triyanto*, Nurodin Usman
Universitas Muhammadiyah Magelang, *andi_rabbani[at]ummgl.ac.id
Abstract
Sharia compliance principles is a differentiator of Islamic cooperatives with conventional one to attract the consumers. At present, the cooperative is the legal entity of a "typical" Islamic microfinance institution and known as Baitul Maal Wa Tamwil (BMT). However, unlike banking, there has not yet been found a standard model for evaluating sharia compliance. This study examines the sharia compliance measurement based on product, personal, and environmental model which are developed from the literature of the compliance basics, the faith concept. The study was conducted by ethnographic methods at BTM AMMAN Magelang. The result shows that the institutions orientation for sharia compliance is still dominated by product aspects followed by personal and environmental aspects. Therefore, these three aspects should be practised effectively to meet the effort for sharia compliance.
Keywords: faith concept; sharia compliance; sharia governance
Topic: Economics