Indonesia Conference Directory

Corresponding Author
Purwanto Purwanto

Institutions
1. Faculty of Business, President University, Bekasi - Indonesia, Purwanto[at]president.ac.id
2. Faculty of Economic and Business, Padjadjaran University, Bandung – Indonesia, ina.sagir[at]fe.unpad.ac.id
3. Faculty of Economic and Business, Padjadjaran University, Bandung – Indonesia, dian.masyita[at]fe.unpad.ac.id
4. Faculty of Economic and Business, Padjadjaran University, Bandung – Indonesia, erie_febrian[at]fe.unpad.ac.id

Abstract
The involvement of Islamic Microfinance Institutions (IMFI) in building the national economy is paramount to help the poor. Providing access and lower-level household services has the potential to create conflict with its sustainability. This study analyzes the social outreach factors that determine financial and social efficiencies. Mixed methods by combining quantitative and qualitative are able to answer the problems and desired goals. Data Envelopment Analysis (DEA) and multivariate analysis are statistical instruments, while interviews further clarify or deepen existing information. The estimation process of the dependent variables is influenced by the proxy of depth, breadth, length, scope, and cost. The results show that the average loan installments, the number of female borrowers, age, profit orientation and operational costs have a significant effect on financial and social efficiencies. The collection of funds and the amount and type of financing do not have a significant impact on financial efficiency, but is significant for social efficiency. Meanwhile, the amount and type of savings do not contribute significantly to both. The coefficients of determination were 45.1572% and 60.4167%. When compared to existing standards, the proportion is included as in the strong criteria.

Keywords
efficiency, outreach, depth, breadth, length, scope, cost

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/CVmRN4HgGZjD

Corresponding Author
Erfinda Mustika

Institutions
Departement Sharia Economic, Faculty Economic and Business, Airlangga University

Abstract
Economic growth is one indication of increasing community welfare. This study aims to determine how much the contribution of Islamic microfinance institutions, namely Islamic Savings and Credit Cooperative (ISCC) to economic growth (GRDP) in East Java through through Micro, Small and Medium Enterprises (MSMEs). The approach used in this research is descriptive quantitative approach using path analysis techniques with four exogenous variables, namely ISCC Total Capital, ISCC Total Assets, ISCC Net Income, and ISCC Business Volume. GRDP is an endogenous variable, and MSMEs are intervening variables. This study uses saturated samples, namely ISCC data from East Java cooperative performance data obtained from the East Java Cooperative & SME Office, then East Java Constant Price GRDP data obtained from Central Statistics Agency East Java, MSMEs that use Production Index data The Micro and Small Industry (IPIMK) was obtained from the National Statistics Agency.

Keywords
Islamic Micro Finance. Cooperative. Micro, Small and Medium Enterprises. Economic Growth.

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/4HtY6rMuEnB9

Corresponding Author
Haryo Firas Tunas Kuncoro

Institutions
Fakultas Ekonomi Islam

Abstract
This study describes the results of a study that analyzes the effect of third-party funds and non-performing financing on return on assets in SRBs in the period January 2014-December 2018 using the variables used are ROA, Third Party Funds (DPK), and NPF, the sample of the research is BPRS in Indonesia. The analytical method used uses multiple linear regression analysis, the statistical test is the coefficient of determination, t statistical test, simultaneous test F. The study found that the variable Third Party Funds (DPK) does not affect Return on Assets (ROA) in BPRS in Indonesia and Non variable Performing Financing (NPF) has no effect on BPRS in Indonesia.

Keywords
Third Party Funds, Non Performing Financing, Return on Assets.

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/3AubhnzT9Lqc

Corresponding Author
Mauizhotul Hasanah

Institutions
(a) Economic and Business of Faculty, Airlangga University, hasanahidzoh[at]gmail.com*
(b) Economic and Business of Faculty, Airlangga University,
siti-z[at]feb.unair.ac.id

Abstract
The financial sector in a region can spur the pace of economic movements, especially with the contribution of banks in the micro sector as an intermediary tool in channeling funds to productive investments that encourage the real sector, especially in the micro sector, which will produce aggregate output. The purpose of this study is to analyze the extent of the Islamic Peoples Financing Bank (BPRS), which is an Islamic microfinance institution for the economy on the island of Java. This study uses secondary data during the period January 2016 to December 2018. This study uses the Ordinary Least Square Data Panel method. Empirical results show that partially of Total Assets does not have a significant positive effect on GDRB. While the total financing, Third Party Funds (TPF), the number of BPRS partially has a positive and significant effect on GDRB. In addition, simultaneously the overall independent variables together have a significantly positive effect on GDRB

Keywords
BPRS, Regional Economy, Java Island

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/BDY6cxGWFXQM

Corresponding Author
Husnul Khatimah

Institutions
Universitas Islam 45

Abstract
The purpose of this study is to explain the role of BMTs in supporting inclusive financial policies, outline the obstacles faced in increasing financial inclusion. This research is a qualitative and quantitative study. The object of the research is BMT, society, academics, and experts in the field of Islamic microfinance as sources/informants. Data is processed using the ANP method. This research proves that BMT had a role in supporting financial inclusion policies in Indonesia. The issues faced by BMT is the problems of HR and products as the internal issues with legal and infrastructure problems as the external issues. To improve its role in the future, the priority strategy is an internal strategy, namely strengthening BMT functions, HR training, maintaining BMT characters, and increasing member benefits. External strategy by standardizing IT, improving BMT marketing strategies, and collaborating with Creative Economy Agency (Bekraf). The role of BMT in empowering micro-enterprises. BMTs efforts in empowering micro businesses are very optimal, namely by developing service products based on local needs and in accordance with the economic characteristics of the region in order to support the economic activities of the members. To improve its role the proposed strategies are internal strategies by strengthening BMT functions, training HR, maintaining character, and increasing member benefits with external strategies in the form of standardization of IT, improve marketing strategies, and cooperation with the Creative Economy Agency.

Keywords
analytical network process, financial inclusion, financial literacy

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/AztEjFMRNCuc

Corresponding Author
Bintang Rizky Abdullah Majo Saibah

Institutions
Economics, Andalas University, Jl. Rangkayo Rasuna Said, Kubu Gadang, Payakumbuh Utara, Kota Payakumbuh, Sumatera Barat 26218, Indonesia
bintangrizky[at]eb.unand.ac.id

Abstract
Child labor is a disturbing problem, because children has the right to obtain education, to receive protection, love and to enjoy his childhood. In many cases, poverty is the main reason of unpleasant childhood. Poverty makes the parents powerless to carry out their roles in the economic sector, and are forced to send their children to work. Working children will lose the opportunity to go to school thus will face difficulties in finding decent job in the future. In other words, reducing child labor is an active intermediary in reducing poverty. United nation is committed to reducing poverty in all aspects by 2030. This commitment is poured into the Sustainable Development Goals (SDGs). Several studies has shown that the ease of obtaining credit access in households is helping in reducing the number of child worker. This paper examines the correlation between child labor with micro credit access of Baitul Mall wat Tamwil (BMT) and Islamic Banking in Indonesia.

Keywords
Child Labor, Sustainable Development Goals, Baitul Mall wat Tamwil, Islamic Banking

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/fpgBNKqbVcZA

Corresponding Author
Faris Kurnia Hakim

Institutions
(a) Faculty of Economic and Business, Airlangga University, fariskhakim[at]gmail.com*
(b) Faculty of Economic and Business, Airlangga University, hasanahidzoh[at]gmail.com
(c) Faculty of Economic and Business, Airlangga University
siti-z[at]feb.unair.ac.id

Abstract
This research was conducted to determine the effect of mudharabah and musyarakah financing simultaneously and partially on Return On Assets of Islamic Rural Banks (BPRS) in Indonesia. The object of research is all Islamic Rural Banks (BPRS) in Indonesia from January 2016 to December 2018. The research approach used is a quantitative approach. The analysis technique used is OLS (Ordinary Least Squares) regression. The results of this study are that financing using mudharabah and musyarakah contracts simultaneously has a significant effect on Return On Assets of Islamic Rural Banks (BPRS) in Indonesia. Mudharabah financing partially has a significant effect on Return On Assets of Islamic Rural Banks (BPRS) in Indonesia. Musyarakah financing partially has a significant effect on Return On Assets of Islamic Rural Banks (BPRS) in Indonesia.

Keywords
Mudharabah, Musharakah, Return On Assets (ROA), BPRS

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/xvfqrVk79JUH

Corresponding Author
Marisa Ayu Andarini

Institutions
Sains Ekonomi Islam, Universitas Airlangga

Abstract
Effect of Capital Structure of Sharia Cooperative on Performance and Health of Sharia Microfinance Institution (LKMS) with the Ministry of Cooperatives standard indicator. This study aims to Determine and analyze the comparison of capital structure on the performance and health of an LKMS in Indonesia. The population in this study were four BMT or KSPPS in East Java with location distribution in Madura (BMT NU), Surabaya (BMT Muda), Bojonegoro (KSPPS As Salam) and Gresik (KSPPS MUI). The result of research shows that BMT NU has the highest level in Achieving optimal performance and health, so it can know the capital structure of BMT NU to Achieve the optimal performance and health. In the capital structure division of BMT NU there is a core capital with a share of 35% of total liabilities. Quasi Equity funds is Obtained from collecting third party funds based on the principle of mudaraba by 7% of Total Liabilities. Third party funds deposited in BMT NU are either voluntary or savings deposits amounting to 30% of Total Assets. BMT NU here Also has a large portion of debt to meet the Capital in running its business that is equal to 28% of Total Liabilities.

Keywords
Capital Structure, Sharia Cooperative Performance, Optimal performance and health.

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/e2KZkgWtz4fc

Corresponding Author
Akmalur Rijal

Institutions
Faculty of Islamic Economics and Business, State Islamic University Sunan Ampel of Surabaya
Faculty of Economics and Business, Airlangga University
Faculty of Islamic Economics and Business, State Islamic University Sunan Ampel of Surabaya
Faculty of Economics and Business, Airlangga University

Abstract
East Java has an average economic growth above the average national economic growth, which means the productivity of superior local commodities has been accepted and consumed by the community, both local and global community. Local commodities are goods produced by people with added value so as to increase per capita income and economic prosperity. This has become a common conversation both from practitioners, businesspeople, academics, and even government. The existence of local commodities need to be maintained and continue to be the focus of economic revamping, so it needs a development model of local superior commodities that can run continuously based on the values of justice, balance, and efficiency. This study aims to build a modification model which develop local commodity business in maqashid syariah perspective and produce business indicator that developed by maqashid syariah perspective. This research is expected to contribute a concept and application of scholarship which especially focuses on business development model. The research approach used is qualitative descriptive with explanatory analysis. The object of research is local businessmen from cooperative managers and coffee farmers in Puncu village, Kediri Regency. The financing model to develop the local commodities business of East Java lies not only in developing the material only, but also should place human as the subject and main object to be involved in the business development process. The indicator of commodity business that develops based on the perspective of maqashid shariah is the preservation of worldly and ukhrowi maslahah

Keywords
Financing, Business, Local Commodities, Maqashid Syariah

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/9yk7MrYDVujm

Corresponding Author
Jihad Hud

Institutions
a) Faculty of Economy and Business, Airlangga University
Jl. Airlangga 4-6, Surabaya Indoesia 60285
*jihadhudam[at]gmail.com
b)Faculty of Economy and Business, Airlangga University
Jl. Airlangga 4-6, Surabaya Indoesia 60285

Abstract
Islamic banks in Indonesia have been in existence for more than twenty years. Indonesia has a unique type of banking with a special segmentation of micro small and Medium Enterprises we call it rural banks, where not all countries have it. With a very large number reaching 1,593 conventional bank and 165 islamic bank. This paper aims to describe and critically evaluate and compare the financial performance of Islamic rural banks to that of conventional rural banks. Three aspect are Profitability, Liquidity and Financing quality for Islamic and conventional banks are examined. The analysis of monthly data covers the period from January 2009 to Desmber 2018 (120 observations). Paired sampled t-test was adopted to see whether there are significant differences in the financial ratios between both banks. This study found that on profitability and financing quality aspect conventional rural banks are significantly higher than that of Islamic rural banks, but not on liqudity aspect. Based on that result the findings suggest that Islamic banks need to mantain their financing quality to get higher profit. Conventional banks need to push financing to support the real sector as that of Islamic banks.

Keywords
rural Islamic banks; rural conventional banks; financial performances

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/rWbPqLg3ewuD

Corresponding Author
Lisa Febriani

Institutions
Airlangga University

Abstract
This study aims to examine whether the Riba Free Community of the Directorate General of Taxes (Komunitas Bebas Riba Direktorat Jenderal Pajak/Kobar DJP) has criteria that are close to the Islamic Savings and Loan and Financing Cooperative (Koperasi Simpan Pinjam dan Pembiayaan Syariah/KSPPS) and whether it can finally be concluded that the Kobar DJP is a miniature of informal Islamic cooperatives at the Directorate General of Taxes (DGT). This research is a qualitative study with a case study method. Data is obtained through library research by juxtaposing the Kobar DJPs Articles of Association and By-laws with government regulations regarding cooperatives and Islamic cooperatives, as well as other electronic literature. In addition, interviews were conducted with members and administrators of the Kobar DJP to find out the business processes in it. The results show that there are many characteristic similarities between Kobar DJP and KSPPS so that it can be concluded that Kobar DJP is a miniature of informal Islamic cooperatives at the DGT.

Keywords
Riba, Cooperatives, Islamic Cooperatives, Kobar DJP, KSPPS

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/nU6TcWDbeHJB

Corresponding Author
MOHAMED NOORDEEN MOHAMED IMTIYAZ

Institutions
(a,b, & d) Kulliyah of Economics and Management Sciences, International Islamic University Malaysia.

(c) IIUM Institute of Islamic Banking and Finance,International Islamic University Malaysia

Abstract
Micro enterprises are emerging as an important sector in economic system of the Malaysia by contributing significantly to Gross Domestic Product (GDP) and providing employment opportunities to millions of workers in the country. Despite its importance in contributing towards the enhancement of wellbeing of the society and the continuous efforts from the government, Micro enterprises in Malaysia, are struggling with several issues. Majority of them are facing difficulties in obtaining financing as they rated as a market segment associated with high risk. Contemporary Islamic banks are in paradigm of shifting its portfolio towards debt financing and after considering the current Islamic finance and banking phenomenon, there is a need arise for special purpose Islamic financial institution to serve the capital requirements of micro enterprises. This study suggests a mosque based sustainable model for financing micro enterprises using cash waqf with a significant feature of involving mosque-based administration committees (AJK) to intermediate between the Waqf Corporation of Selangor (PWS) (Waqf assets managing body of State Islamic Religious Council of Selangor (MAIS)) as Mutawalli of waqf, and micro enterprises at village level. The study is based on the Selangor state as the case study. The model suggested by this study may helpful in addressing the financing constraints of Micro enterprises and further improving wellbeing of the Muslim society by better usage of cash waqf. Thus will enhance the lives of ordinary individuals to stand by their own which will result in equitable distribution of economic resource among Muslims. Outcome of this study may enlighten Islamic financial institutions, waqf administrators and policy makers for their strategic planning activities in Islamic microfinancing.

Keywords
Cash Waqf, Islamic Microfinance, Mosques

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/3py2h6jaV9XW

Corresponding Author
TRIMULATO TRIMULATO

Institutions
UIN ALAUDDIN MAKASSAR, SOUTH SULAWESI
IAIN DATO KARAMA PALU, CENTRAL SULAWESI

Abstract
Abstract: Islamic microfinance institutions in Indonesia going into well improving, especially in providing services to the public, In February 2018, growth of financing by 52.883 percent. The existence of Islamic microfinance institutions has a role increasing public economic income. It is in line with the goal of sustainable development or commonly called Sustainable Development Goals (SDGs), that-s SDGs have 17 goals to be achieved until 2030. Among these goals is to bring prosperity to all levels society. This goal is in line with the existence Islamic microfinance institutions to improve standard of living and public welfare. The type in this paper is a qualitative method, the method used is qualitative descriptive analysis, which describes the growth of Islamic microfinance institutions in BPRS and BMT institutions. This paper describes the SDGs which have objective conformity with BPRS and BMT. The results this paper indicate growth in Islamic microfinance institutions, where there are several components in BPRS grow above 10 percent. The results show there are financing aspects grow by the percentage 17.008 percent or 9,084,467,000,000. The BMT financial ratio of the remaining operating results grew by 403.532 percent. This study to provides information that Islamic financial institutions are in accordance with the achievement program SGDs related to increasing income and economic activities the community can be realized with the presence of welfare. As for the form the role sharia financial institutions in the form of, easy access to finance from access to capital and socialization of the introduction of financial investment products.

Keywords
BPRS, BMT, and Sustainable Development Goals (SDGs)

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/RWGmkw8jMen7

Corresponding Author
Adhitya Ginanjar

Institutions
Institute of Islamic Banking and Finance International Islamic University Malaysia

Abstract
Abstract: Financial inclusion has implemented by Financial Services Authorities (OJK) since 2014 in Indonesia by starting with 6 public banks and become 18 conventional banks and 2 Islamic banks in 2016. On the other hand, roles of Islamic Microfinance Institutions (IMFIs) more likely in implementing financial inclusion. More than 56.5 million Micro Small Medium Enterprises (MSME) contributed greater than 50% of Gross Domestic Product (GDP) and 23.551 microfinance institution are be able to deliver financial access to the poor in rural area. Financial inclusion has agenda in alleviating poverty, creating wealth and maintaining sustainability of financial services. This study purposes to observe the determinants influencing IMFIs in improving financial inclusion from the perspective of the IMFIs in view of their direct contribution in the process and having rich information about financial issues facing the borrowers. The managers also understand about financial inclusion agenda as well as financial guidelines and regulations issued by the relevant authorities. A total of 362 managers of Baitulmaal Wa Tamwil (BMTs), which registered under the Sharia Cooperative Centre (INKOPSYAH) are taken as respondents that representative of entire Indonesia cooperative from the Jakarta, Bogor, Depok, Tangerang, Bekasi (JABODETABEK), West Java, Middle Java, East Java, DI Yogyakarta and Lampung areas. The first instrument was a survey questionnaire, and the second one was an in-depth interview to outline data related to the model design. The findings of this research are expected to contribute to better decision-making for the policy makers especially Financial Services Authorities (OJK) to further develop IMFIs role in improving financial inclusion. The findings also elaborate several dimensions to improving financial inclusion among BMTs environment including consumption in term of financing, adopting well management, accepting subsidize, expanding businesses, implementing internal BMTs policies, enhancing community development and training financial education. This research highpoints the need for a variety of strategies to license success of improving financial inclusion by BMT.

Keywords
Financial Inclusion; Islamic Microfinance Institutions; Baitulmaal Wa Tamwil, Islamic finance

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/ZLynqcxrg7Ud

Corresponding Author
Muhammad Sanusi

Institutions
a) Master Candidate of Islamic Economic, Faculty of Economic and Business, Universitas Airlangga, Surabaya, Indonesia
*sanusiekis171[at]gmail.com
b) Departement of Islamic Economics, Faculty of Economic and Business, Universitas Airlangga, Surabaya, Indonesia

Abstract
This paper investigates the impact of bank-specific and macroeconomic variables on the profitability of Islamic rural bank (BPRS) in Indonesia. Using monthly time series data from January 2010 - December 2018. The estimation model used is a vector error correction model to analyze the long-term and short-term relationships between bank-specific and macroeconomic variables on the profitability of Islamic rural bank. The results showed that in long-run CAR and LnTA had a positive and significant relationship, while NPF, BOPO and IPI had a negative and significant relationship to the profitability of Islamic rural banks. But FDR and Inflation variables are not significantly related to the profitability of Islamic rural bank. The results leave implications for policy makers, investors and banking sector managers. Based on evidence that bank profitability is more influenced by internal banks (as specific as banks), this research can help Islamic rural banks to help them understand which factors are important to be analyzed to obtain higher profitability.

Keywords
Bank-specific, Islamic rural bank (BPRS), Macroeconomic, VECM

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/2ZnBrKpz7fCX

Corresponding Author
Aprilya Fitriani

Institutions
IAIN Jember

Abstract
As a follow-up to the global agreement of MDGs, the United Nations launches the SDGs to end poverty, reduce gaps and protect the environment. SDGs can be achieved through the role of Islamic Microfinance in muslim countries including Indonesia. Islamic Microfinance institutions are institutions that are born, grow, and thrive in the community. One model of Islamic Microfinance institution in Indonesia is Baitul Mal Wat Tamwiel (BMT). BMT is a uniqueness of the Islamic Microfinance that has the role of integrated Islamic commercial and social finance, which could better achieve triple-bottom-line of SDGs, including economic development, environmental sustainability, and social inclusion, especially for the poor and Micro Small Enterprises in the rural area. The main purpose of this research is to explore the relevant conceptual framework in the Islamic Microfinance in the achievement of the SDGs. The methodology of this study based on the analysis of the relevant literature. This research identifies the potential financing of sustainable infrastructure investments through Islamic Microfinance. The results indicated that the Islamic Microfinance, especially the Baitul Mal Wa Tamwiel (BMT), which is rooted in the community, has the potential to develop independent community capabilities.

Keywords
SDGs, Islamic Microfinance, Baitul Mal Wa Tamwiel

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/abuJjHQNLTw7

Corresponding Author
Aimatul Yumna

Institutions
Universitas Negeri Padang

Abstract
This study examines the characteristics of Non-Profit Microfinance Institutions (NMFI) clients and discuss the determinant factors used by Islamic NMFI to select the clients. Primary data was collected using questionnaires of 270 respondents including the clients and non-clients of three case study institutions in Jakarta and Yogjakarta Indonesia. Data was analyzed using poverty level analysis and logistic regression. The findings show that clients and the non-clients of NMFIs have a similar profile in relation to age, formal education period, and family size variables. Further analysis of poverty level shows that the majority NMFIs- clients live above the national poverty line, but they live perilously close to the edge of the poverty line. Using logistic regression, this study found that the higher the client-s income level, the higher the probability of their being selected in the program. This finding indicates that Islamic non profit microfinance institutions have not selected the more vulnerable group in society to be their clients. This study suggests some possible barriers to include the poor in the microfinance including institutional selection policy and self exclusion factors.

Keywords
Islamic microfinance, client selection, nonprofit microfinance

Topic
Islamic Micro finance

Link: https://ifory.id/abstract/Qb2nzGCN8drt