Shari'ah appraisal in Islamic microfinance institutions in Riau Archipelago, Indonesia : BMT's products and services /
The Islamic microfinance institution model, such as BMT institutions, has been established and developed in Indonesia for the past two decades. The institutions' development has definitely been very helpful to the country's economy, particularly for Muslim entrepreneurs. However, besides t...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English |
| Published: |
Kuala Lumpur :
Kulliyyah of Islamic Revealed Knowledge and Human Sciences, International Islamic University Malaysia,
2015
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| Subjects: | |
| Online Access: | http://studentrepo.iium.edu.my/handle/123456789/6844 |
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| Summary: | The Islamic microfinance institution model, such as BMT institutions, has been established and developed in Indonesia for the past two decades. The institutions' development has definitely been very helpful to the country's economy, particularly for Muslim entrepreneurs. However, besides this development it has been found that society has some doubts about the operation of some products and services offered by BMT institutions in terms of whether they are Shari'ah compliant or not. Therefore, this study is designed mainly to assess the Shari'ah compliance of the products and services offered by selected BMT institutions in Riau Archipelago Indonesia, which are relatively unique compared to conventional ones and which operate under the banner of Islamic principles and values. This study employs the descriptive statistic analysis based on responses obtained from the research sample and qualitative data as well as a critical analysis from the Shari'ah perspective. The study utilizes questionnaires to obtain the perceptions of BMT's customers and employees while it uses interview to obtain the assessments of Shari'ah Supervisory Board (SSB) members. There are 150 customers, 50 employees and 8 SSB members who are actively involved as the respondents of the study. As a result, the study found that the products and services of selected BMT institutions were problem and not totally Islamic although in a sense that they are so much better, if compared to conventional products and services. The most reasonable arguments of the problem were derived from the operating system of selected BMT institutions which is parallel with the conventional counterparts that prohibited by Islam. Therefore, to overcome the significant problem, it is necessary to reform the current operation of microfinancial system in order to uphold and include the Islamic microfinance system as an alternative of conventional microfinance and one of the important vehicles in the grass root economic and financial system. Besides that, the optimalization of the Shari'ah supervision (al-raqabah Sharciyyah) aspect should be taken positively and seriously by the National Shari'ah Council of the Indonesian Ulama' Council in order to prevent the BMT institutions from breaking the Shari'ah principles and values. Currently, there are more than four thousand units of BMT institutions scattered throughout the entire provinces of Indonesia, including 48 BMT institutions in Riau Archipelago. Without efforts towards this direction, it will cause many problems and will be considered a disaster to the future of the entire BMT institutions in Indonesia, particularly in Riau Archipelago. |
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| Physical Description: | xx, 305 leaves : ill. ; 30cm. |
| Bibliography: | Includes bibliographical references (leaves 244-255). |