Micro Waqf Bank: An Innovation Of Islamic Microfinance Institutions In Indonesia?
DOI:
https://doi.org/10.58812/wsshs.v2i01.567Keywords:
Innovation, Islamic FinanceAbstract
The innovation developed by Islamic financial institutions through Micro Waqf Bank has caused a new problem instead of overcoming the existing one. The problem is in relation to the institutional form which aims to be free from interest and riba. This study employed literature review method with supporting secondary data taken from trusted state institutions. The results indicated that the innovation carried out through the concept of Micro Waqf Bank is free from interest and riba not only because of the deposit regulation pertaining to Islamic banking institutions. Even the deposit yield under the name of profit sharing is considered riba as well. The result of the innovation is not economically profitable for the bank. On the contrary, it suffers a significant loss because it cannot invest its large assets. Moreover, the invested funds can trigger inflation of currency exchange rate as a result of the time frame of debts. In fact, deposits that are channeled into profitable business units will likely strengthen Micro Waqf Bank which is free from interest and riba. Moreover, if the deposits are managed properly, Micro Waqf Bank can obtain funds greater than the stipulated interest rate.
References
R. Craib, Adventure capitalism: A history of libertarian exit, from the era of decolonization to the digital age. PM Press, 2022.
R. Walters, “Greed, Excess, and the Evolution of Financial Capitalism: A History of Hedge Funds in the Modern Era,” 2013.
G. Delanty, “E urope in world regional perspective: formations of modernity and major historical transformations,” Br J Sociol, vol. 66, no. 3, pp. 420–440, 2015.
R. Bin Wong, “Modern Capitalism’s Multiple Pasts and Its Possible Future: The Rise of China, Climate Change, and Economic Transformation,” Capitalism: A Journal of History and Economics, vol. 2, no. 2, pp. 257–290, 2021.
R. W. Hefner and T. I. Ali, “Budaya Pasar: masyarakat dan moralitas dalam kapitalisme Asia Baru,” (No Title), 1999.
A. S. Rusydiana and S. Avedta, “Development of Islamic Bank-based Cash Waqf Management in Indonesia,” Islamic Social Finance, vol. 2, no. 2, 2022.
F. F. Hasib and A. S. Rusydiana, “Developing Micro Waqf Bank in Indonesia,” Islamic Social Finance, vol. 2, no. 1, 2022.
L. Cahyaningrat and A. Mongid, “Micro Waqf Bank: Combination of Microfinance and Community Development in Islamic Finance,” in Proceedings of the Third International Conference Administration Science, ICAS 2021, September 15 2021, Bandung, Indonesia, 2022.
F. F. Hasib and A. S. Rusydiana, “Developing Micro Waqf Bank in Indonesia,” Islamic Social Finance, vol. 2, no. 1, 2022.
A. Rahman, I. Fahmi, and I. T. Saptono, “Strategy and Business Model Reformulation for Development of Zakat, Infaq, Alms, and Waqf (ZISWAF)(Case Study Bank XYZ, Pekanbaru),” Journal of Consumer Sciences, vol. 7, no. 2, pp. 148–167, 2022.
S. Sarntisart, “A Comparison of Islamic Economics and the Sufficiency Economy Philosophy: Implications for Sustainable Development in Muslim Communities,” Journal of Politics and Governance, vol. 12, no. 1, pp. 286–313, 2022.
S. Sari and M. Faozy, “Ekonomi Islam Untuk Keberlanjutan Umat Beragama (Studi Faktor Yang Mempengaruhi Minat Anggota Non Muslim Dalam Menyimpan Di BMT Artha Sejahtera Bantul),” Jurnal Rekoginisi Ekonomi Islam, vol. 1, no. 1, pp. 11–27, 2022.
Y. Sutarso, “Pengaruh Brand Image dan Kemudahan Akses terhadap Minat Berqurban di Masjid dengan Moderasi Religiusitas,” Indonesian Journal of Islamic Economics and Business, vol. 8, no. 2, pp. 377–392, 2023.
M. H. Kamali, “Islam and sustainable development,” ICR Journal, vol. 7, no. 1, pp. 8–26, 2016.
A. S. Zein, “Non-Muslim Determinants Using Islamic Financial Institutions,” Al-Masharif: Jurnal Ilmu Ekonomi dan Keislaman, vol. 10, no. 2, pp. 274–283, 2022.
Р. И. Беккин, “Muslim Bank as a Historical Category: Creating Credit Institutions for Muslims In the First Half of the 20 th Century,” 2020.
M. Jamal and R. A. Ahmad, “Realizing Sdgs 2030 by Estimating Poverty Through Islamic Micro Financial Institutions,” International Journal on Economics, Finance and Sustainable Development, vol. 2, no. 12, pp. 6–12, 2020.
M. I. F. Rusdha and M. Z. Z. Zereen, “The impact of Amana bank (PLC) performance on Islamic banking sector development in Sri Lanka: special reference in Ampara district,” 2018.
H. Nugroho, Uang, rentenir, dan hutang piutang di Jawa. Pustaka Pelajar, 2001.
L. Sonne, “Innovative initiatives supporting inclusive innovation in India: Social business incubation and micro venture capital,” Technol Forecast Soc Change, vol. 79, no. 4, pp. 638–647, 2012.
M. S. Antonio, Bank Syariah: dari teori ke praktik. Gema Insani, 2001.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Arin kalamika
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Facebook 
Instagram 
Twitter 
Youtube 
+62 821 1557 5700
westscience.journals@gmail.com