Universal Journal of Accounting and Finance Vol. 9(2), pp. 178 - 183
DOI: 10.13189/ujaf.2021.090205
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The Role of Islamic Microfinance Institution in Empowering Indonesian Fishing Communities

Azhar Alam ^1,*, Renaldi Sahrul Nizam ¹, Muhamad Taufik Hidayat ^2
1 Department of Islamic Law and Economy, Universitas Muhammadiyah Surakarta, Surakarta, Indonesia
² Department of Elementary School Teacher Education, Universitas Muhammadiyah Surakarta, Surakarta, Indonesia

ABSTRACT

There are still many fishing communities in Indonesia that live in poverty. That situation happens because they have been depending on moneylenders who provide high-interest rates. This study's focuses were: First, to reveal the role of Baitul Maal wa Tamwil (BMT) or Islamic Microfinance Institution (IMFI), which embrace fishermen by implementing the free late interest system. Second, to reveal the products of IMFI for the fishing community as a form of empowerment. This study was a descriptive qualitative with a case study method. Informants of this study consist of employees and clients of BMT Mandiri Sejahtera Jawa Timur in Blimbing (BMSB), Lamongan, Indonesia. Data collection techniques used were interview, observation, and documentation. The data analysis technique was interactive analysis consisting of data reduction, data presentation, and concluding. This study showed that: First, BMSB had a pretty good role, but not effective yet in empowering fishing communities. Second, BMSB only offered savings and mortgage financing products with Islamic principles. Third, BMSB did not foster a productive attitude toward fishermen in providing additional income.

KEYWORDS
Islamic Microfinance Institution, Empowerment, Fishermen

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Azhar Alam , Renaldi Sahrul Nizam , Muhamad Taufik Hidayat , "The Role of Islamic Microfinance Institution in Empowering Indonesian Fishing Communities," Universal Journal of Accounting and Finance, Vol. 9, No. 2, pp. 178 - 183, 2021. DOI: 10.13189/ujaf.2021.090205.

(b). APA Format:
Azhar Alam , Renaldi Sahrul Nizam , Muhamad Taufik Hidayat (2021). The Role of Islamic Microfinance Institution in Empowering Indonesian Fishing Communities. Universal Journal of Accounting and Finance, 9(2), 178 - 183. DOI: 10.13189/ujaf.2021.090205.