islamic microfinance in indonesia: a comparative analysis between islamic financial cooperative...
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This article was downloaded by: [Ryerson University]On: 03 December 2014, At: 01:24Publisher: RoutledgeInforma Ltd Registered in England and Wales Registered Number: 1072954 Registeredoffice: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK
Bulletin of Indonesian Economic StudiesPublication details, including instructions for authors andsubscription information:http://www.tandfonline.com/loi/cbie20
Islamic Microfinance in Indonesia:A Comparative Analysis betweenIslamic Financial Cooperative(BMT) and Shari'ah Rural Bank(BPRS) on Experiences, Challenges,Prospects, and Roles in DevelopingMicroenterprisesNur Indah Riwajantiaa Durham University.Published online: 03 Dec 2014.
To cite this article: Nur Indah Riwajanti (2014) Islamic Microfinance in Indonesia: A ComparativeAnalysis between Islamic Financial Cooperative (BMT) and Shari'ah Rural Bank (BPRS) onExperiences, Challenges, Prospects, and Roles in Developing Microenterprises, Bulletin ofIndonesian Economic Studies, 50:3, 483-484
To link to this article: http://dx.doi.org/10.1080/00074918.2014.980385
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Bulletin of Indonesian Economic Studies, Vol. 50, No. 3, 2014: 483–86
ISSN 0007-4918 print/ISSN 1472-7234 online/14/000483-4
ABSTRACTS OF DOCTORAL THESES ON THE INDONESIAN ECONOMY
Islamic Microfinance in Indonesia: A Comparative Analysis between Islamic Financial Cooperative (BMT) and Shari’ah Rural Bank (BPRS) on Experiences,
Challenges, Prospects, and Roles in Developing Microenterprises Nur Indah Riwajanti ([email protected])
Accepted 2013, Durham University
Different institutions in Indonesia engage in development efforts by appealing to different socioeconomic sectors. For example, Islamic Financial Cooperative (Baitul Maal wat Tamwil [BMT]) and Shari’ah Rural Bank (Bank Perkreditan Rakyat Syariah [BPRS]), two of the main Shari’ah microfinance providers in Indo-nesia, contribute greatly to socioeconomic development in both urban and rural areas, despite being different in nature. As a bank, BPRS enjoys sufficient support, regulation, and monitoring (from Bank Indonesia, the central bank); BMT, on the other hand, as a Shari’ah cooperative, receives limited support, regulation, and monitoring.
This study explores the role and potential of BMT and BPRS in developing microenterprises in East Java, Indonesia. It aims to measure the impact that these institutions have had on the economic and social wellbeing of their clients. It pro-poses strategies for improving the roles of these institutions, developed through an informed understanding of the findings established in the empirical part of the study. This study adopted triangulation as a research method, using quantitative and qualitative data collection (questionnaires and interviews) and analysis. The empirical analysis in this research is based on data collected from 348 question-naires from the clients of BMT or BMRS and 22 interviews with the directors or managers of these institutions.
The findings suggest that microenterprises in Indonesia face challenges in gaining access to finance, despite their large numbers, their potential, and their important role in the macroeconomy. BMT and BPRS also experienced chal-lenges, facing risk and moral hazard; difficulty in accessing borrowers’ financial flows; managerial problems; and a lack of capital (particularly owing to seasonal changes in circumstances), infrastructure, personnel, staff skills, vehicles; and, for BMT, the lack of an appropriate legal basis. With regard to the socioeconomic impact of gaining access to finance, the empirical findings show significant statis-tical improvements in microenterprises’ annual sales, business expenditures, net income, and employment. The variables that correlate with this economic impact are the assets owned, the financing received, and the duration of the microenter-prise’s relationship with BMT or BPRS. Similarly, less than half of the respondents
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484 Abstracts of Doctoral Theses on the Indonesian Economy
reported a positive social impact, and even fewer respondents reported a posi-tive religious or other impact. The strong predictors of social, religious, and other impacts are social development programs or services, which indicate the impor-tance of improving the frequency and coverage of these services. Although these findings present a mixed picture, they show a reduction in the number of poor respondents after financing—indicating a positive impact.
This study suggests that BMT and BPRS could expand their role in socioeconomic development by adopting proactive strategies, such as improving their training services (in collaboration with related educational institutions), provid-ing more information to the wider community about financing services, increas-ing their customers’ understanding of Islamic terms used in financial products, and being more innovative in developing financial products to meet the needs of their clients.
© 2014 Nur Indah Riwajanti http://dx.doi.org/10.1080/00074918.2014.980385
Barriers to the Consolidation of Peace: The Political Economy of Post-conflict Violence in Indonesia
Patrick Barron ([email protected]) Accepted 2014, University of Oxford
What causes postconflict violence to occur in some places emerging from largescale extended violent conflict and not in others? Why do episodes of postconflict violence take different forms? And what causes episodic violence to escalate into larger, renewed, deadly, longlasting violence? The thesis contributes answers to these questions by examining the experience of Indonesia.
Six provinces saw civil war or largescale intercommunal unrest around the turn of the 21st century. In each case, war ended. Yet levels, forms, and destructive impacts of postconflict violence vary significantly across areas. The Indonesian cases are used here to build a parsimonious theory of the sources of spatial and temporal variance in postconflict violence.
Multiple methods are employed. A new dataset—the National Violence Moni-toring System—containing over 158,000 coded incidents, maps extended and postconflict violence across areas and over time. Six districts in three provinces are then studied in depth. Comparative analysis of districts and provinces—draw-ing on more than 300 field interviews—identifies the determinants of variations in the levels and forms of postconflict violence.
Postconflict violence is not directly or deterministically produced by poverty, weak state institutions, or fractured social relations, the foci of much of the litera-ture. To understand why postconflict violence occurs, or does not, and why it takes the forms it does, we need to focus on the political economy of violence: the ways in which, and the reasons why, violence is used by different actors to shape decisions on the allocation of power and resources.
To this end, a novel, actorcentred explanation is developed. The thesis locates postconflict violence in the incentives of three groups—local elites, local violence specialists, and central state elites—to use violence instrumentally for purposes of accumulation. Violence occurs when members of these groups support its use.
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