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Poverty Alleviation Through Zakat Impact: MSMES and The National Zakat Collection Agency (BAZNAS) Studies Ahmad Afif; Ade Wirman Syafei; Etom Katamsi
International Journal of Islamic Business and Economics (IJIBEC) Vol 9 No 2 (2025): Volume 9 Nomor 2 Tahun 2025
Publisher : Universitas Islam Negeri K.H. Abdurrahman Wahid Pekalongan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.28918/ijibec.v9i2.10471

Abstract

This research examines Islamic philanthropic zakat schemes as funding mechanisms to strengthen poverty alleviation efforts. A zakat distribution model centred on Micro, Small, and Medium Enterprises (MSMEs) will be proposed as a key recommendation for stakeholders, particularly zakat communities and MSMES actors. This methodology employs quantitative analysis of secondary data, collected via a probability sampling approach to ensure all components or samples have an equal likelihood of inclusion. Data analysis is conducted using Partial Least Squares Structural Equation Modelling (PLS-SEM) via SmartPLS software. For the findings, All hypotheses were accepted with an average significant correlation, indicating robust mutual effects among latent variables. However, the 2024 poverty gap identified by the National Zakat Collection Agency (BAZNAS) necessitates implementing collaborative zakat-MSMEs schemes. The Key MSMEs indicators include digital ecosystems, production growth, and value-added sharing. The paper urges national zakat systems, MSMEs, and communities to align MSMEs programmes with zakat distribution frameworks to optimise poverty reduction.
Islamic Sustainable Finance and MSME Development in Indonesia: Evidence from Bank Syariah Indonesia Ahmad Afif; Ade Wirman Syafei; Siti Hamidah Binti Marwan
Journal of Islamic Economics Perspectives Vol. 7 No. 2 (2025): Journal of Islamic Economics Perspectives
Publisher : Faculty of Islamic Economics and Business, State Islamic University of  Kiai Haji Achmad Siddiq Jember, Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35719/q4ey4f93

Abstract

This paper investigates the critical yet under-explored impact of Islamic sustainable finance reporting on the inclusiveness and distribution of financing to Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. Despite a robust regulatory framework, a significant financing gap persists for MSMEs, raising questions about the efficacy of current sustainable finance initiatives beyond mere reporting. Utilising a quantitative approach, this research analyses data from Bank Syariah Indonesia (BSI), the nation's largest Islamic bank, from 2021 to 2024. Simple regression analysis was employed to examine the relationship between key performance metrics. The results reveal a stark dichotomy: a strong, perfect positive relationship (coefficient = 1.000) was found for Success Rate (SR), indicating that sustainable finance principles, when implemented, are highly effective in driving genuine inclusive outcomes for MSMEs. Conversely, the analysis of the Financing to Deposit Ratio (FDR) showed a non-significant coefficient (0.038), a negative R-squared (-0.071), and a high p-value (0.99), indicating that the current framework fails to systematically differentiate true inclusiveness from consistent error, suggesting potential "SDG-washing". The study concludes that while Islamic sustainable finance provides a potent framework for success, its current implementation lacks the sophisticated risk assessment and auditing mechanisms needed to ensure authentic and scalable financing distribution. The findings urge policymakers and financial institutions to enhance the discriminative power of sustainable finance metrics, moving beyond reporting to develop granular tools that prioritise and authentically support Indonesia's vital MSME sector.