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Strengthening Risk Governance Model of Islamic Microfinance Institutions Based on Maqashid al-Syariah: A Multi-Case Study of BMT Failures in Indonesia M. Sholeh Wafie; Slamet Slamet
Proceeding of the International Conference on Economics, Accounting, and Taxation Vol. 3 No. 1 (2026): Proceeding of the International Conference on Economics, Accounting, and Taxati
Publisher : Asosiasi Riset Ekonomi dan Akuntansi Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61132/iceat.v3i1.266

Abstract

This study analyzes risk governance failures in Islamic Microfinance Institutions (LKMS) using the maqashid al-shariah framework, grounded in Auda’s (2008) systems approach. A multi-case study was conducted at BMT Global Insani Cirebon, which recorded losses of IDR 77 billion, and BMT Mitra Umat Pekalongan, with losses of IDR 50 billion. Together, these cases represented 76% of total BMT losses in Indonesia during 2015–2024. Data were collected through in-depth interviews with eight key informants, document analysis, and direct observation. The findings identified three mutually reinforcing components of risk governance failure: weak institutional governance, unstructured risk identification, and unplanned risk mitigation. These weaknesses indicate inadequate integration of Islamic principles into institutional risk management practices. Based on the findings, a strengthening model was developed comprising three interconnected pillars: Institutional Legitimacy, Supervisory Epistemology, and Substantive Regulation. Each pillar is grounded in the dimensions of maqashid al-shariah and emphasizes institutional accountability, effective supervision, and regulatory compliance. The model provides a framework for strengthening risk governance and promoting sustainable, accountable, and Sharia-compliant LKMS.
Co-Authors Aang Hadi Hendra K Abdul Razak Bin Hamdan Abdul Razak Bin Hamdan Abdullah Sahal Abu Nida Achmad Vandian Nur, Achmad Vandian Ade Yunita Safira Adi Tyawarman Z Adri Alhamdi Adriah Juita Afifah Martanti Agus Sulastio Agusrizal Agusrizal Ainun Muthoharoh Al Muhyiddin Rauf Ali Mandan Aliasir Fahmi Alifia Nur Aini Alimandan Alimandan Alvan Hafiz Rahmarinaldi Aminuyati Andika Pradana Efendi Anesa Surya Angga Buswira Yanto Antonius Aris Kristiawan Ardiah Juita Ardiansyah Ardiansyah Ardiantoro, Luki Ardita Pradayanti Aref Vai Aref Vai Aref Vai Arev Vai Ari Pajri Arif Rizki Zesfi Arif Vai Asfal Fuad Asmariadi Asmariadi Asri Kamila Ramadhani Atikah Anindyarini Ayu Setyowati Aziz Deraman Aziz Deraman Bedri Romi Cici Pramita Daryanto Daryanto Dear Lafiesta Sitanggang Denni Lesmana Dewi Syarifah Dhika Maha Putri DIANA PUTRI Didi Pranatha Doni Kurniawan Dwi Bagus Pambudi Dyyalta Akbar E. Swarandani E.G. Lestari Edy Suryanto Eko Hendrawan Eko Mugiyanto Eli Fitria Era Marliza Erwin Sutomo Erwinsah Erwinsah Evendi Evendi Fajar Rahmat Syahputra Fajrul Rozi Farisman Laia Fauzan Paris Purba Febby Leonardo Fikri Aulia Fitra Illahi Genta Ramadhan Hafitri Hafitri Haris Rinaldi Henry Bambang Setiawan Herman Sutrisno Herwan Saputra Ignatius Adrian Mastan Indah Yuliana Indra Bakti Panjaitan Indragini Indragini Iwann Kusnaidi Jamal Wahdi Jeri Lorenza Jodi Evindra Joel Rejeki Pasaribu Joko Ristono Kasanah Kasanah Khusna Santika Rahmasari Kusrini Laila Fitri Nur Hidayah Latifah Fitriani, Toekidjo, dan Setyastuti Purwanti Lisa Purnama Luthfi Arzit M. Sholeh Wafie Mahdanya Puteri AB Maria Puspa Rija Martha Dinata Mas Mir’atul Mafaza Mutiara Maulana Danar Mochammad Facta muhammad irfan Muhammad Rizky Muhammad Sopianuddin Muhammad Thoib Muhammad Zuhdi Nabil Ibadurrahman Nabilatul Khusna Nela Wahyu Utami Ni Putu Nita Wijayanti Nidia Octaviana Nur Anshori Ruhayati Nur Azian Safitri Nurul Amin Oci Robain Oqta Mesi Ozi pebri Dwi Putra RAGAPADMI PURNAMANINGSIH Rahmaamalia Rahmaamalia Rahmat Hidayat Ramayuliardi Ramayuliardi Ramjan Ramjan Ramos Ramos Randhi Sapta Yuana Rendi Juanda Rexi Hadi Eka Putra Richard Parsaulian Ridho Mulyo Rika Fuspita Rima Febriyanti Rita Arbianti Rizki Cahyo Aji Pratama RM Pramutomo Ronal Ray Fatma Roy Fadilla Silitonga RR. Ella Evrita Hestiandari Rudi Hartono S.J. Pardal Sianipar, Ronald Siti Nur Asia siti Nurindah Sari Soebandriyo Soebandriyo Sri Kusmaniyah Sri Marliana Stanislaus Pedro Sitohang Z Sugito Sugito Sumarwati Sunaryanto Syaiful Efendi Syam Surya Rocky Taqwa Zakariwa Taufik Akbar Tengku Febbi Romadhan Putra Theresia Sinaga Trifena Andrianta Kacaribu Tubagus Mulyadi Tutut Wurijanto Vijay Sembiring W. W. purwanto Wahyu Setiono Wahyudi Rachmanto Widyastuti Handayani Wirasti, Wirasti Wiwik Hidayati Wulan Agustin Ningrum Yadia Rahma Yudy Maryadi Yuli Monica Ramadani Yuni Astuti Dwi Ningsih Yuskri Akbar Yusrini Putri Saragih Zuhdan K. Prasetyo Zulhamsyah Zulhamsyah