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Bulletin of Indonesian Economic Studies
ISSN: 0007-4918 (Print) 1472-7234 (Online) Journal homepage: http://www.tandfonline.com/loi/cbie20
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
To cite this article: Nur Indah Riwajanti (2014) 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, Bulletin of Indonesian Economic Studies, 50:3, 483-484, DOI: 10.1080/00074918.2014.980385
To link to this article: http://dx.doi.org/10.1080/00074918.2014.980385
Published online: 03 Dec 2014.
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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 Microinance 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 microinance 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 suficient 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 indings 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 indings suggest that microenterprises in Indonesia face challenges in gaining access to inance, 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; dificulty in accessing borrowers’ inancial lows; 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 inance, the empirical indings show signiicant 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 inancing received, and the duration of the microenter
-prise’s relationship with BMT or BPRS. Similarly, less than half of the respondents
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 indings present a mixed picture, they show a reduction in the number of poor respondents after inancing—indicating a positive impact.
This study suggests that BMT and BPRS could expand their role in socio economic 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 inanc-ing services, increas
-ing their customers’ understand-ing of Islamic terms used in inancial products, and being more innovative in developing inancial 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-conlict Violence in Indonesia Patrick Barron ([email protected])
Accepted 2014, University of Oxford
What causes postconlict violence to occur in some places emerging from large scale extended violent conlict and not in others? Why do episodes of postconlict 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 postconlict violence vary signiicantly across areas. The Indonesian cases are used here to build a parsimonious theory of the sources of spatial and temporal variance in postconlict violence.
Multiple methods are employed. A new dataset—the National Violence Moni
-toring System—containing over 158,000 coded incidents, maps extended and postconlict 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 ield interviews—identiies the determinants of variations in the levels and forms of postconlict violence.
Postconlict 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 postconlict 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 postconlict 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.
